The UAE and India have “ample opportunities” to deepen economic and people-to-people ties, the Emirates' senior diplomat in India said as the two countries marked one year of a crucial economic pact.
After India and the Emirates signed a Comprehensive Economic Partnership Agreement (Cepa) in February last year, it came into effect on May 1.
The aim of the pact is to provide opportunities for building new and sustainable partnerships between the two countries.
On the first anniversary of the treaty, Abdulnasser Alshaali, the UAE ambassador to India, said that the pact had already proved a success.
Trade between the UAE and India has increased to $38.6 billion in the first nine months of 2022 — almost double the figure recorded in the same period of 2020.
"We have already exceeded $40 billion in non-oil trade, $80 billion in oil trade and the target is $100 billion by 2027," the ambassador said.
Mr Alshaali said the agreement has helped cultivate interest and awareness among investors and businessmen in both countries to use the framework to increase exports.
The UAE is currently India’s third-largest trading partner and its second-largest export destination.
The Cepa has helped exporters to enhance their market access by eliminating or lowering tariffs on more than 80 per cent of products, simpler customs procedures, clear and transparent rules and rule-based competition.
“The Cepa framework has generated so much interest from both ends to travel to different countries and avail opportunities, whether it is for SME level, big corporates or the private businesses level,” Mr Alshaali said.
“The UAE is an exporting hub and we have signed more Cepas [with other countries]. This would make it quite easy for export to other places while making sure the UAE is part of the value chain and is facilitating financing and access to markets.”
The diplomat said the achievements have cemented the belief that India and the UAE are enjoying a prosperous spell.
“It is a golden era. We have always been partners … as ancient as the establishment of the UAE. But there is now a different understanding and a way to look at the bilateral relations, partly because of the leadership in both countries. We want this relationship to evolve,” he said.
“This momentum started about 8 to ten years ago. The partnership has always been there but there is a significant interest that we do not let any opportunity go wasted.”
He also emphasised the need to strengthen people-to-people ties between the two countries.
India shares historic relations with the Gulf nation. The Indian diaspora is the largest in the Emirates with 3.5 million living in the UAE as of 2021.
The community is largely engaged in financial, educational and health infrastructure, with Indians filling a range of positions, from entrepreneurs to white and blue-collar workers.
“We want Indians to see UAE as their home, from doing business to travelling to send their children to pursue their higher studies in the UAE," Mr Alshaali. "We are making sure to make it easier for Indians in every aspect.”
The ambassador also welcomed New Delhi’s invitation to the UAE to be a Sherpa, or special summit representative, at this year’s G20.
India holds the presidency of the forum this year and while the UAE is not part of the group, the Gulf country has been invited as a special guest, alongside Oman and Egypt.
The UAE will also take part in the G20 leaders' summit in September.
“The Indian government is doing great in managing this year’s G20,” the ambassador said. "It is making sure that meetings are held in different places so that we get to see different parts of the country.
“It is clear that the Indian presidency wants to make sure that they bring everyone to the table and give out strong statements that reflect solidarity and keenness to work together."
