1. India and the UAE will sign a Bilateral Investment Treaty (BIT) during PM Modi’s visit to Abu Dhabi and Dubai on February 13-14.
2. The UAE ranks as the third-largest source of Foreign Direct Investment (FDI) into India.
3. It is also the seventh-largest trade partner of India.
New Delhi, Feb 03: India and the UAE are set to strengthen their economic ties with the signing of a Bilateral Investment Treaty (BIT) during Prime Minister Narendra Modi’s upcoming visit to Abu Dhabi and Dubai on February 13-14.
The UAE is the third-largest source of Foreign Direct Investment (FDI) into India and the seventh-largest trade partner.
Despite the Modi government keeping details under wraps, it is expected that the visit will mark a significant milestone, as India already has a comprehensive economic partnership agreement with Abu Dhabi since February 2022.
The BIT, approved by the Modi cabinet on February 1, makes the UAE the only country with which India has both a Comprehensive Economic Partnership Agreement (CEPA) and a BIT. Notably, countries like South Korea, Japan, and Singapore have a CEPA with India but lack a BIT.
The visit is expected to include several key items on PM Modi’s agenda, such as the inauguration of the BAPS Hindu Mandir in Abu Dhabi, the opening of a Bharat Mart for Indian Micro, Small, and Medium Enterprises (MSMEs) in Dubai, and the Prime Minister’s role as the keynote speaker at the government summit in Dubai.
PM Modi is also scheduled to engage separately with Sheikh Rashid A Maktoum in Dubai, in addition to bilateral talks with President Mohammed bin Zayed Al Nahyan (MBZ).
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The close relationship between PM Modi and President MBZ has been evident, with the UAE ruler speaking at the Vibrant Gujarat event earlier this year, a rare occurrence as he seldom addresses global events.
India has been purchasing crude from the UAE in the local currency, and a recent agreement was signed by GAIL to buy 0.5 million metric tons of natural gas from the Emirates.
The bilateral investment treaty is expected to facilitate investments from UAE sovereign wealth funds, including the Abu Dhabi Investment Authority (ADIA) and the Mubadala Investment Fund.
Both India and the UAE play crucial roles in the Middle-East Economic Corridor project, linking Mundra Port in Gujarat to Fujairah Port in the UAE via sea, then connecting to Saudi Arabia and Jordan by railroad, and finally extending to Europe.
This new trade route is seen as a potential rival to China’s Belt and Road Initiative and the North-South corridor via Iran.
