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collaboration, said Faizal Kottikollon, chairman of the UAE India Business Council’s UAE Chapter
(UIBC-UC).

31 Dec, 2023
Abu Dhabi Sheikh Zayed Festival fireworks

The transformative impact of Cepa took centrestage at a high-profile event hosted by Satish Kumar
Sivan, consul-general of India to Dubai and Northern Emirates, marking the second anniversary of
the UIBC-UC and the third year of the trade pact. Attended by UAE Minister of State for Foreign
Trade Dr Thani bin Ahmed Al Zeyoudi, Indian Ambassador Sunjay Sudhir, and industry leaders, the
gathering underscored the agreement’s role as a cornerstone of one of the world’s fastest-growing
economic partnerships.

In his keynote address, Dr Al Zeyoudi hailed CEPA as a gamechanger, emphasising its role in
unlocking new trade and investment avenues. He noted that non-oil trade — a critical pillar of the
UAE’s diversification strategy — has been turbocharged by the deal. The UAE’s non-oil foreign trade
hit a record Dh3 trillion ($816.7 billion) in 2023, up 14.6 per cent year-on-year, far outpacing global
trade growth of just 2.0 per cent.

Ambassador Sudhir highlighted the human dimension of the partnership, stressing that “investing
in talent and innovation is the bedrock of sustainable growth.” His remarks dovetailed with the
launch of new research initiatives aimed at guiding policymakers and businesses in navigating the
evolving trade landscape.
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Cepa’s success lies in its dramatic diversification of trade flows. India’s non-oil exports to the UAE
reached $27.4 billion in FY 2023–24, growing at an annualised rate of 25.6 per cent since the deal
took effect. While traditional sectors like gems, jewelry, and refined petroleum products remain
vital, cutting-edge industries are now driving growth. Exports of electrical machinery, industrial
boilers, and organic chemicals have surged, with smartphones emerging as an unexpected star —
shipments to the UAE hit $2.57 billion this fiscal year.

“These numbers aren’t just statistics; they represent jobs, innovation, and shared prosperity,” said
Kottikollon. “We’re witnessing a fundamental shift in how our economies interact.”

The UAE’s broader Cepa strategy — it has signed similar deals with several nations — has added
Dh135 billion to non-oil trade with partner countries, up 42 per cent annually. With Dh3 trillion in
total foreign trade already achieved for 2023, the emirates has crossed 75 per cent of its ambitious
Dh4 trillion 2031 target seven years early.

Operational efficiency has been critical to the pact’s success. Indian exporters have leveraged
preferential tariffs under Cepa through 240,000 Certificates of Origin, facilitating $19.87 billion in
exports. To address bottlenecks, both nations established a joint committee, which has met twice
at the senior official level, most recently in October 2023. Technical teams have resolved issues
ranging from customs procedures to rules of origin, while subcommittees now oversee services
trade and digital facilitation.

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