India-UAE Growth Story To Be Driven By Partnerships In Fintech, Aviation, Clean Energy: Ahmed Aljneibi

Partnerships in sectors such as aviation, fintech, edtech, health-tech and clean energy tech will drive the UAE and India's growth story in the coming years, CEPA Council Director Ahmed Aljneibi said on Tuesday.

The UAE-India CEPA Council was launched on the sidelines of the Vibrant Gujarat Summit in January. The two countries implemented the Comprehensive Economic Partnership Agreement in May 2022.

He also said there is a huge potential to improve air transportation and air cargo links between the two nations.

"Partnerships in fintech, edtech, health-tech and clean energy tech will undoubtedly drive the next chapter of the UAE and India's shared growth story,' Aljneibi said, adding that leading startup hubs with deep technology prowess, the two countries" digital economies are also gaining tremendously from the CEPA.

Indian firms are leveraging UAE's 5G infrastructure and logistics networks to offer digital solutions across the region, he added.

The UAE is India's third-largest trading partner behind China and the U.S., respectively. Trade between the UAE and India increased from $72.9 billion to $84.5 billion between 2021-2022 and 2022-2023, registering an increase of 16%.

He said that with improved air, sea and digital connectivity between the two countries, trade relations can achieve even greater heights.

"In particular, there remains great potential to improve air transportation and air cargo links between the two nations. For example, bilateral seat capacity arrangements between the airlines of UAE and India are relatively low, with the partnership remaining underserved in this domain," Aljneibi said.

He added that the capacity (seat sharing) is currently limited to around 1,34,000 passengers per week, while for cargo, it is 4,000 tonnes per week.

"With passenger and cargo routes straining at capacity, a visionary approach that builds upon the spirit of the CEPA, which fully unlocks and liberalises bilateral aviation partnerships would have a massive multiplier effect on the UAE-India economic relationship and serve as a win-win outcome to UAE and Indian consumers and business communities alike," he said.

He added that it is essential that both UAE and Indian aviation carriers are able to fully benefit from the dynamic strategic partnership that has emerged between the UAE and India since the signing of the CEPA and are able to expand connectivity in a manner that truly benefits this relationship.

"Separately, the UICC sees significant untapped potential in the role Indian MSMEs, particularly those situated in secondary Indian cities, can play in catalysing the bilateral economic partnership," he said, adding that the council's immediate focus is to support smaller companies seeking to internationalise.

In this regard, the UICC aims to enhance the role of startups, women entrepreneurs, and Micro, Small and Medium Enterprises involved in key strategic sectors, including agri-tech, green energy, medical and life sciences, and education, among other areas, the director said.

Over the next 12 months, the UICC will be undertaking an ambitious calendar of events throughout India, including a business round-table in Jaipur to be held in partnership with the Confederation of Indian Industries on April 24.

It is aimed at ensuring Indian businesses are apprised of the benefits of the CEPA and the UAE-India strategic partnership, more broadly.

"The UAE is a major global logistics hub, with a significant share of its international re-exports being routed to Africa and the Middle East. Therefore, the CEPA, through the enhanced access it provides to Indian companies trading with the UAE market, provides a carry-on effect in terms of assisting Indian exporters to gain easier links to key African and Middle East markets," he said.

Further, he said that the UAE is Africa's fourth largest global investor, making it the preeminent partner for Indian companies seeking to also invest in this strategically vital region.

"Just as Indian companies have chosen to establish operations in the UAE to support their global ambitions, so to have African companies. Therefore, the UAE should also be viewed as the location of choice for Indian companies seeking to develop greater cooperation with African counterparts across all sectors," he said.

He said that one of the most exciting projects that will further support Indian companies seeking to unlock export ties with Africa and the Middle East is the development of Bharat Mart in Dubai's Jebel Ali Free Zone.