India, UAE strengthen ties with key investment treaty
ECONOMY & POLICY

India, UAE strengthen ties with key investment treaty

India and the United Arab Emirates (UAE) formalised a significant bilateral investment treaty and various agreements related to fintech and digital infrastructure projects. These developments were announced during Prime Minister Narendra Modi's two-day visit to the Gulf nation.

The bilateral investment treaty is anticipated to play a crucial role in fostering investments between the two countries, according to a statement from the Prime Minister's Office (PMO).

Speaking during his meeting with UAE President and Ruler of Abu Dhabi, Mohamed bin Zayed al Nahyan, Modi emphasised the treaty's long-term impact and its significance for G-20 nations.

The UAE stands as India's seventh-largest source of historical Foreign Direct Investment (FDI), totalling $16.67 billion. This constitutes 2.5% of India's overall inbound FDI from the country since 2000, as per data from the Department for Promotion of Industry and Internal Trade.

FDI from the UAE to India increased to $3.35 billion in FY23, rising from $1.03 billion in FY22, and reaching $1.1 billion in the first six months of the current financial year.

Earlier in February 2022, India and the UAE signed the Comprehensive Economic Partnership Agreement, effective from May 2022. The UAE has become India's second-largest export destination and third-largest trading partner, with total trade reaching $85 billion.

Additionally, both countries signed an Intergovernmental Framework Agreement on the India-Middle East Economic Corridor (IMEC). This initiative aims to enhance regional connectivity, proposing a sea-land connectivity project linking India with West Asia and Europe to counter China's Belt and Road Initiative.

Agreements were also inked on interlinking national instant payment platforms and domestic debit/credit cards, fostering connectivity between India's United Payment Interface and the UAE's Aani, as well as RuPay (India) and JAYWAN (UAE), respectively.

Furthermore, an MoU on cooperation in Digital Infrastructure Projects was established to facilitate a broad range of collaboration in the digital infrastructure sector, including investment cooperation and the exchange of technical knowledge, skills, and expertise.

This visit marks Modi's seventh to the UAE and the fifth meeting with al Nahyan in the past eight months. As part of the visit, Modi inaugurated the first Hindu mandir in Abu Dhabi, constructed by the BAPS Swaminarayan Sanstha.

The Prime Minister is set to speak as the Guest of Honour at the World Government Summit in Dubai, focusing on global dialogue about governmental processes, policies, and issues related to futurism and technology innovation. Additionally, he will visit Qatar on Wednesday, a surprise visit announced on Monday, following the return of seven Indian Navy personnel facing the death penalty on espionage charges in Qatar to New Delhi.

India and the United Arab Emirates (UAE) formalised a significant bilateral investment treaty and various agreements related to fintech and digital infrastructure projects. These developments were announced during Prime Minister Narendra Modi's two-day visit to the Gulf nation. The bilateral investment treaty is anticipated to play a crucial role in fostering investments between the two countries, according to a statement from the Prime Minister's Office (PMO). Speaking during his meeting with UAE President and Ruler of Abu Dhabi, Mohamed bin Zayed al Nahyan, Modi emphasised the treaty's long-term impact and its significance for G-20 nations. The UAE stands as India's seventh-largest source of historical Foreign Direct Investment (FDI), totalling $16.67 billion. This constitutes 2.5% of India's overall inbound FDI from the country since 2000, as per data from the Department for Promotion of Industry and Internal Trade. FDI from the UAE to India increased to $3.35 billion in FY23, rising from $1.03 billion in FY22, and reaching $1.1 billion in the first six months of the current financial year. Earlier in February 2022, India and the UAE signed the Comprehensive Economic Partnership Agreement, effective from May 2022. The UAE has become India's second-largest export destination and third-largest trading partner, with total trade reaching $85 billion. Additionally, both countries signed an Intergovernmental Framework Agreement on the India-Middle East Economic Corridor (IMEC). This initiative aims to enhance regional connectivity, proposing a sea-land connectivity project linking India with West Asia and Europe to counter China's Belt and Road Initiative. Agreements were also inked on interlinking national instant payment platforms and domestic debit/credit cards, fostering connectivity between India's United Payment Interface and the UAE's Aani, as well as RuPay (India) and JAYWAN (UAE), respectively. Furthermore, an MoU on cooperation in Digital Infrastructure Projects was established to facilitate a broad range of collaboration in the digital infrastructure sector, including investment cooperation and the exchange of technical knowledge, skills, and expertise. This visit marks Modi's seventh to the UAE and the fifth meeting with al Nahyan in the past eight months. As part of the visit, Modi inaugurated the first Hindu mandir in Abu Dhabi, constructed by the BAPS Swaminarayan Sanstha. The Prime Minister is set to speak as the Guest of Honour at the World Government Summit in Dubai, focusing on global dialogue about governmental processes, policies, and issues related to futurism and technology innovation. Additionally, he will visit Qatar on Wednesday, a surprise visit announced on Monday, following the return of seven Indian Navy personnel facing the death penalty on espionage charges in Qatar to New Delhi.

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