Exclusive: India and UAE have strong economic partnership, says UAE Minister Al Sayegh 

In an exclusive interview to WION, Minister of State of the UAE in the Foreign Ministry, Ahmed Al Sayegh, has highlighted the burgeoning ties between India and the UAE. Their partnership, he emphasised, was not merely symbolic but deeply rooted in economic synergy. “India and the UAE have a strong economic partnership,” Minister Al Sayegh stated, “with extensive collaborations across sectors like energy, trade, technology, and infrastructure development.”

The Minister went on to underline the remarkable growth in non-oil trade and investments between the two nations, illustrating the tangible benefits of their relationship. Speaking to our correspondent Sidhant Sibal he pointed to “notable increases in non-oil trade” even as “investment relations have thrived, with substantial investments flowing in both directions and spanning various key sectors. These developments reflect the strong economic cooperation and shared interests between the two countries.”

On India Middle East Europe connectivity project, the minister revealed that the UAE is actively participating in the project, an endeavour designed to export electricity and clean hydrogen to enhance regional supply chains while reducing greenhouse gas emissions.

Furthermore, the Minister discussed the ambitious I2U2 project, which aims to strengthen economic cooperation across various sectors, emphasising, “These collaborative efforts are aimed at reducing carbon emissions, advancing healthcare, and promoting green technologies, contributing to sustainable development and prosperity.”

Full interview

WION: How would you characterise India-UAE relations?

Ahmed Al Sayegh: The United Arab Emirates and the Republic of India have long-established strong and robust strategic relations, rooted in cultural and economic ties that have developed over many years. The signing of the Comprehensive Economic Partnership Agreement between India and the UAE in February 2022 signified a deepening economic relationship, with the CEPA aiming to boost trade and investment between the two nations by reducing trade barriers and fostering economic cooperation. India and the UAE have a strong economic partnership, with the UAE being one of India’s significant trading partners in the Gulf region. The two countries have extensive economic collaborations in sectors such as energy, trade, technology, and infrastructure development. Furthermore, both India and the UAE are actively engaged in international forums such as the G20 and BRICS. Their participation in these groups highlights their growing roles on the global stage and their commitment to addressing pressing global issues collectively. These forums provide platforms for dialogue and cooperation on various global challenges, including economic stability and development.

WION:  In terms of investment and trade relations, how has the relationship picked up, especially since the signing of the trade pact?

Ahmed Al Sayegh: The UAE and India have experienced significant growth in trade relations, with notable increases in non-oil trade. Moreover, their investment relations have thrived, with substantial investments flowing in both directions and spanning various key sectors. These developments reflect the strong economic cooperation and shared interests between the two countries. More than one year on from its implementation, CEPA is increasingly emerging as the model for an effective and mutually beneficial economic partnership. By removing or reducing tariffs on 80 per cent of goods and eliminating unnecessary barriers to trade the UAE and India are benefitting from mutual strengths and ushering in a new era of dynamic, sustainable growth. The total non-oil trade between both countries experienced a notable 9.9 percent increase, rising from USD 44.8 billion in 2021 to USD 49.2 billion in 2022. This growth is primarily attributed to substantial increases in UAE imports, which surged by an impressive 26.4 percent, going from USD 20.8 billion in 2021 to USD 26.3 billion in 2022. Additionally, UAE re-exports demonstrated healthy growth, rising by 10.3 percent from USD 11.48 billion to USD 12.6 billion during the same period.   In terms of investment relations, UAE investment flows into India have been substantial, amounting to approximately USD 36.6 billion between 2003 and 2022. Simultaneously, Indian investments in the UAE also reached a substantial figure of around USD 30.5 billion during the same period. These investments have been diverse, spanning various sectors such as communications, software, and IT services, real estate, consumer products, automotive industry, renewable energy, metals, hotels, and tourism. These figures underscore the mutual economic interests and commitments of both nations, contributing to the strengthening of economic ties.

WION: India invited UAE to participate at the G20 summit, how do you see that as?

