The landmark Comprehensive Economic Partnership Agreement (Cepa) between the UAE and India has helped drive bilateral trade growth by 16.41 per cent since 2022 while strengthening collaboration to promote startups through exchange of best practices between accelerators, incubators, and other such ecosystem stakeholders, Minister of Economy Abdulla Bin Touq Al Marri said.
The minister, who led a UAE delegation to India last week, said given the robust pace of growth in two-way trade, the two countries are on track to go beyond achieving the goal of $100 billion in non-oil trade by 2030.
He said the Cepa that came into force on May 1, 2022 unlocked an array of benefits for the private sectors. In the first two years since the pioneering agreement came into effect, trade between the two countries has grown remarkably by 16.41 per cent, with total trade growing from $72.87 billion in 2021-2022 to $84.84 billion in 2022-2023.
Major Indian export sectors have witnessed considerable growth following the implementation of the Cepa, with Indian exports of gems and jewellery, drugs and pharmaceuticals and fruits and vegetables to the UAE recording significant growth. Indian FDI in the UAE is also growing, as 11,000 new Indian companies were registered in 2022, taking the total number of Indian companies operating in the UAE to more than 83,000.
The UAE delegation held discussions with top leaders of the Indian state of Tamil Nadu on strengthening cooperation in the sectors of the new economy, tourism, entrepreneurship, SMEs, transport and fintech, during its recent visit to the country.
Al Marri held bilateral meetings with M K Stalin, chief minister of Tamil Nadu, Dr T R B Rajaa, minister for Industry, Investment Promotion and Commerce of Tamil Nadu, in the presence of Alia Bint Abdulla Al Mazrouei, the UAE Minister of State for Entrepreneurship.
He said cooperation in startups and SMEs is an integral aspect of the Cepa. The agreement has strengthened this collaboration to promote startups through exchange of best practices, through strengthened relations between accelerators, incubators, and other such ecosystem stakeholders. Al Marri said the launch of the ‘India-UAE Startup Bridge’ brought this vision to reality.
The minister said the startup bridge is a one stop platform that makes information regarding the Indian and UAE startup ecosystem easily accessible to entrepreneurs and stakeholders from both sides. “It aims to facilitate capacity building of incubators, incubation opportunities for startups, cooperation between investment firms in the UAE and Indian venture capital and private equity firms, and fundraising support and data needed to help startups and turn into unicorns.”
Al Marri emphasised that the UAE and India share strategic economic, political and cultural relations, which continue to grow and scale new heights. “India is a strategic economic partner to the UAE and we look forward to continuing to work with our partners in the Indian government in sectors and areas of mutual interest. Our joint efforts will contribute to enhancing the distinct economic partnership between the two countries, thus supporting the growth and sustainability of both economies.”
Al Marri said the UAE’s FDI in the Indian markets cover several vital economic sectors, most notably renewable energy, software, IT services, and automotive manufacturing.
The non-oil trade exchange between the two countries is also witnessing continuous growth, with the total value of non-oil trade between the two sides exceeding $53.5 billion in 2023, a growth rate of 3.9 per cent compared to 2022.
Reviewing the UAE’s efforts in developing the tourism sector, especially in light of the objectives of the National Tourism Strategy 2031, Al Marri said the strategy aims to raise the country’s status as the best tourism identity in the world, consolidating its position as a leading tourism destination; increase the sector’s contribution to the national GDP to Dh450 billion; and attract new investments of Dh100 billion to the national tourism sector by the next decade.