CEPA boosts UAE-India economic ties as trade surges 19.7% to $65bn

The UAE and India are developing closer economic and diplomatic ties as trade jumped almost 20 per cent to $65bn last year.

Dr. Thani bin Ahmed Al Zeyoudi, UAE Minister of Foreign Trade, met with the Indian Business Council in the UAE to explore new avenues for strengthening economic ties and private sector collaboration between the two countries.

The meeting builds on the Comprehensive Economic Partnership Agreement (CEPA), which entered into force in May 2022 and has been instrumental in driving bilateral trade and investment.

UAE-India trade

Al Zeyoudi underscored the importance of India as a trading partner, noting that non-oil trade between the UAE and India reached $65bn in 2024, reflecting robust growth of 19.7 per cent compared to the previous year.

He said: “India is an essential partner in the UAE’s trade landscape. Today’s discussions were centred on maximising the benefits of our CEPA to foster deeper collaboration between our vibrant private sectors.”

The CEPA with India was the first such agreement signed by the United Arab Emirates under its ambitious and ongoing foreign trade programme.

Since then, it has opened new opportunities across sectors including agricultural production, renewable energy, and logistics, while boosting private sector collaboration.

Reflecting on progress since the agreement was signed, Al Zeyoudi pointed to several joint initiatives launched in 2025:

• India-UAE Start-Up Series – helping entrepreneurs access each other’s markets
• Bharat Mart – a major complex in the United Arab Emirates that will enable Indian manufacturers and exporters to reach global markets
• Cross-border payments integration – work underway to improve efficiency and reduce barriers
• UAE-India CEPA Council – established to ensure both nations maximise the opportunities presented by CEPA

The CEPA has already delivered significant results, reducing trade barriers and enhancing investment flows between the two countries.

The agreement’s significant impact is evident in the sustained rise in bilateral trade, reinforcing the United Arab Emirates and India’s positions as vital partners in the global economy.