Expansion of Non-Oil Trade Between India and UAE... Over $100 Billion in 5 Years

[Asia Economy Reporter Park Byung-hee] The United Arab Emirates (UAE) and India plan to more than double the volume of non-oil trade over the next five years to at least $100 billion, Bloomberg reported on the 22nd (local time).

Tani Al Zeyoudi, UAE Minister of State for Foreign Trade, said at a meeting with India's Minister of Commerce and Industry Piyush Goyal in New Delhi that they would begin discussions aimed at signing an economic agreement to increase business activities, investment, and employment between the two countries.

Minister Goyal said, "Both countries aim to complete negotiations by December this year," adding, "We hope to sign an official agreement early next year."

India is the UAE's largest trading partner. Before the COVID-19 pandemic, the annual volume of non-oil trade was about $40 billion.

Minister Zeyoudi said that after the economic agreement is reached, trade volume could increase to $100 billion within five years, and Minister Goyal went further, saying the trade target could be raised.

In July, the UAE clashed head-on with Saudi Arabia, the dominant power in the Middle East, over whether to extend the OPEC Plus (OPEC+) production cut agreement. Amid conflicts with Saudi Arabia, the UAE has recently been actively working to expand trade.

The UAE government announced earlier this month that it would pursue comprehensive economic cooperation with countries with high growth potential, mainly in Asia and Africa. Last week, it also announced plans to invest $14 billion in the United Kingdom.

India, which has seen increased economic uncertainty due to the second wave of COVID-19 this year, is also pushing to expand trade as part of its economic recovery efforts.

As the need to expand trade has been raised mutually, the two countries, which have traditionally maintained friendly relations, are promoting trade expansion.

Indians are one of the largest groups among foreigners in the UAE. The funds that Indians earn in the UAE and remit back to their home country are a strong pillar of the Indian economy. Earlier this year, India also brokered a ceasefire agreement between Pakistan and itself, who are traditionally adversaries, through UAE mediation.

This content was produced with the assistance of AI translation services.