Latest news with #UAE-IndiaComprehensiveEconomicPartnershipAgreement
Arabian Business
17-04-2025
- Business
- Arabian Business
India, Middle East can step in to reshape global trade amid Trump tariff war, expert says
As US President Donald Trump's tariffs trigger a projected 0.2 per cent contraction in global merchandise trade, the strategic economic partnership between India and the Middle East offers an alternative model for trade resilience and growth, according to regional economic experts. 'As talk of tariffs and trade wars rocks stock markets around the world, the strengthening of connections between India and the Middle East stands out as a rare beacon of opportunity for growth-focused investors,' Andrew Stevens, Principal Representative – MENA at EquitiesFirst, a specialist global equity-backed financing provider, told Arabian Business in an exclusive interview. 'Already Dubai's airports are packed with Indian travellers, while UAE sovereign wealth funds are pouring billions into Indian companies and infrastructure projects, and Indian firms like Lulu Group are making waves in the UAE's capital markets,' he said. 'Now, with the India-Middle East-Europe Economic Corridor (IMEC) taking shape, this partnership could reshape global trade.' Strengthening India-UAE economic eies Stevens said the UAE's position as a global financial hub can complement India's growing capital markets, enabling more Indian firms to list in the UAE and vice versa. Strengthening startup and SME collaboration through joint venture funds and incubators would also diversify India-UAE investment avenues beyond traditional sectors like real estate and energy, he said. 'To further enhance bilateral investments between India and the UAE, policymakers should focus on deepening economic integration through strategic initiatives,' he said. The MENA top executive of EquitiesFirst, which services founders, entrepreneurs, CEOs, board members and other high-net-worth individuals (HNWIs) globally, said while the UAE-India Comprehensive Economic Partnership Agreement (CEPA) laid a strong foundation by reducing tariffs and increasing trade flows, expanding this framework to include services, digital trade, and investment protection agreements would further strengthen economic ties between the two regions. 'Both nations should also explore joint infrastructure projects, particularly in logistics and energy, to support the India-Middle East-Europe Economic Corridor (IMEC). Additionally, streamlining regulatory approvals for cross-border investments, especially in sectors like real estate, fintech, and renewable energy, would encourage more capital flows,' Stevens said. He added that the UAE's sovereign wealth funds (SWFs) have shown strong interest in India's consumer and infrastructure sectors, so targeted incentives for long-term investments – such as tax breaks or fast-tracked approvals – could accelerate funding. He said capital and investments are already flowing between the two nations, citing the examples of Abu Dhabi Investment Authority's (ADIA) $500 million investment in India-based eyewear retailer Lenskart in 2023, and its move to set up a $4 billion fund to invest further in the following year. 'Several sovereign wealth funds from the Middle East have invested in highways and other infrastructure. In the opposite direction, Indian entrepreneurs are building on their successes in the UAE and benefiting from the expansion of the Emirates' capital markets,' Stevens said, citing the $1.72 billion IPO of Lulu Retail in 2024 as a recent example. Stevens also pointed out that Indian investors are the largest foreign owners of real estate in the UAE, with investments valued at around $30 billion. Still, despite this strong momentum, Stevens cautioned that hurdles remain. 'Regulatory complexities in India, including bureaucratic delays in approvals and land acquisitions, remain a challenge. India's taxation policies and retrospective regulatory changes sometimes create uncertainty for foreign investors,' Stevens said. He also cited the issue of currency volatility – such as the rupee's depreciation – as another challenge which poses risks for long-term investments, discouraging some UAE-based funds from increasing exposure. 'Another issue is limited diversification in investment sectors. Most UAE investments in India are concentrated in real estate, infrastructure, and energy, while opportunities in manufacturing, technology, and healthcare remain underleveraged. Conversely, Indian investments in the UAE are heavily skewed toward real estate, with fewer ventures in high-value sectors like finance and logistics,' Stevens said. Beyond trade barriers As global trade faces mounting pressures, experts say the UAE's broader strategy of 'strategic interdependence' may offer a model for insulating economies from tariff shocks. 'It's not about strategic autonomy anymore. It's about creating strategic interdependence, because that's the only way with which we can collectively survive in a world where multilateral action is receding,' Dr Khalifa Al Suwaidi, Research Fellow at Abu Dhabi's Anwar Gargash Diplomatic Academy, told Arabian Business in a recent interview. The UAE's approach to international trade agreements demonstrates a significant shift from traditional tariff reduction to embedding deeper, multi-sector cooperation. 'The UAE embeds its relations with countries through CEPAs in a way that helps these relationships outlive incumbents, whether they are democratically elected or otherwise,' Al Suwaidi explained. 