UAE/India debate: Trade and investment corridor booms

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The economic ties between the UAE and India have gone from strength to strength in recent years and are set to deepen further. The UAE not only offers India the promise of investment in its creaking infrastructure, but a compelling investment environment for Indian companies and a staging post for expansion. Conversely, Asia’s third largest economy offers Arab companies growth opportunities

Executive summary
• Over $75 billion of trade between the UAE and India last year – the highest on record
• The Bilateral Investment Promotion and Protection Agreement between the UAE and India will boost trade and investment flows
• The UAE offers attractive business and investment opportunities and a staging post for regional expansion
• Indian firms have greater access to funding and liquidity in the UAE than domestically
• UAE banks, and companies, are expanding in India, while Indian banks are seeking licences in the UAE
 • The UAE regulatory framework supports business but needs improvement
• India’s government faces big challenges to make it an attractive destination for foreign investment
Euromoney How important is the UAE and India’s economic relationship for your company, and more broadly how important is this relationship for both countries?

VK, KEC The UAE is a very important partner for us as a power, transmission and distribution company. We’ve been here for 20 years, having opened an office in Abu Dhabi in the early 1990s. Since then we have been here continuously, which is reasonably rare. Often you will find that companies come here, complete their projects and then walk away. But the fact that the UAE is a large country geographically, and has been growing continuously, fortunately means we have seen a continuous flow of projects coming to us as a result. Secondly, our presence in Abu Dhabi helps us to grow our business in other parts of the Middle East and North Africa, such as in Algeria, Libya and Tunisia, for example. And with the rules, regulations and taxation here in the UAE being supportive we have been able to establish a strong base for our business, using it as a regional hub for expansion. It also helps us to grow our operations globally.