Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Indian Prime Minister Narendra Modi during a previous official visit. Reuters
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Indian Prime Minister Narendra Modi during a previous official visit. Reuters
Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Indian Prime Minister Narendra Modi during a previous official visit. Reuters
Insight and opinion from The National’s editorial leadership
February 19, 2022
An online summit on Friday between Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, and Indian Prime Minister Narendra Modi broke new ground in economic links between the Gulf and the Indian subcontinent. Both leaders might have been separated by a great physicaldistance, but the overall impression was one of the two countries coming closer together. The summit culminated in the signing of an 881-page UAE-India Comprehensive Economic Partnership Agreement (CEPA).
“The fact that we were able to agree the terms of a deal of this size, scope and importance within five months, demonstrates the power of our shared vision,” said Abdullah bin Touq Al Marri, the UAE Minister of Economy, in a press conference in New Delhi on Friday.
That shared vision is already on a strong footing; the UAE is India’s third-largest trade partner and bilateral non-oil trade is anticipated to rise to $100 billion within five years. The two also have a number of recent major foreign direct investment deals.
CEPA is expected to lead to more economic co-operation, trade and investment between the two.
The shared vision between the UAE and India is already on a strong footing
It is one of the biggest milestones in the history of the bilateral relationship and the culmination of a longer period of increased co-operation over the past few years, which kicked off with a visit by Mr Modi to the UAE in 2015. Since then there have been four official trips between the leaders, and in 2017 both countries signed the Comprehensive Strategic Partnership.
The benefits of CEPA and today's wider discussions go beyond the bilateral realm. In September of last year, during talks in New Delhi on the formation of CEPA, Thani Al Zeyoudi, UAE Minister of State for Foreign Trade, described the deal as a moment to “strengthen the UAE’s position as a global gateway to Africa, Asia and Europe, driving economic growth and prosperity across the region”.
The UAE’s economic shift towards Asia is the context in which growing relations with India should be viewed. It is not just in New Delhi where Emirati officials are building on key trading relationships. China, for example, is the UAE’s largest non-oil trading partner, worth roughly $47bn in 2020. Saudi Arabia is second at almost $30bn. That means the country’s top three non-oil trading partners are not in the West, but the East. Building ties with eastern allies will be key to maintaining the UAE’s status as a global commercial hub. There is particularly great potential with India, given that an estimated 3.5 million Indian citizens live in the Emirates, making them the country’s largest expatriate community.
Just the numbers of this burgeoning relationship give a clear sense of its huge value. But in the face of dizzying economic and social statistics, it is important to remember that ties run deeper. The millions of Indian citizens living in the country make a huge contribution to life in the UAE, helping make it one the most diverse societies on the planet. While today is one to celebrate shared prosperity, it is also one to celebrate a social bond that has been with the UAE since its foundation.
Daniella Weiss and Nachala Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich 1
Kimmich (27')
Real Madrid 2
Marcelo (43'), Asensio (56')
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