'It's still leader-to-leader diplomacy, which the UAE has been adept at for quite some time, but it's now morphing into something enshrined in formal agreements that extend across multiple spheres and sectors.' This strategy is increasingly relevant as Trump's tariffs target major economies, including China, the EU, Canada, Mexico, Japan, and South Korea—leaving US businesses expected to pay between $1 billion to $2 billion per day in tariff costs, according to CNBC. So far, Gulf Cooperation Council (GCC) countries have largely been exempt. For countries bracing against the effects of global trade shocks, the UAE's diversification plan is being watched closely. 'The UAE's CEPA strategy has been designed to develop a diversified trade portfolio and become a trade hub,' said Mahdi Ghuloom, Junior Fellow in Geopolitics at the Observer Research Foundation Middle East. 'While Trump's tariffs are a separate issue, the UAE's CEPA push reflects foresight and an effort to insulate itself from global trade volatility.' This aligns with the country's goal of reaching AED4 trillion (approximately $1.09 trillion) in trade by 2031. 'The scale of diversification reduces reliance on any one bloc of markets,' Ghuloom added, noting that when CEPAs proliferate, they help mitigate negative shocks from specific trading partners. 'The UAE's CEPAs include provisions on investment, competition, and public procurement. This signals regulatory maturity and strengthens the UAE's credibility as a destination for long-term investment,' he explained. As countries worldwide respond to US tariffs with retaliatory measures – such as Canada imposing 25 per cent tariffs on US goods and China introducing new tariffs on critical minerals – the India-Middle East corridor presents a rising alternative to traditional trade routes. Stevens added that the potential for trade growth between the UAE and India, the need to diversify the economic base of Middle Eastern economies and India's focus on labour-intensive growth will create a range of opportunities for investors looking to profit from the next chapter of globalisation. 'Flexible, non-recourse financing can be a compelling funding solution for long-term shareholders with an eye on this tremendous potential,' Stevens said.
TAG 91.1
10-04-2025
- Business
- TAG 91.1
H.H. Sheikh Hamdan concludes India visit
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and the UAE's Deputy Prime Minister and Defence Minister, has concluded his first official visit to India. He held talks with Prime Minister Narendra Modi and other senior leaders to strengthen ties between the two countries. During the visit, eight key agreements were signed covering areas like healthcare, education, infrastructure and maritime services. These build on the momentum of the 2022 UAE-India Comprehensive Economic Partnership Agreement (CEPA) and the Bilateral Investment Treaty (BIT), which have created a strong foundation for a more open, secure and investment-friendly economic relationship. Sheikh Hamdan praised the strong and growing partnership between the UAE and India, calling it a model of mutual trust and shared ambition. He also highlighted the important role of trade, innovation and technology in shaping a brighter, more connected future for both nations. In a message shared at the end of his trip, Sheikh Hamdan thanked Prime Minister Modi and the Indian people for their warm hospitality. As I conclude my visit to India, I extend my heartfelt gratitude to Prime Minister @NarendraModi, as well as to government and people of India for their warm welcome and generous hospitality. The UAE and India share civilizational ties that span centuries. Today, we move forward… — Hamdan bin Mohammed (@HamdanMohammed) April 10, 2025 Hamdan bin Mohammed concludes first official visit to India. His Highness commended the longstanding partnership between the two nations in the journey toward a prosperous future, saying that the relationship is rooted in mutual trust and respect. — Dubai Media Office (@DXBMediaOffice) April 10, 2025
Dubai Eye
10-04-2025
- Business
- Dubai Eye
H.H. Sheikh Hamdan concludes India visit
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and the UAE's Deputy Prime Minister and Defence Minister, has concluded his first official visit to India. He held talks with Prime Minister Narendra Modi and other senior leaders to strengthen ties between the two countries. During the visit, eight key agreements were signed covering areas like healthcare, education, infrastructure and maritime services. These build on the momentum of the 2022 UAE-India Comprehensive Economic Partnership Agreement (CEPA) and the Bilateral Investment Treaty (BIT), which have created a strong foundation for a more open, secure and investment-friendly economic relationship. Sheikh Hamdan praised the strong and growing partnership between the UAE and India, calling it a model of mutual trust and shared ambition. He also highlighted the important role of trade, innovation and technology in shaping a brighter, more connected future for both nations. In a message shared at the end of his trip, Sheikh Hamdan thanked Prime Minister Modi and the Indian people for their warm hospitality. As I conclude my visit to India, I extend my heartfelt gratitude to Prime Minister @NarendraModi, as well as to government and people of India for their warm welcome and generous hospitality. The UAE and India share civilizational ties that span centuries. Today, we move forward… — Hamdan bin Mohammed (@HamdanMohammed) April 10, 2025 Hamdan bin Mohammed concludes first official visit to India. His Highness commended the longstanding partnership between the two nations in the journey toward a prosperous future, saying that the relationship is rooted in mutual trust and respect. — Dubai Media Office (@DXBMediaOffice) April 10, 2025
