Lately, UAE and India have reached a currency trade agreement that will enable businesses in both countries to bypass the dollar and other foreign currencies and trade directly in dirhams or rupees, according to India’s ambassador to the UAE, Navdeep Suri. This ‘currency swap agreement’ between the two Central Banks means there is a saving for business communities on both sides as trade between the UAE and India climbs to new highs with an increase in consumer spending to significantly benefit from the exchange.
There were other agreements made during Prime Minister Narendra Modi’s two-day visit to Abu Dhabi and Dubai that have been finalized, such as an agreement to work together to combat and share intelligence on money laundering and terrorist financing. Then, there was the agreement between Indian PM Narendra Modi and Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi to increase bilateral trade by 60% over the next five years which will expand mutual trade and economic opportunities. This is an extraordinary partnership that will elevate the bilateral relations in the years ahead.
As the two countries build closer cooperation in ‘trade, commerce, even joint projects’ and make this relationship really special, it is clear the willingness to accelerate economic growth and maintain regional peace and stability, reports Gulf News.
Currently, India is UAE’s number one trading partner. For years, India has been one of the top export and import destinations of the United Arab Emirates. There are also several working Indians residing in the emirates, making them the largest immigrant community. Many are hired in the country’s workforce, but a great number also runs businesses in UAE. They constitute 42% of the total UAE population, according to the 2017 International Migration Report. Indians contribute to the largest number of migrants in the gulf with over 2.8 million Indians living there according to UN estimates between 1995 and 2015. “India and the UAE have collaborated to ensure blue-collar Indian workers hired to the UAE are offered the same wages and benefits promised to them back home” in labor contracts approved by the UAE Ministry of Human Resources and Emiratization, tells Gulf News.
Now the two countries look forward to a new era in bilateral ties in India-UAE trade and commerce.
Indian Prime Minister Narendra Modi mentioned that, during a visit to the UAE, reached out to the Abu Dhabi Investment Authority to forge a strategic partnership for its infrastructure sector to solve matters in defense and security affairs, and creating exciting new energy (to include oil reserves and a liquefied natural gas terminal) in the region that will meet India’s growing demand and turn the country’s ambitions into a reality. He also highlighted how India looks at UAE as their foremost trade and investment partner for national growth and development, and the many Indian-owned UAE businesses have a great market strategic importance.
The United Arab Emirates has operationalized a USD 75 billion (AED275.25bn) sovereign fund for India with one billion already been transferred to India’s National Infrastructure and Investment Fund to propel industrial growth and facilitate infrastructure building. This reflects UAE’s commitment to significantly improve trade and investment ties, said UAE Ambassador to India Ahmed Albanna.
Dubai’s largest bank, Emirates NBD, is working with India’s ICICI, the largest private sector bank by consolidated assets, on a pilot project to use blockchain technology for global remittances and trade finance across multiple banking and payment services, reports arabianbusiness.com.