Scaling New Heights in Trade & Investments

Economic trends and demands are not only changing rapidly but also increasing on a global level.

The UAE and Indian governments were triumphant in identifying this issue and made endeavors to resolve the neglected strategies. In February 2016, a 3-day historic visit was made by UAE’s high profile and the delegation that included Sheikh Mohammed bin Zayed and Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince Dubai. Similarly, the visit of PM Modi in 2015 is also remarkable as no Indian President visited UAE since 1981. This visit is also considered remarkable as both sides agreed to elevate their bilateral relations for a stronger commercial and strategic partnership. In 2016, His Highness Sheikh Mohammad Bin Zayed Al Nahyan to India in February 2016. Similarly, HH Sheikh Mohammad is also invited on Republic Day 2017 as the Chief Guest of the Indian Government. Thus, there has been a consistent demonstration of efforts to improve the relation between the two countries.

The two side’s leadership agreed to establish a UAE-India Infrastructure Investment Fund setting an ambitious target of $75 billion to support the investment for India’s infrastructure. Furthermore, a task force was set up to nudge investments under this fund. Similarly, mutual cooperation in other fields including trade, investment, security, joint defence production, space programmes, and IT and electronics, is also acknowledged. The fact that the two countries share cultural affinity and commercial linkages seems to strengthen their bond in the future.

UAE-India Economic Forum (UIEF)

UIEF is an excellent platform to discuss and evaluate the trade opportunities and current strategic status of UAE and India economic relations. The recent developments have led to a strong need to create an economic forum for the investors of both countries wherein it could be possible for them to remain aware of the real time news and impact of the expected surge in bilateral business volumes.

This platform is focusing on critical sectors like infrastructure, tourism, banking, and renewable energy. It strongly aims to address a policy framework and guidelines that works to attract the investors, large corporates, industries and sovereign wealth funds.

This forum also provides an opportunity to traditionally closer and friendly countries allowing them to explore the cross-border trading and investment opportunities. It also provides a direct window to discuss the regulations, policies, and support from concerned government authorities at the same time.

After the success of 2015 summit that attracted 300 delegates, the second summit of UAE India Economic Forum took place on Oct 19-20, 2016 at Madinat Jumeriah. Business leaders and government authorities from both countries discussed significant opportunities for a strong bilateral partnership.

Foreign & Economic Policy

In the overall realignment of foreign policy goals, India sees its relation with UAE extremely critical to its coordinated strategy in international relations spanning economic, political, and strategic interests. Sheikh Mohammad’s visit came at a time when the Indian economy was opening up additional sectors to foreign investments. Thus, both countries have several positive benefits to offer.

INDIA UAE Primary Trade Partner

India is also the largest importer of goods from the UAE accounting approximately 14.9% of the country’s exports. There are plenty of opportunities for economic co-operation and the establishment of joint ventures between the UAE and India. In fact, every economic facility is a viable opportunity for establishing partnerships.

Investment Relations

The investments of UAE in India are mainly concentrated in five sectors: construction development (16 %), energy (14 %), metallurgical industries (10 %), services (10 %), and computer software and hardware (5 %). Other sectors include petroleum products, precious metals and stones, jewellery, metals, chemical materials and wooden products.

The non-oil trade of India-UAE valued at $29,023.68 in 2007-2008.This two-way trade showed a 40% growth for 2007-2008 over the previous year. Besides, dozens of other different products are being imported and exported ultimately increasing the revenues for both sides.

State of Tourism

Tourism sector is being considered as a potential and emerging sector for future growth, especially medical tourism. Another area with significant scope for investment is construction and maintenance of hotels. Take Burj-Al-Arab and the  skyscraper Burj Khalifa in Dubai as an example, the tallest structure in the world. As per the tourism statistics and trends, Dubai is the 4^th most visited city in the world after Paris, London and Bangkok. There is good opportunity for UAE to invest in the over-all tourism sector in India, which would help in attracting tourists to both UAE and India trade relations.

UAE-India Trade Hit USD 100 billion in 2022

Bilateral trade between the UAE and India has grown significantly from $180 million in the 1970s to about $60 billion per annum, and is predicted to reach $100 billion by 2020.

In 2014, the total volume of foreign trade between the two countries amounted to USD 60 billion, making UAE as India’s primary trade partner in the Middle East.

Experts believe that if the economic forum of both UAE and India continues to strengthen their coordinated efforts, the goals of massive investment are likely to meet a little earlier.  The approaching time is indeed a golden period for the investors as leaderships of both sides are confident about the effectiveness and positive consequences of the wise investment decisions. Together, UAE and India can shape the future as both countries are extending cooperation in important business and trade areas. Both governments have the ability to utilize their proficiency for mutual good and may learn a lot from each other to enhance and improve their distinctive trade matters.

 
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