UAE And India Strengthen Economic Ties Through CEPA With Significant Trade Growth In 2024

Dr. Thani bin Ahmed Al Zeyoudi, the UAE's Minister of State for Foreign Trade, highlighted the strong commitment between the UAE and India to enhance their strategic partnership. This collaboration aligns with both nations' development goals, fostering sustainable economic growth and prosperity for their citizens.

The official visit by H.H. Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum to India marks a significant milestone as the two countries near the third anniversary of their Comprehensive Economic Partnership Agreement (CEPA). This agreement, effective from 1st May 2022, was the first under the UAE's CEPA programme and underscores the enduring ties between these nations.

Al Zeyoudi noted that CEPA has significantly boosted trade and investment between the UAE and India over three years. Non-oil trade surged by 20.5%, reaching over AED240 billion in 2024, compared to AED199.3 billion in 2023. This growth highlights vast opportunities for both countries in trade and investment.

India emerged as the leading destination for UAE’s non-oil exports in 2024, accounting for 13.5% of total non-oil exports. This represents a remarkable year-on-year increase of 75.2% compared to 2023, showcasing India's importance as a trading partner.

Both nations play crucial roles in each other's economies. India is the UAE’s second-largest global trading partner after China, while the UAE ranks as India's third-largest trading partner following China and the U.S. Additionally, India is the second-largest investor in the UAE with investments nearing US$10 billion by late 2022.

The UAE holds a significant position as India's seventh-largest global investor and top Arab investor with cumulative direct investments of around US$23 billion by late 2024. These figures reflect a robust economic relationship between the two countries.

Investment Milestones

The flow of UAE investments into India reached US$10.4 billion from April 2022 to December 2024, coinciding with CEPA's implementation. This substantial investment underscores the deepening economic ties facilitated by this agreement.

"The reciprocal visits by leaders from both countries reflect a shared vision," stated Al Zeyoudi to Emirates News Agency (WAM). He emphasized that these high-level engagements foster strategic collaboration, creating opportunities for deeper partnerships in trade and investment sectors.

The ongoing cooperation between the UAE and India continues to yield tangible benefits from CEPA, strengthening bilateral trade and investment flows further cementing their strategic partnership across various sectors.

With inputs from WAM