The UAE-India diplomatic relations began in 1972, and ever since, the scope of their bilateral ties has expanded, and the level of engagement has increased significantly. During this period, both countries’ investment relations steadily grew until 2015, where Modi’s visit to the UAE led to a slew of agreements. reinforced by the visit of Crown Prince Sheik Mohammed bin Zayad Al Nahyan to New Delhi the following year on the occasion of the 68th Republic Day Celebration.
Recent Investment Relations
The recent developments in India-UAE relations, including their steadily growing investment relations, from their shared economic visions and compatible regional geopolitical outlooks. UAE’s national priorities and economic aspirations are clearly outlined in its “Vision 2021”, which was promulgated in 2010. The document maps six priority areas that are focused on attaining UAE’s development objectives. They include a cohesive society with its distinct identity, public safety, sustainable environment, and infrastructure with world-class healthcare and education system to transform the country into a competitive knowledge economy for a specified outcome of peace, security and prosperity with dignity.
The Modi’s administration has presented several initiatives to strengthen ties across multiple domains with the countries in West Asia and the Middle East. These initiatives are most evident in areas of investment, advanced technology, knowledge economy and integrating Gulf-Indian Ocean Security.
According to a renowned investment company in Dubai, among India’s investor relations with other countries, UAE plays a pivotal role in achieving Prime Minister Narendra Modi’s vision of making India a USD 5 trillion economy by 2025. UAE is not just a major trade partner but also a valuable source of FDIs in India. The Emirates investments have topped $9 billion, making it the 10th-largest source of FDI in India.
Reasons Promoting Investment Ties
Officials and renowned business leaders in the UAE continue to see great untapped investment potential and a huge appetite to invest in India. The UAE-India High-Level Task Force on Investment is the key forum to promote economic ties and accelerate investment engagement between the two countries.
The Comprehensive Strategic Partnership signed in 2017 between India and UAE led to the Task Force acquiring new significance in facilitating investments between the two countries by addressing the issues of mutual concerns based on shared vision and trust. The Fast Track Mechanism and the special UAE PLUS desk and have played critical roles in facilitating investments between UAE and India and sustainable investment planning.
After its establishment in 2015, the UAE-India Business Council introduced different measures to facilitate an economic synergy to create a better investment environment. In 2019, also issued a joint statement about introducing a single window for all Emirati investments alongside a fast-track process for UAE companies seeking to invest in India.
On their end, the UAE, which is constantly searching for potentially lucrative destinations for Sovereign Wealth Fund (SWF) investments, has picked India as one of them. In 2020 June, Mubadala (an Emirates’ SWF) invested $1.2 billion in Indian telecom and digital services firm Jio Platforms. Besides that, a leading investment group in Dubai also comprehends that Abu Dhabi Investment Authority (ADIA), the United Arab Emirates’ biggest sovereign wealth fund, is said to see India (after China) as key growth drivers and targets when it comes to outward investment.; which can be a key reason that promotes UAE-India investment relations.
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