India-UAE Economic Partnership Summit: Roadmap for a promising future of progress & prosperity

Minister of Economy and his Indian counterpart launch ‘India-UAE Startup Bridge’

• E. Bin Touq: The agreement enhances our exports by 1.5per cent and creates nearly 140,000 new job opportunities

• Indian Minister of Commerce and Industry: The agreement has unleashed a golden era in UAE-India economic relations

The India-UAE Economic Partnership Summit was held in Mumbai, India, following the entry into force of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries on May 1. The summit was attended by more than 200 attendees from the government and private sectors, investors, representatives of small and medium-sized companies and entrepreneurs in both countries.

The economic summit is the culmination of CEPA, which marked the beginning of a new era for further progress and prosperity for the peoples of the two countries and serves as a roadmap for a future-oriented partnership that truly reflects the strength of the long standing relations between the UAE and India.

 The summit was attended by H.E. Abdulla bin Touq Al Marri, Minister of Economy, who led the country's trade delegation to India, H.E. Dr. Ahmed bin Abdullah Humaid Belhoul Al Falasi, Minister of State for Entrepreneurship and Small and Medium Enterprises; H.E. Dr. Ahmed Abdul Rahman Al Banna, Ambassador of UAE to India, and H.E. Abdullah Muhamed Al Mazrouei, Chairman of  Abu Dhabi Chamber of Commerce and Industry, H.E. Juma Al Kait, Assistant Undersecretary for Foreign Trade Affairs at the Ministry of Economy, H.E. Faisal Al Hammadi, Acting Assistant Undersecretary for Entrepreneurship and SMEs, and several leading UAE businessmen.

From the Indian side, H.E. Piyush Goyal, Commerce and Industry Minister, H.E Sanjay Sudhir, Ambassador of India to UAE, Rajan Navani, the Founder and CEO of JetSynthesys and a large number of Indian businessmen and investors in various economic sectors participated in the Summit.

The summit featured three main sessions, where the opening session was titled "India - UAE CEPA: Unleashing the Golden Age".

During the opening session of the summit, H.E. Bin Touq and H.E Piyush Goyal launched the "India-UAE startup Bridge,” a shared platform for small and medium-sized companies that features all the advantages and information needed by companies in the two countries. It supports knowledge exchange, implementation of joint programs and capacity-building to provide new investment opportunities for companies in both countries to enable their sustainable growth.

https://www.moec.gov.ae/cepa_india" 

On the sidelines of the Summit, the UAE delegation held meetings with investors, entrepreneurs, and representatives of startups in both New Delhi and Mumbai. Investment opportunities in the two countries were reviewed, in addition to a meeting with officials of several Emirati investments operating in various Indian markets.

H.E. Bin Touq said that, under the directives of the wise leadership, and with the support and patronage of His Highness Sheikh Mohammed bin Zayed Al Nahyan, President of the State; and H.E. Narendra Modi, Prime Minister of India, the UAE and India have kickstarted a new golden era in their bilateral relations. “I led an economic and trade delegation to India in May to make the optimal use of the opportunities and possibilities that are being created, and elevate economic relations towards new and unprecedented levels,” he said.

“This year we celebrate the 50th anniversary of the establishment of India- UAE diplomatic relations. Trade has always been a strong foundation for bilateral relations between the two countries, as India is the second largest trading partner of the UAE. We are the third largest trading partner of India, and in 2021 non-oil trade exchange amounted to USD 45 billion. India is also the UAE's number one trading partner in terms of non-oil exports, accounting for 14per cent of our total global exports”, he added.

Moreover, H.E pointed out that the UAE is the second-largest export destination and the third most important source of imports for India. The UAE also accounts for 40per cent of India's total trade with the entire Arab world. In addition, India ranked ninth among the largest recipients of foreign direct investment from the UAE in terms of inflows since it reached USD 51 billion in 2019.

H.E. said that the economic and trade partnership between the two countries is based on the values ​​of cooperation, respect for common interests, mutual benefit, and a spirit of cooperation and friendship. Through the CEPA, the governments of the two countries have laid the foundation for their private sectors to capitalzie on this distinguished bilateral partnership.

Besides, H.E. indicated that the agreement reflects the UAE's desire to expand the scope of cooperation with its strategic partners and promising markets to facilitate the flow of goods and services, rebuild supply chains, strengthen the country's position as a global trade center, and create more new opportunities for investment and new business models. The agreement is expected to achieve GDP growth of 1.7per cent in the next decade, increase the UAE’s exports by 1.5per cent, and create more than 140,000 new jobs.

In addition, H.E. reviewed the most important economic achievements accomplished by the UAE in 2021. He said: "At a time when international organizations expected the UAE's economy to grow by 2.1per cent in 2021, the country recorded a growth of 3.8per cent. IMF now estimates that our national economy is set to achieve nearly 4.2per cent growth in 2022, instead of its previous prediction of 3.5per cent.” This is a result of several contributing factors, including the country's ability to manage the repercussions of the pandemic crisis with high efficiency and mitigate the impact on various economic sectors, in addition to the current recovery in oil prices.

H.E said that at a time when the world's economies are seeking to recover, the UAE succeeded in attracting USD 21 billion in FDI in 2021 with a 3.9 per cent growth, as per AT Kearney Foreign Direct Investment Confidence Index.

