India and the United Arab Emirates (UAE) are working towards finalizing a rupee-dirham arrangement for trade, according to UAE ambassador Abdulnasser Jamal Alshaali. This arrangement will help build on the free trade agreement signed by the two countries last year, and will further enhance economic and trade ties between them. The envoy also mentioned that the UAE is keen on revisiting the arrangement for flights to India and introducing flights to more Indian destinations to bring down airfare.
In an interview, Alshaali revealed that the two countries are engaged in technical discussions to finalize the rupee-dirham arrangement for trade. This move will benefit both countries as it will facilitate trade between them, make transactions more convenient, and reduce exchange rate risks. It will also promote the use of local currencies, which can help reduce the dependence on foreign currencies like the US dollar.
The envoy also highlighted the UAE’s role in addressing tensions between India and Pakistan in the past, but stated that any future role in this regard would be up to both countries. The UAE has played a crucial role in the peace process in the region and continues to work towards promoting stability in the area.
Alshaali further mentioned that the UAE is participating in the G20 as a guest country for the second year in a row. The lessons learned from previous participations have helped the country better organize itself internally to manage such participation. The UAE was invited as a guest country in 2011 when it was chairing the GCC, and again in 2020 when Saudi Arabia was chairing the GCC. In 2021, Indonesia chaired the G20, and India invited the UAE as a guest country. This experience has given the UAE better momentum internally in terms of who is in charge of what, the two separate tracks, the working groups, high-level participation, and so on.
The political relationship between India and the UAE is excellent, as evident from the frequent visits by ministers from both countries. The two countries are also working on expanding economic and trade ties, which will help to build a strong foundation for the future. For example, Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi and Minister of State Ahmed bin Ali Al Sayegh visited the Uttar Pradesh Investor Summit, while Minister Thani went to Bangalore to inaugurate the Ducab Grpoup’s office. Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan visited India last November, and the head of the Federal National Council is expected to visit next month.
India and the UAE are working towards enhancing their trade and economic ties by finalizing a rupee-dirham arrangement for trade. The two countries have excellent political relations, and both are committed to expanding their economic and trade cooperation in the coming years. The UAE’s participation in the G20 as a guest country has helped it better organize itself internally, and its experience has been beneficial in terms of working groups, high-level participation, and two separate tracks. The future looks promising for India-UAE relations, and this enhanced cooperation will undoubtedly benefit both nations.
