Dubai, NFAPost: In a recent statement, Dr Thani Al Zeyoudi, the UAE Minister of State for Foreign Trade, hailed the landmark UAE-India Comprehensive Economic Partnership Agreement (CEPA) for its significant contribution to various economic aspects. The integration brought about by the agreement has surpassed expectations, extending its benefits beyond trade, according to Al Zeyoudi.
The CEPA was signed between India and the UAE on February 18 of the previous year, aiming to bolster trade ties. It followed a virtual summit between Indian Prime Minister Modi and Abu Dhabi Crown Prince Sheikh Mohammed bin Zayed Al Nahyan. One of the notable aspects of the agreement is the duty concessions granted to India on the import of gold from the UAE.
Formally implemented on May 1, the CEPA has had a notable impact on the business landscape. Al Zeyoudi highlighted that since the signing of the deal, Indian business owners have shown increased interest in pursuing opportunities in the UAE. In fact, over 11,000 new companies registered with the Dubai Chamber of Commerce in 2022, bringing the total number to more than 83,000.
“The CEPA will undoubtedly be remembered as a significant milestone in the UAE’s history,” wrote Al Zeyoudi in a column for the Gulf News. He emphasized that the agreement marks the nation’s first bilateral deal under its new national strategy to transform the economy into an open global hub for trade, talent, technology, and targeted investment.
The UAE Minister further underlined that the advantages of deeper UAE-India integration extend well beyond trade alone. During a recent bilateral meeting between Al Zeyoudi and Piyush Goyal, the Commerce and Industry Minister of India, held in New Delhi to commemorate the first year of CEPA, it was noted that the agreement holds the potential to double the value of bilateral trade to USD 100 billion by 2030. Al Zeyoudi expressed optimism that the numbers could exceed these expectations.
“When we initiated the CEPA, we projected that it would contribute 1.7% (USD 8.9 billion) to the UAE’s GDP and increase exports by 1.5%. Based on the initial figures, we are on track to surpass those estimates,” Al Zeyoudi stated. He revealed that non-oil trade between the two nations in the first 12 months of CEPA reached USD 50.5 billion, marking a 5.8% increase compared to the corresponding period in the previous year.
In their pursuit to further enhance trade, India and the UAE are exploring avenues to expand their collaboration in value-added gold and gold products. Piyush Goyal mentioned that the UAE holds great importance as a destination for India’s gems and jewellery, accounting for approximately 15% of the sector’s exports. Although the overall gross exports of gems and jewellery decreased to USD 37.5 billion in 2022-23 from USD 39.33 billion in 2021-22, both countries remain committed to strengthening their trade relationship.
The success of the UAE-India CEPA demonstrates the positive outcomes that can be achieved through strategic bilateral agreements. As the partnership continues to flourish, the UAE and India are well-positioned to reap the rewards of their strengthened economic ties.
