Egypt: Hassan Allam Trading & Engineering Chief Executive Officer (CEO) pays a courtesy call on Ambassador
Distributed by APO Group on behalf of Royal Thai Embassy, Cairo, Egypt.
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Riyadh bans most residential infrastructure work in evenings and weekend afternoons
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Khaleej Times
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A senior UAE trade and investment official has called India's latest rupee trade reform a 'game changer' that will deepen economic ties between the two nations. He predicted that non-oil trade would cross the $100 billion mark well before 2030, a figure he said looked unthinkable until just a few years ago. He noted that the move will not only benefit large corporations but also open fresh opportunities for small and medium-sized enterprises on both sides. The Reserve Bank of India (RBI) announced on August 5 that Indian Category-I Authorised Dealer (AD) banks can now open Special Rupee Vostro Accounts (SRVAs) for foreign banks they already have correspondent relationships with, without needing prior RBI approval. What is an SRVA? An SRVA is a dedicated account that allows foreign banks to hold Indian rupees and process payments for trade with India. Until now, prior approval was mandatory. Industry experts say the change removes a long-standing barrier to local currency settlement. The reform has been widely hailed by UAE-based Indian business leaders, who say it will cut costs, speed up transactions, and strengthen the trade corridor between the two countries. Mohamed Haris, Chairman of Alhind Group, called it a positive step towards strengthening cross-border trade. He said the move will ease and speed up transactions between India and the UAE, benefiting businesses on both sides. Rohit Vachchani, co-founder and CEO of Merlin Group, said expanding the use of the rupee in cross-border trade and simplifying settlement processes will enhance efficiency and add resilience to the trade corridor. Historic bonds Highlighting the historic bonds between the UAE and India, the UAE official recalled how the Indian rupee was widely used in the Emirates in earlier decades. 'This reform builds on a long tradition of economic partnership,' he said. 'It will ease transactions, cut costs, and expand trade in ways that reflect our shared history and future ambitions.' 'Allowing settlement in rupees without prior approval will give Indian exporters a stronger competitive edge in the UAE and worldwide markets,' said Rayad Kamal Ayub, managing director of Rayad Group. Indian companies led by the tech industry would increasingly incorporate in the UAE, given the ease of doing business and tax benefits, he added. John Thomas of Dubai-based JV Thomson Chartered Accountants said the rules could encourage Indian companies hit by the recent 50 per cent US tariff on Indian goods to move manufacturing to Gulf countries, where tariffs are far lower. 'The UAE offers a strategic location, a favourable business environment, and a proven re-export model to the US,' he said. Exporters with large US orders are expected to lead the shift, followed by fast-moving consumer goods producers. The UAE is already a major destination for Indian investment, with more than 75,000 Indian companies registered with the Dubai Chamber of Commerce. Experts expect that number to rise sharply as more firms incorporate in the Emirates to leverage rupee settlement, CEPA benefits, and lower tariff exposure. Gagan Mehrotra, portfolio manager at Singapore-based Cocogem Fund, called it 'a visionary move' that will boost bilateral settlements without the 'cumbersome compliance' of third-currency transactions. 'A small Indian exporter can now bill in rupees without having to enter into complex foreign exchange contracts,' he said. The UAE is India's third-largest trading partner, with bilateral trade reaching $83.6 billion in 2023-24, according to India's Ministry of Commerce. Non-oil trade alone stood at $65 billion in 2024, boosted by the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022, which reduced tariffs on most goods. Many products now enter the UAE duty-free, and re-exports via UAE free zones can avoid duties entirely. Banking analysts say integrating payment systems, card networks, and payment messaging between the two countries will be key to maximising the benefits of the RBI's move.