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DUBAI: An immediate increase in trade flows is a key objective of the UAE-India CEPA agreement – but two-way investment appears to be just as good going forward as Indian businesses signing on to the UAE’s proposed ‘Window to the World’ theme.
This is where the planned digital “green corridors” will come into play, with fast-track approvals for goods from India to be processed in Abu Dhabi and Dubai before being shipped to their final destination overseas. All processing will be done digitally, speeding up processes throughout the supply chain.
From the outset, the logistics industry was seen as the clear winner of the CEPA deal, as the UAE has a well-developed infrastructure and India is struggling to find new and better ways to move its goods around the world. This is where the “window” is created.
“Indian businesses can leverage on the infrastructure and the UAE’s strategic location between Asia, Europe and Africa to access global markets more effectively, making it an ideal logistics and supply chain hub,” said Piyush Malviya, Senior Director, International Operations and Head of MEA . Moglix, India-based B2B-focused e-commerce company. (In the UAE, the company operates two fulfillment centers in Abu Dhabi and Dubai.)
Moglix base in Dubai. The Indian company, which is involved in B2B e-commerce for industrial equipment, also has a factory in Abu Dhabi.
Credit: Virendra Saklani/Gulf News
“The inclusion of chemicals, auto parts and electronics categories in the CEPA agreement can significantly boost India’s manufacturing industry. And enhance the UAE’s status as a gateway to the world.”
Industry sources say this is exactly what CEPA does – more categories get preferential trade treatment. Import duties are also waived when shipped into this country.
The survey provides an opportunity for businesses to share their experiences, concerns and priorities directly with us, not only to influence ongoing negotiations, but also to inform adjustments to deals already in place
– Juma Alkait, UAE Ministry of Economy
A major Indian conglomerate is rumored to announce an investment in Dubai as early as next week in a major international expansion. It won’t be the only one, sources say, as global supply chains reshape themselves for the post-coronavirus global economy.
For India, it is also a matter of riding the wave of “time and place”. “As global production hubs seek to de-risk their supply chains, India is well-positioned to take advantage of altered global trade dynamics,” Malviya said.
“India is adapting its trade policy to take advantage of the increasingly prevalent China-plus-one model. Technology-intensive value chains—such as those of pharmaceutical formulations, capital goods, and auto parts—benefit from the country’s large pool of well-trained professionals. personnel.
“While it may be too early to determine whether Indian companies are maximizing logistics and supply chain options in the UAE, there are signs that this is becoming more common. subsidiaries operating in the UAE to take advantage of the favorable business environment and access to global markets.”
Adding services such as procurement technology, supply chain financing and 3PL (third-party logistics) in the supply chain is the key to CEPA, as it helps to simplify the entire supply chain ecosystem in cross-border trade between the two countries.
– Piyush Malviya of Moglix
new ministry investigation
On Thursday (May 5), the UAE Ministry of Economy launched a survey to solicit feedback from Emirati business owners, industrialists and entrepreneurs ahead of negotiations for more comprehensive economic partnership agreements in the UAE. “The survey will help determine the parameters of discussions with Chile, Vietnam, Ukraine, Kenya, Pakistan and Thailand,” the ministry said. “And open to all interested parties to ensure maximum benefit from the latest list of deals.”
The survey is divided into six sections covering areas such as current market access in target countries; trade and investment potential; trade barriers and the role of governments in promoting exports and investment.
Whether through smoother and more seamless access to export markets, or by creating the right environment for Emirati investors in partner countries, the Ministry of Commerce will use the responses to “ensure the best deals for UAE businesses”.
“We recognize that businesses face unique challenges and opportunities in different markets, and we need to ensure our trade agreements reflect these realities to ensure maximum returns for the private sector,” said Juma Alkait, assistant undersecretary for international trade affairs, in a statement. Ministry of Economic Affairs.
The UAE-India CEPA has strengthened investment in various fields and effectively promoted prosperity.
– Dr. Thumbay Moideen of the Thumbay Group
The agreement with India – which takes effect on May 1, 2022 – is the first CEPA signed by the UAE and has since been extended to alliances with countries including Turkey, Israel and Cambodia.
Dr Thumbay Moideen, founder and president of Thumbay Group, said the CEPA deal also builds on the existing strengths of the UAE and its businesses. In other words, it’s not just new inward investment by new entities.
“We have benefited tremendously from establishing collaborations to enhance health professional education,” Moideen said. “Our aim is for deeper cooperation in knowledge sharing and job creation, which will bring substantial long-term returns to countries.
“The development of India-UAE trade relations provides a broad ecosystem for businesses here to expand their positioning. Many industries have witnessed strong growth, including healthcare and education.”
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