The signing of a comprehensive economic partnership that is widely awaited (CEPA) between India and the United Arab Emirates (UAE) this week, will increase trade and trade between two Asian economies. The agreement was previously scheduled to be signed during PM Modi’s visit to the UAE in the first week of January 2022 but the visit was canceled due to an increase in the threat of omicron variants. Bilateral trade between two giant economies is scheduled to jump from US $ 60 billion to US $ 100 billion with an additional US $ 15 billion thrown as a service.
India and the UAE have traditional trade relations through centuries and trade dominated by items such as dates, pearls and fish, undergoing sharp changes with oil imports starting in 1962. However, a real encouragement began as a regional trade hub at the beginning The 1990s and around the same time, the economic liberalization process began in India. India-UAE trade, worth US $ 180 million per year in the 1970s, today stands around US $ 60 billion before being hit. Trade with India is now at US $ 43.3 billion to make UAE, the third largest trading partner in India for 2020-21. In addition, UAE is the second largest export objective of India (after the US) with a total of more than US $ 30 billion for 2018-19. For UAE, India is the second largest trading partner with US $ 36 billion (non-oil trade).
The United Arab Emirates (UAE) has taken several steps to modernize their economies and in accordance with international norms. In 2018, taking a signal from India, the Emirati government has introduced a five percent sales tax in accordance with international practice. On the night of 2022, UAE, in a landmark decision, entered synchronously with a world-liberalized world by declaring Monday as the first weekday of the week. Previously, like the other Middle East including Israel; Friday and Saturday are holidays and there are only four working days, from Monday to Thursday, available for commercial trade with all over the world. Now the private sector has five days and the government office will work for four and a half days. This paradigm shift will increase commercial activities and further improve the emirates economy.
The UAE has also decided to collect corporate tax at a nine percent level from next year to meet international standards. Emirati economy is the fifth largest in the Middle East and the third largest among Arab countries after Saudi Arabia and Egypt, rank 29 throughout the world.
However, the income per capitulation is higher and pegged in 24th place in the world. The UAE has the highest per capita income of $ 89,000 in the Middle East followed by Israel. Of ten million populations, the Arab population is less than a quarter. India, 3.5 million, has a 27 percent highest ex-pat population in the UAE followed by Pakistan, the Philippines, Bangladesh, and Nepalese people. There are 14 billionaire Indian immigrants and thousands of Indian millionaires in this country.
Credit builds the nation and its economy in the UAE go to leaders from two in power; Al Nahyan in Abu Dhabi and Al Maktoum in Dubai. Until 1971, seven sisters – the Emirates, namely Abu Dhabi, Dubai, Sharjah, Ajman, UMM al-Quewain, Fujairah, and Ras Al-Khaimah were ruled by England. In the achievement of independence and the end of the British protectorate in 1971, HH Sheikh bin Sultan Al Nahyan, ruler Abu Dhabi, brought together seven Emirates into one country and became the founder of the UAE. He was the first president (RAIS) from the UAE until he died in 2004 and was replaced by his son, HH Emir Sheikh Khalifa bin Zayed al Nahyan. HH Sheikh Rashid bin Saeed al Maktoum, the ruler of Dubai and a visionary leader, became the Vice President and the UAE Prime Minister in 1971 and helped in modernizing the newly made countries.