Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, tells WAM that the Comprehensive Economic Partnership Agreement (CEPA) signed by the UAE and India will increase trade exchange by 120 percent to $100 billion in five years, compared to the current trade exchange amounting to $45 billion.
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CEPA will achieve growth in the national economy by 1.7 percent in 10 years with a value of $9 billion. It will increase exports by 1.5 percent, equivalent to $7 billion, and imports by 3.9 percent, equivalent to $14 billion, which will positively impact the Indian economy by nearly 0.7 percent and create around 140,000 new high-skilled job opportunities in the UAE.
WAM spoke to Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, on the details of the historic pact and its impact on the economies of both nations.
What is the size of the non-oil trade exchange between the UAE and India?
The size of the non-oil trade exchange between the UAE and India amounted to nearly $45 billion at the end of 2021, an increase of 60 percent compared to 2020, and 8 percent compared to 2019. India is the top trade partner for the UAE in terms of non-oil exports, as they amount to 14 percent of the total exports of the UAE to the world.
What are the most exchanged commodities between the two sides?
The primary exchange commodities include gold, diamonds, ornaments and jewellery, machinery, electrical appliances and their parts, petroleum oils, plastics and their products, and metals including iron, steel and aluminium.
India is among the 15 top exporters of food commodities globally and the UAE is among the top recipients of its exports from this commodity group, as it accounts for over 5 percent of its total exports to the world, after America and China.
India comes in second place in terms of the total UAE trade of food products, while India is among the top supplies of food products in the Emirati market, accounting for 10 percent of the UAE's food imports.
CEPA covers 11 service sectors and over 100 sub-sectors, which include business services (professional services, accounting, real estate, and advertising, among others), telecommunications, construction services, educational services, financial and insurance services, social and health services, travel and tourism services, entertainment, cultural and sports services and transport services.
CEPA is expected to contribute to accelerating non-oil trade between the two countries to amount to $100 billion in five years. ■