The United Arab Emirates (UAE) and India recorded a sharp increase in bilateral non-oil trade during the first half of 2025, underscoring the growing impact of the Comprehensive Economic Partnership Agreement signed in February 2022 and implemented in May that year. According to UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi, non-oil trade between the two countries reached USD 37.6 billion from January to June 2025, representing a 33.9 percent increase compared with the same period in 2024. The two sides are targeting USD 100 billion in non-oil trade by 2030 under the terms of CEPA.
The latest figures were released during the 13th meeting of the UAE-India High-Level Joint Task Force on Investments, held in Abu Dhabi and chaired by Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA), and India’s Minister of Commerce and Industry, Piyush Goyal. The task force reviewed CEPA’s implementation and discussed further steps to enhance trade, investment, and economic integration. Officials confirmed that bilateral trade in goods has almost doubled since CEPA came into effect, growing from USD 43.3 billion in the financial year 2021 to USD 83.7 billion in 2024.
The agreement has reduced or eliminated tariffs on a wide range of goods and services and streamlined customs procedures, making it easier for companies to conduct cross-border transactions. The task force also highlighted progress on Bharat Mart, a logistics and distribution hub under development in Dubai’s Jebel Ali Free Zone. The facility is designed to support Indian exporters by providing infrastructure for warehousing, display, and re-export of products to international markets. Both sides have confirmed that work on the project is ongoing.
Bharat Mart to support Indian exports from UAE hub
Discussions included efforts to improve trade settlement mechanisms and financial integration. Authorities reviewed steps toward facilitating the use of local currencies in trade transactions, linking the countries’ payment systems, and exploring cooperation between their respective central banks on digital currencies. The meeting also focused on sectoral cooperation in maritime transport, space exploration, telecommunications, food processing, pharmaceuticals, and renewable energy. The two governments are working to identify joint initiatives that align with existing trade and investment frameworks, CEPA provisions, and national development plans.
India is currently the UAE’s second-largest trading partner, while the UAE ranks as India’s third-largest. Under CEPA, thousands of Indian and Emirati products have received preferential market access. Investment flows between the two countries have also grown, with UAE sovereign funds and private investors increasing stakes in Indian infrastructure, energy, and technology projects. The task force reaffirmed its commitment to addressing operational challenges and facilitating private sector engagement through joint platforms.
CEPA model adopted for future regional agreements
Discussions are ongoing between respective trade and investment promotion agencies to improve transparency and reduce barriers for investors. The UAE–India Comprehensive Economic Partnership Agreement (CEPA) represents the UAE’s first bilateral trade pact and India’s first such agreement with a Middle Eastern nation. Since its entry into force, it has set a precedent for future trade frameworks in the region, becoming a benchmark for similar negotiations. CEPA is widely seen as a pivotal step in advancing the strategic economic ties between the two countries.
The joint task force, which oversees its implementation, is scheduled to reconvene in India, where both governments will continue reviewing progress and aligning regulatory frameworks to maximize bilateral trade and investment potential. Bilateral trade between the UAE and India has significantly expanded since 2014, growing from approximately USD 60 billion to over USD 84 billion by 2024, reflecting the deepening commercial ties and ongoing policy coordination between the two economies under successive trade and economic reforms. – By Content Syndication Services.