Trade between the UAE and India is rapidly growing, topping over Dh216 billion within a year
The relationship and various political, social and economic links between the UAE and India have resulted in the trade between the two countries to rapidly grow significantly over the past two decades. During the fiscal year 2014-2015, the bilateral exchange was more than Dh216 billion, with UAE exports worth of around Dh 94 billion enabling India to maintain their place as being one of the UAE’s top trading partners whereas Indian exports are worth of around Dh122 billion earning UAE its title as being the largest market for Indian products in the Middle East. The products being exported by both parties mainly consisted of oil and petroleum.
In September 2015 the two nations consented to build and expand the bilateral trade by 60% through the next five years. This agreement would also support the UAE-India Infrastructure Investment Fund. The potential investment commitment is aimed to reach a target of $75 billion.
Some of the examples of both the nations investing in one another’s countries are:
As UAE is a major OPEC crude producer, it is the key oil supplier to India. India is known the fourth largest crude consumer in the world.
According to the UAE Minister of Economy Sultan Al Mansouri, as India is importing oil from the UAE, the emirate is confident in ensuring that all the demand for oil will be met.
Currently Abu Dhabi is providing at least nine per cent of India’s energy requirements and the supplies are anticipated to increase in the near future.
Dubai is also trying to establish itself and grow its presence in India. One of its growing presences in India is the Dubai Ports (DP) World which operates at Nhava Sheva International Container Terminal Private Limited, Chennai Container Terminal Private Limited and India Gateway Terminal at Cochin. Dubai Ports World developed and operated its first international Container Trans-shipment Terminal in Vallarpadam, India.
Jebel Ali Free zone area is home to more than 800 leading Indian companies making India the largest investor in in Dubai’s free trade zone in Jebel Ali. This has played a major role in strengthening the trade relations between the two nations making India, UAE’s largest trading partner.
In order to increase and offer more opportunities to Indian investors, UAE as well as other Middle East regions are investing on establishing ways in which they can diversify their economies in order to stop being so reliant on oil and offer more sustainable economic framework that will support many non-oil business activities and increase trade further more.