Moreover, he reviewed a number of the most prominent initiatives adopted by the UAE, including the development and introduction of amendments to more than 40 laws to improve the business environment and competitiveness of the state. The most prominent among them is the amendment to the Commercial Companies Law, allowing foreign investors to own 100per cent in all major economic sectors.

He underlined that the CEPA offers more openness and freedom to the movement of goods across borders, which means more growth and business.

The Minister of Economy said that these developments represent an open invitation for the Indian private sector to be part of the UAE’s new growth vision.  “The non-oil national economy today represents more than 70per cent of our GDP. The UAE also boasts a highlly developed network of infrastructure and logistical services that extend to more than 400 cities around the world”, he added.

He emphasized that foreign trade will play a key role in the efforts to double the size of the UAE economy from USD 381 billion to USD 762 billion by 2030.

The session touched on the historical relations between the UAE and India that have lasted 50 years, the two countries' shared aspirations for growth, and partnerships in trade and investment to enhance the dynamism of trade, investment, and innovation in various sectors, including economy, energy, climate action, emerging technologies, skills, education, food security, health care, defense, and security.

The session further discussed common global challenges, achievement of shared goals, and building a strong and flexible future-ready partnership.

The Indian Minister of Commerce and Industry noted that the CEPA has unleashed the golden age of economic relations between the two countries.

He added: “The aspirations of the two countries are similar, as we have a shared vision and desire to advance this partnership towards more advanced horizons”. He said that his country’s government attaches great importance to CEPA which will bring huge gains to the economies of the two countries.

He then highlighted the importance of the ‘India-UAE Startup Bridge,’ given the growing importance of the emerging small and medium-sized companies sector as the main pillar in economic development.

The summit also witnessed a session on ‘Developing the technology agenda to enhance partnerships and promote entrepreneurship and startups,’ during which the participants stressed the importance of the UAE's strategic location as a global hub for talent, skills, and international companies, as it provides huge business opportunities for people from all over the world.

The participants also discussed the leadership of the UAE and its active role in providing opportunities for Indian startups operating in the field of financial technology, whose presence in the UAE eased their access to many promising regional and international markets.

Furthermore, the session reviewed the progress achieved by the two countries in supporting and developing technological innovation, as India is the third largest tech ecosystem in the world, while the UAE aims to be the global center for technology in the future.

Meanwhile, H.E. Ahmed Belhoul Al Falasi said: “The India-UAE relations are distinguished and hisorical. Today, we are establishing a more distinguished and comprehensive strategic partnership that covers new industries and sectors”.

“Our bilateral economic and trade relations are witnessing continuous growth, and CEPA is a worthy recognition of the strong bilateral relations that bind the two countries and extend over 50 years. In the next stage, we will work to enhance the dynamism of trade, investment, and cooperation in the new economy sectors in various sectors such as digital economy, energy, climate action, emerging technologies, skills, education, food security, SMEs, and healthcare,” he added.

“Among these sectors, SMEs are the backbone of a developed economy and have exceptional importance to the UAE - as they play a major role in enhancing the economic growth of the country, and represent a catalyst in our efforts to build a competitive, resilient and sustainable economy over the next 50 years”, he added.

H.E. then reviewed some of the main indicators of the sector and explained in this regard that small and medium-sized companies represent more than 94 per cent of the total companies and private sector establishments registered in the UAE, and contribute to more than 50 per cent of the national GDP.

He said: "The UAE leads the region in establishing a legislative and institutional environment to nurture the growth of entrepreneurship and SMEs. The state has launched several initiatives that support this trend, and has also taken into account the legislative and legal amendments required to serve the entrepreneurial environment and emerging technologies, reducing the cost of doing business, opening new markets, providing more support for SMEs and creating opportunities for them to grow.”

H.E. stated that the timing of the CEPA between the two countries is ideal since the agreement allocates a whole chapter for India- UAE cooperation in the small and medium-sized companies sector and provides a platform for small and medium-sized companies in the UAE to expand internationally by giving them access to clients and networks and new ways of cooperation. In addition, it has established a mechanism for exchanging information on all aspects related to trade, including laws, regulations, procedures, business registration, technical regulations, standards, and SME programs.

H.E Dr. Ahmed Al Banna said that the CEPA is an important step in driving future economic growth in the UAE and India, and that the private sector and investors now have bigger roles to play in capitalizing on the opportunities and capabilities offered by this historic agreement.

The summit also witnessed a session entitled: "UAE: a hub for trade, manufacturing and logistics services for the GCC, African and European markets." It discussed the importance of the India-UAE CEPA, which constitutes a starting point for achieving the aspirations and goals of the two countries and benefiting from the UAE's strategic location, in addition to being a party to many regional and bilateral free trade agreements, including with the GCC countries.

The session further discussed the benefit that the Indian industry stands to gain from the agreement and its access to the African market. With the increase in exports, there is a greater opportunity to establish manufacturing bases in the UAE to ensure higher productivity levels.

In addition, the session reviewed areas of opportunity in the UAE for Indian manufacturers to get closer to the GCC countries, Africa, and other markets, in addition to the possibility of the Indian industry sector benefiting from the CEPA to drive globalization.