Ahmed Al Sayegh: The UAE’s participation in the G20 reflects the country’s steadfast commitment to multilateral cooperation and international priorities across all sectors. In this regard, the UAE is dedicated to supporting the global agenda while forging partnerships that will benefit the international community and future generations. The UAE commended the endeavors by the Indian Presidency describing it as the most ambitious in the history of the G20. Moreover, the country welcomed the efforts of the participating countries within the G20 meetings, their cooperation, and their commitment to working together to shape a brighter future through constructive international collaboration in the face of pressing challenges. Throughout the UAE’s engagements with the G20, including its participation as a guest country in France in 2011, Saudi Arabia in 2020, Indonesia in 2022, and now with India in 2023, the country has consistently demonstrated its commitment to aligning with the priorities of the G20. These commitments have encompassed a broad spectrum of crucial topics, including post-COVID-19 recovery, climate change mitigation, energy transition, disaster risk reduction, debt risk management, and the attainment of sustainable development goals.

WION: How does UAE see the India Middle East Europe connectivity project since it is part of it? any details as to how it will work, planned route?

Ahmed Al Sayegh: One of the G20 initiatives, the UAE’s participation in the India-Middle East-Europe Economic Corridor (IMEC) project underscores its commitment to enhancing international partnerships and contributing to a sustainable future. As the host of the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP28) in November, the UAE recognizes the importance of initiatives such as IMEC. IMEC seeks to stimulate economic development by promoting economic connectivity and integration between regions, aligning perfectly with the UAE’s foreign policy objectives of supporting economic prosperity and fostering strong international partnerships through trade, industry, and investment. As part of this project, participants, including the UAE, will explore the possibility of exporting electricity and clean hydrogen to enhance regional supply chains, contributing to efforts aimed at reducing greenhouse gas emissions and integrating environmental conservation considerations.

WION: How has the I2U2 group been doing, what next for the grouping?

Ahmed Al Sayegh: The UAE remains steadfast in its commitment to working closely and constructively with its partners in the I2U2 Initiative, which includes Israel, India, and the United States. The launch of the I2U2 website, which was recently announced on the sidelines of the 78th session of the United Nations General Assembly in New York, stands as a testament to this commitment and marks an exciting step forward in the journey of economic cooperation among these nations. The platform will serve as a hub for attracting new investment projects under the group’s umbrella, empowering businesses and investors to propose innovative projects, fostering collaboration and economic growth.

The overarching goal of the I2U2 Group is to strengthen economic cooperation among its member states across a wide spectrum of sectors, including food security, water, energy, space, transportation, health, and technology. Joint projects are set to be implemented through partnerships forged within the business sectors of the member countries. These collaborative efforts are aimed at reducing carbon emissions, advancing healthcare, and promoting green technologies, contributing to sustainable development and prosperity.

The UAE is fully committed to its membership in the group and its initiatives, underscoring the vision of the UAE’s wise leadership, which places a strong emphasis on building bilateral and multilateral partnerships to foster peace and security for all. The efforts of the I2U2 Group align with the shared objective of enhancing stability and prosperity for the peoples of the region and beyond.

WION: Role played by the Indian diaspora in connecting the 2 countries. UAE hosts the largest number of Indians outside of India.

Ahmed Al Sayegh: There is a substantial Indian expatriate community in the UAE, contributing significantly to the socio-economic and cultural fabric of the country. The people-to-people ties are strong and play a vital role in fostering goodwill and understanding between the nations, a further indication of the close ties across a multitude of areas. In addition, the Indian diaspora plays a significant role in the country’s economic development. Many Indians are employed in diverse sectors, including healthcare, education, technology, and finance, contributing to the UAE’s economic growth through their expertise, labour, and investments. The UAE acknowledges and values the diverse contributions of the Indian diaspora to its society and economy, recognising them as an integral part of the country’s growth and development.

WION: UAE will host the Conference of the Parties (COP 28), your expectations from India and do you see attendance of PM Modi?

Ahmed Al Sayegh: COP28 UAE carries significant expectations and ambitions to address the urgent global challenge of climate change. The UAE envisions this event as a pivotal moment in the world’s efforts to combat climate change and is dedicated to catalyzing transformative and accelerated climate action. COP28’s Presidency is hoping that all participants will actively engage with the conference, and are confident of seeing high-level representation from all invited countries. COP28 UAE is expected to be a groundbreaking conference that not only underscores the urgency of climate action but also emphasizes the need for collaboration, inclusivity, and innovative solutions. The Presidency is fully committed to working with the global community to deliver unprecedented and impactful results, making COP28 a conference of action and a turning point in the fight against climate change.

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