Sheik Hamdan: UAE-India Bond Goes Beyond Business Partnership

UAE and India’s partnership goes well beyond their economic connections. Non-oil trade between the countries grew by 20.5% to reach Dhs240 billion in 2024, up from Dhs199.3 billion in 2023. Dubai now hosts more than 73,000 Indian businesses, and 16,623 new Indian companies registered with Dubai Chamber of Commerce last year.

The bilateral investments tell an equally impressive story. Indian businesses have invested Dhs15 billion in Dubai during the last five years, while Dubai’s investments in India have reached Dhs17.2 billion. The UAE-India Comprehensive Economic Partnership Agreement (CEPA) signed in 2022 demonstrates both nations’ steadfast dedication to strengthen their economic alliance. This agreement aims to achieve $100 billion in non-oil trade by 2030.

Sheik Hamdan Strengthens Historic UAE-India Economic Ties

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Crown Prince of Dubai, Sheik Hamdan bin Mohammed bin Rashid Al Maktoum, made his first official visit to India, which has taken the partnership between both nations to new heights. His two-day visit on April 8-9, 2025, included a meeting with Prime Minister Narendra Modi where he presented a replica of his grandfather Sheik Rashid’s bisht – a gesture that symbolizes their generations-old friendship.

The visit yielded remarkable results through several milestone agreements. Sheik Hamdan met with Minister of Commerce and Industry Piyush Goyal in Mumbai to discuss the Comprehensive Economic Partnership Agreement (CEPA) that has boosted bilateral trade. The agreement, now three years old since May 1, 2022, has eliminated tariffs on more than 80% of products and created an open environment for cross-border trade.

Sheik Hamdan’s tour of the Bombay Stock Exchange highlighted UAE’s commitment to strengthen cooperation between its financial markets and global counterparts. This move supports Dubai’s Economic Agenda D33, which envisions the emirate becoming one of the world’s top four global financial centers.

The visit brought exciting news for the 4.3 million Indians living in the UAE with the announcement of first overseas campuses of the Indian Institute of Management Ahmedabad and the Indian Institute of Foreign Trade in Dubai. Dubai Chambers also plans to open its second representative office in India’s tech hub Bengaluru.

Both nations continue to build stronger ties through the Virtual Trade Corridor and the MAITRI interface that help streamline trade and support bilateral commerce. This is a big deal as it means that bilateral trade will reach $95 billion, moving closer to the target of $100 billion in non-oil trade before 2030.

The UAE stands as India’s third-largest trading partner, with investments focused on transportation, warehousing, real estate, and information technology services.

UAE Invests $3 Billion in Gujarat Through DP World

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DP World, Dubai’s multinational logistics company, has strengthened its ties with India’s growing economy through multiple Memorandums of Understanding (MoUs) worth AED 11.02 billion (approximately $3 billion) with Gujarat’s Government. These agreements expand UAE’s investment footprint in India’s western state and create an ambitious development roadmap for new ports, terminals, and economic zones.

The agreements detail plans to develop multi-purpose deep-draft ports in South Gujarat and along the western coast towards Kutch. The MoUs also outline plans for Special Economic Zones in Jamnagar and Kutch, with Gati Shakti Cargo Terminals and Private Freight Stations at key locations like Dahej, Vadodara, Rajkot, Bedi, and Morbi. DP World has also signed a separate MoU with Gujarat Maritime Board to explore opportunities for additional port development along Gujarat’s coastline.

“We are very committed to India, where we have been operating for nearly 20 years. In that time, we invested almost AED 9.18 billion, and we will invest more in the next three years in these projects,” stated Sultan Ahmed bin Sulayem, DP World Group’s Chairman and CEO. His statement highlights UAE’s long-term vision to support India’s fast-growing infrastructure sector.

DP World’s current investments in Gujarat span across several projects. The company runs a container terminal in Mundra and rail-connected private freight terminals at Ahmedabad and Hazira. Cold storage facilities operate in Surat and Bharuch, alongside freight forwarding offices in Ahmedabad and Gandhidham. The company secured a AED 1872.69 million concession agreement with the Deendayal Port Authority in August 2023 to develop a new 2.19 million TEU per year mega-container terminal at Tuna-Tekra in Kandla.

This major investment supports India’s infrastructure development agenda, which now has over 13,000 projects valued at more than AED 8.45 trillion through the National Infrastructure Pipeline. These strategic collaborations show the strong economic bonds between UAE and India, especially in key infrastructure sectors that will boost bilateral trade in coming years.

Both Nations Target $100 Billion in Non-Oil Trade by 2030

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The UAE and India signed their Comprehensive Economic Partnership Agreement (CEPA) in February 2022. This agreement has pushed bilateral trade to record levels. Both nations are now well-positioned to reach their bold target of AED 367.19 billion ($100 billion) in non-oil trade by 2030. Bilateral merchandise trade has jumped by nearly 15% since CEPA took effect on May 1, 2022, which proves the agreement’s success.

Recent data shows impressive growth in total bilateral commerce from AED 159.00 billion in FY 2020-21 to AED 295.59 billion in the first 10 months of this fiscal year. Non-oil trade, which is crucial to UAE’s economic diversification strategy, hit AED 100.61 billion in FY 2023-24. India’s exports to the UAE have grown at a remarkable 25.6% yearly rate since CEPA began.

This partnership’s success shows in how trade has diversified quickly. Indian exporters have used preferential tariffs under CEPA through 240,000 Certificates of Origin, which enabled AED 72.96 billion in exports. Commerce Minister Piyush Goyal stated confidently that “the goal to take non-oil trade to USD 100 billion is within reach”.

These sectors lead the exceptional growth:

• Traditional strengths: gems, jewelry, and refined petroleum products
• Emerging sectors: electrical machinery, industrial boilers, and organic chemicals
• Technology: smartphone exports to the UAE reached AED 9.44 billion this fiscal year

CEPA brings many advantages. It cuts or eliminates tariffs on over 80% of products, makes customs procedures easier, and opens market access across 11 service sectors and more than 100 sub-sectors. UAE’s broader CEPA strategy has added AED 135 billion to non-oil trade with partner countries, a 42% yearly increase.

Both countries have set up joint committees to tackle challenges from customs procedures to rules of origin. They’ve also signed agreements to speed up growth in digital infrastructure, AI, and emerging technologies. Their partnership serves as a model for successful international cooperation in today’s increasingly protectionist global environment. This collaboration continues to grow through digital trade and green energy initiatives.

Sheik Hamdan‘s historic visit to India has transformed the UAE-India relationship beyond economic cooperation. The remarkable growth in non-oil trade to Dhs240 billion shows the success of strategic collaborations between both nations. Educational institutions and technological partnerships have deepened this relationship, while DP World’s AED 11.02 billion investment in Gujarat reflects strong confidence in India’s infrastructure development.

The UAE-India CEPA agreement serves as the life-blood of this partnership that drives bilateral trade toward the $100 billion target. Indian businesses thrive in Dubai, with over 73,000 companies operating in the emirate. Both nations have shown their steadfast dedication to optimized trade processes through initiatives like the Virtual Trade Corridor and MAITRI interface.

This partnership showcases international cooperation at its best, built on mutual respect and a shared vision for growth. UAE and India’s relationship has evolved to cover traditional trade and state-of-the-art collaboration. This dynamic partnership sets new benchmarks for bilateral relations and promises sustained growth and prosperity for both nations in the coming years.