Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, has just returned from a fruitful visit to India. The trip cemented the economic partnership between the UAE and India with a raft of trade agreements in areas ranging from IT development to construction. The India trip comes after a similarly productive visit to China in December, where a joint fund worth $10 billion (Dh36.7bn) between Mubadala and two Chinese state institutions was announced. For a small country, the UAE has positioned itself at the centre of global trade.
Writing for CNN yesterday, Dr Sultan Al Jaber, Minister of State and chairman of Masdar, argued that the UAE’s relationship with China and India is proof positive that global trade is rebalanced with the UAE in the centre. With bilateral trade between the UAE and both India and China growing to nearly $60 billion each, the future promises to be mutually beneficial for all three countries.
The UAE can extend its positive influence in China and India through human development and infrastructure. Many Indian expatriates, for example, have set up successful businesses in the UAE where they have obtained valuable skills and best practices. One of India’s great challenges is reforming the country’s business climate and stemming the brain drain. Abandoning archaic business laws and encouraging foreign direct investment is the best way to achieve this goal. Not only has the UAE committed to high levels of investment but also the skills and knowledge developed by Indian expatriates can and should be repatriated to India to help grow the economy.
Trade between China and the UAE is booming to its highest levels as Chinese firms are looking for new ways to penetrate the Middle Eastern market. Chinese nationals already make up a significant minority at nearly 200,000. Building on historic links between China and the Gulf, the economic relationship has a promising future as China pushes forward with a new Silk Route across the region.
As Dr Al Jaber notes, the UAE leadership “recognises that by enhancing relations with these great nations [China and India], we can realise even greater dividends in terms of peace, security and prosperity”. In these uncertain and challenging times, our economic partnerships are blossoming into strong alliances that position the UAE as a pivotal country at the heart of global trade.
