Business leaders react to landmark UAE-India trade deal

• UAE-India CEPA may lift bilateral trade to $100bn in five years 

Abu Dhabi-UAE: – Business leaders from the UAE’s largest private sector companies across defence, technology, healthcare and manufacturing have lauded the country’s first bilateral trade agreement, which promises to unleash a new era of economic opportunity with India.

The UAE-India Comprehensive Economic Partnership Agreement (UAE-India CEPA) is a historic trade deal that will transform bilateral economic and investment ties, improve market access and unlock new opportunities in strategically important industries, such as aviation, agriculture, construction, renewables, petrochemicals and pharmaceuticals.

His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, Deputy Supreme Commander of the UAE Armed Forces and Chairman of the Executive Council, and Indian Prime Minister Narendra Modi witnessed the signing of the agreement on 18 February. The partnership is anticipated to increase bilateral non-oil trade to more than $100 billion within five years, creating enormous opportunities for businesses in both countries. It is also expected to create 140,000 highly skilled jobs in the UAE.

Leading businesses across the Emirates voiced their strong approval for the deal after it was signed in New Delhi by His Excellency Abdulla bin Touq, UAE Minister of Economy, and His Excellency Shri Piysuh Goyal, India’s Minister of Textiles, Commerce and Industry, Consumer Affairs, Food and Public Distribution. His Excellency Dr Thani bin Ahmed Al Zeyoudi also witnessed the signing of the agreement.

His Excellency Faisal Al Bannai, Executive Chairman, Board of Directors, EDGE Group, said: “As a major contributor to the economic growth of the UAE through advanced technology and manufacturing, EDGE applauds the recent signing of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, which remains a vitally important market and valued partner for the group. In this spirit of collaboration, we look forward to exploring further opportunities for the transfer of knowledge and the sharing of advanced capabilities. Building global partnerships is an essential component of EDGE’s overall vision, and this agreement serves as a stepping-stone for future commercial and strategic alliances, paving the way for further cooperation in R&D and for technological innovation in local industry, allowing us to also reinforce our support of the ‘Make in India’ strategy.”

Saud Abu Al Shawareb, Managing Director of Dubai Industrial City, added: “The UAE and India have nurtured a long-standing and thriving bilateral relationship that has benefitted the economic diversification and competitiveness of both countries. Strategic partnerships and trade have fostered a significant exchange of talent, knowledge and investment, and the UAE-India CEPA enhances our ties as both countries pursue innovation and technological advancement in the manufacturing industry. Dubai Industrial City has always welcomed global corporations, SMEs and ambitious start-ups from around the world to expand their operations with state-of-the-art infrastructure and unrivalled connectivity between the East and West. Indian manufacturers like Himalaya Wellness and Standard Carpets make up a valuable part of our community and are a testament to our robust relationship with the Indian market. I am confident that the new agreement will further boost investment in this sector and attract more Indian businesses to do business in Dubai.”

Yusuff Ali, Chairman of Lulu Group and Vice-Chairman of Abu Dhabi Chamber of Commerce, said: “It is truly a landmark and very decisive moment in the long-standing Indo-UAE trade relations as both countries ink the UAE-India CEPA. UAE & India are each other’s key trade partner with robust trade and investments in various sectors in both countries. No doubt with the signing of CEPA, many new avenues of collaborations will open, and this will benefit businesses from both countries and beyond as UAE is a key gateway to Middle East and Africa. The current bilateral trade volume of US$53bn is expected to double to $100 billion in five years. As UAE based business group with sizeable presence in India, especially in the retail and food processing sectors, we are hoping that our imports from India will see new levels of growth which will further strengthen the food security of UAE.”

Vikas Chadha, Chief Executive Officer, Jumbo Electronics Company, said: “At Jumbo Electronics, we fully endorse and welcome the completion of the CEPA deal. This is a forward-thinking agreement signed by two progressive governments in the UAE and India. It is the right step to further enhance already strong bilateral ties between the two countries. By reducing tariffs and implementing sector-specific changes, businesses and consumers in both countries will benefit. We also believe, with our current established infrastructure and presence in the GCC, this deal would also open multiple opportunities for Jumbo to partner with more Indian brands looking to expand into the region.”

