There may be little query that the UAE-India Complete Financial Partnership Settlement (CEPA) will come to be considered a big milestone within the historical past of the UAE.
Particularly, it was the nation’s first bilateral deal as a part of its new nationwide technique to reimagine the financial system as an open world hub for commerce, expertise, expertise and focused funding. This week, as we met with our counterparts in India to rejoice the anniversary, we have been capable of replicate on how it’s pointing the way in which to a brand new period of worldwide commerce.
Signed on February 18, 2022 within the presence of His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE, and Narendra Modi, Prime Minister of India – and applied on Could 1, 2022 – the UAE-India CEPA was designed to ship seamless entry to the world’s fifth-largest financial system – and a market of 1.4 billion folks.
By eradicating or decreasing tariffs on 80 per cent of products, eliminating pointless boundaries to commerce and opening authorities procurement to one another’s personal sector, the UAE-India CEPA carried the potential to greater than double the worth of bilateral commerce to $100 billion by 2030. There are already alerts that the numbers will go larger nonetheless.
We proceed to work in shut cooperation with my counterpart Piyush Goyal, the Indian Minister of Commerce and Business, and his workforce to make sure each nations are deriving the utmost profit from the deal. This week, for example, our workforce has been again to India to convene the primary Joint Committee, which we agreed would meet one 12 months after implementation to evaluation and refine the CEPA’s phrases.
It was a possibility to cement one of many UAE’s most pivotal worldwide alliances and refocus efforts on facilitating capital flows into sectors akin to agritech, logistics, superior expertise and renewable vitality. All of us perceive we can’t afford to face nonetheless.
Actual influence, surging numbers
After we launched the CEPA, we anticipated that the deal would add 1.7 per cent – or $8.9 billion – to the UAE’s GDP and enhance exports by 1.5 per cent. We’re on track to surpass these numbers.
Preliminary figures present that, for the primary 12 months of the CEPA, the worth of non-oil commerce reached $50.5 billion, a rise of 5.8 per cent on the corresponding interval a 12 months earlier.
Importantly, that progress was recorded as world commerce declined in each Q3- and This fall-2022, which helps the competition that the CEPA helped insulate us from tightening financial circumstances.
The image in Q1-2023, the final quarter for which we’ve got full numbers, is much more encouraging. Complete bilateral commerce elevated 16.3 per cent in comparison with the earlier quarter to achieve $13.2 billion, with the UAE’s non-oil exports to India climbing 8 per cent.
This elevated commerce exercise additionally mirrored in main logistics suppliers including supply-chain capability between the 2 nations, for instance, SeaLead established a service on the India-Dubai-East-Africa (IDEA) route quickly after the CEPA implementation, demonstrating its potential to influence commerce flows throughout the broader area.
New investments, new alternatives
The advantages of higher UAE-India integration have been far broader than simply commerce. Indian enterprise homeowners have been spurred to pursue new alternatives within the UAE, with 11,000 new firms registering with the Dubai Chamber of Commerce in 2022, bringing the full to greater than 83,000. Malabar Gold & Diamonds, one of many largest jewellery retail chains on this planet, determined to consolidate its worldwide operations in a brand new Dubai headquarters.
Within the different course, UAE cable producer Ducab opened a brand new workplace in Bengaluru in January to raised serve its rising buyer base within the Subcontinent, whereas DP World opened new expertise facilities in Hyderabad, Bengaluru and Gurugram. Different strategic investments into India from the UAE embody assist for a 300MW hybrid renewable vitality plant in Gujarat and funding for a collection of sustainable meals parks.
That is, in fact, simply the beginning. The UAE-India CEPA has been designed to create long-term sustainable alternative – and its inbuilt flexibility, as demonstrated by the work of the Joint Committee, will allow us to ship it.
The UAE and India are dedicated to growing this distinctive framework, which can outline bilateral relations for many years to return.