Khaleej Times
10-04-2025
- Business
- Khaleej Times
How UAE-India trade corridor helps keep prices low, quality high for imports in Dubai
A trade agreement signed by UAE and India in 2022 has helped to keep the cost of imported Indian products low in Dubai, according to a local retailer. Nilesh Ved, Chairman and CEO of Apparel Group, said that the partnership helped reduce the cost of imports and likely increased sales of these products. The UAE-India Comprehensive Economic Partnership Agreement (CEPA) was signed in 2022 and opened a mutually-beneficial corridor which increased trade between the two countries by over 20.5 percent since then. 'Most of the items that we bring into the UAE, that is made in India, are free of duties,' he told Khaleej Times. 'Earlier the duty was 5 per cent but since the CEPA agreement, it went down to zero. This significantly lowers our costs, which means the retail price also comes down; it's a win-win situation.' The Apparel group, which was established in 1996, sells over 85 brands of products including bags, shoes, clothes and cookware. He added that since the agreement, the group has seen sales go up. 'Because the price is lower, naturally the increase in sales of Indian products is higher,' he said. 'The quality has also improved.' Nilesh was speaking on the sidelines of the Dubai-India Business Forum, which was held in Mumbai to coincide with the first India visit of Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. The forum brought together entrepreneurs and decision-makers of both markets together to explore mutually beneficial ventures. During the forum, Abdulla bin Touq Al Marri, UAE's Minister of Economy, pointed out that the trade between both countries hit above $65 billion in 2024 in non-oil trade. The CEPA agreement had aimed to take that figure to $100 billion by 2030 – a feat that many experts say will be achieved well ahead of time. According to Nilesh, Dubai offered a gateway for many Indian businesses to expand into the world. One of the Indian entrepreneurs that attended the forum, Juzar Potia, said that he was hoping to expand his STEM education venture, Duck Learning India, to Dubai. 'I met a lot of Dubai-based companies with whom I had fruitful discussions,' he said. 'Hopefully, with the support of the Dubai International Chambers, I will be able to expand my business into Dubai soon.' 'With over 200 nationalities living in the city, it is the perfect market for Indian business to test the waters,' Nilesh said. 'Whether they want to expand into Philippines or Spain or Egypt, they can test the product with these nationalities in Dubai and fine-tune their strategies before making a leap into that market.'
Dubai Eye
10-04-2025
- Business
- Dubai Eye
Dubai Chambers strengthens ties with India
News Home More from Business Wednesday, 9 April 2025 21:57 By ARN News Staff Dubai Chambers have organised a high-level business meeting in Mumbai with key officials and business leaders from both the UAE and India. The event was held in the presence of His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai and the UAE's Deputy Prime Minister and Defence Minister, who is on an official visit to India. During the meeting, Sultan bin Saeed Al Mansoori, Chairman of Dubai Chambers, announced the opening of their second representative office in India, located in Bengaluru. This new office aims to strengthen business ties with India, building on the success of the first office opened in Mumbai in 2018. UAE Minister of Economy Abdullah bin Touq Al Marri and India's Minister of Commerce and Industry Piyush Goyal both emphasized the growing economic partnership between the two countries. The opening of the Bengaluru office supports the UAE-India Comprehensive Economic Partnership Agreement and aims to further boost bilateral trade and investment. — Dubai Media Office (@DXBMediaOffice) Coming Up on Dubai Eye The Business Breakfast 6:00am - 10:00am The Business Breakfast is the day's must listen for the UAE's business leaders, and those who aspire to be. The Agenda 10:00am - 1:00pm Broadcasting every weekday, Georgia Tolley goes beyond the headlines to speak to government ministers, decision makers, analysts and local experts to find out how the news will impact those of us living in the UAE. UAE President Sheikh Mohamed Bin Zayed Al Nahyan's visit to the USA UAE President Sheikh Mohamed Bin Zayed Al Nahyan's visit to the US to boost economic and technology ties including AI. New iPhone Launch - Too Soon For Apple? Apple Inc. shares fell Monday after a closely followed analyst warned that demand for the firm's new iPhone 16 Pro model has been lower than expected. Is this a sign that the AI software just isn't ready? Working From Home or Hardly Working? Does working from home kill productivity or can it benefit staff by giving them more flexibility and a better work/life balance? On Dubai Eye Is There Sufficient House Supply In UAE Dubai's current population is more than double compared to almost twenty years ago, which now stands at 3.7 million. Lots of families are also moving to the UAE now. So what does it mean for the property market? Noon's First Female Delivery Driver Glory Ehirim Nkiruka is Noon's first ever female delivery driver. In her first ever interview, she explained why she loves her job, despite the heat!