Adeeb Ahamed, Managing Director, LuLu Financial Holdings, said: “The UAE and India have historically shared a close bond in several areas of trade and commerce. The synergy between these two great nations has grown rapidly in recent times and the signing of the Comprehensive Economic Partnership Agreement (CEPA) is a step forward in cementing this relationship. At a time when inclusive trade and easier market access are cornerstones of a robust economy, CEPA will definitely encourage the investor community, both regionally and globally, to ride on the potential of a robust UAE-India economic corridor.

“The services sector as we all know, contributes significantly to both the economies, and among it, the cross-border payments segment has grown in stature with the advent of technology and mobile solutions. The segment has benefitted greatly from the thrust on infrastructure development and robust processes, and CEPA is bound to create greater opportunities for growth and innovation. The timely signing of CEPA will also inspire young entrepreneurs from both countries to take advantage of the many avenues being opened for economic cooperation, and build meaningful payment solutions that make the lives of people easier. My best wishes to the leaders of both these great nations on this historic signing. May CEPA be a new chapter in the annals of economic cooperation between the UAE and India.”

PNC Menon, Founder and Chairman, Sobha Group, said: “The continuous efforts of the governments of the UAE and India to forge stronger bilateral trade relations founded on both countries’ historical ties are a welcome move for the Indian business community. With India as one of the UAE’s biggest partners in terms of trade and investments and with the UAE as India’s third largest trading partner, we are confident that the latest series of agreements between our two nations will further elevate the overall economic and trade relations between both nations. These new agreements will facilitate greater efficiency in trading, manufacturing, and services, as well as protect mutual interests, and thereby enhance business growth. Moreover, we perceive the outcomes of these agreements to trickle down to the creation of new jobs and greater opportunities, thereby enhancing social and economic welfare.”

Dr. Azad Moopen, Founder Chairman and Managing Director, Aster DM Healthcare, said: “I am delighted to see the strategic ties between UAE and India gaining momentum, and with the Comprehensive Economic Partnership Agreement (CEPA), many corridors for trade, investment, services and employment will open up reciprocally. The UAE has been a second home for over 3.4 million Indians and India’s largest trade partner for many years. The leaders of both countries share an amicable bond and this is just another step towards strengthening ties and the relationship between the two countries. With this agreement, we can expect the business between the two countries to increase exponentially. Many initiatives like the 100% business ownership, and long term residency like the Golden Visa among others have provided a huge encouragement for Indian investors to further expand their investments in the UAE. Trade agreements such as these encourage us to participate in cross-border investments which is beneficial for the citizens of both the countries.

“Aster DM Healthcare was born and brought up in the UAE and has spread to many countries in the last 35 years, especially to India. We are probably the only company which is listed in India with a large part of our operations outside. Aster has played a key role in strengthening the healthcare delivery model in UAE over the years with 8 hospitals, 210 pharmacies and 95 clinics. We also have significant presence in India with 14 hospitals, 90 pharmacies and 66 labs & patient experience centres spread across 5 South Indian states. We are increasing our presence in India by allocating more capital for growth there. The agreement will surely further boost our expansion plans both in UAE and India.”

Irfan Izhar, Chairperson, Visions Corporation, said: “The UAE-India CEPA will not only help in increasing trade between the two countries but will also strengthen their bilateral relationship. This is a great opportunity to collaborate and work together towards boosting both our economies. As a result of this landmark agreement business between both countries is expected to increase rapidly.”

As part of its Projects of the 50 initiative launched last year, the UAE embarked upon a program of enhancing bilateral trade relations with key partners around the world. The UAE-India CEPA is the first bilateral trade accord concluded by the UAE. It is part of a series of bold initiatives launched to build a stronger, more resilient economic future.

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