Mohammed bin Zayed visit a big win for businesses

The UAE is a key global trading and financial centre thus it is imperative for Indian companies to have a presence in the country, said Rashesh Shah, chairman and chief executive officer of Edelweiss Group.
"The UAE is an important market for Edelweiss businesses as well and the fact that Abu Dhabi Investment Authority, or Adia, holds a stake in Edelweiss, just adds another critical dimension. We believe the recent state visit and agreements signed is indeed a big win for India-UAE business relations and will result in strong dividends for both."
The visit to India by His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and the UAE delegation is a reaffirmation of the traditionally historic social and business ties which the UAE and India have had. The UAE is India's third largest trading partner and India is the UAE's largest trade partner. Against this background, it is but natural for ties to deepen across social, political, economic areas. Further, the high-level delegation visiting during the Make in India week emphasises the deepening relations between the UAE and India.
Together, the UAE and India have signed over seven agreements across cyber security, infrastructure, investment, renewable energy, space, etc, and have discussed cooperation across maritime security, food security and other critical areas. Other agreements are also expected. The commitment to boost trade ties by over 60 per cent over the course of the next five years will be pivotal.
"Under the strong leadership and visionary thinking the UAE had adopted an early diversification approach which has ensured that it is today better equipped to face the current global economic volatility compared to the other GCC countries," said Shah.
Notably, UAE sovereign wealth funds have been recalibrating their investment strategy from developed to developing markets. With low oil prices and a fluid global macroeconomic situation, the UAE has been seeking longer term opportunities and India with its current growth of over seven per cent year-on-year and stable political scenario, offers a compelling opportunity across sectors.
FDI in India by the UAE which has more than doubled since 2013 reflects this trend. In the current global economic scenario, which is not as comfortable as one would have wanted, India can provide the UAE entrepreneur a clear opportunity.
As per Indian government estimates, India will need $1 trillion for funding infrastructure projects over the next five years. So far banks have been the primary source of funding. However, there is a strong need to develop and channelise the investments into infrastructure through the bond markets. Against the above backdrop, the agreements while providing an attractive investment opportunity for UAE sovereign wealth funds, will also provide India with long term financing to fund infrastructure development.
Post PM Narendra Modi's visit to the UAE, India has already started seeing significant investments coming in. The Abraaj Group bought out a majority stake in Indian hospital chain Care, Adia has invested in ReNew Power and several other such investments have been made. MoUs similar to the one signed between the UAE's Insurance Authority and the Insurance Regulatory and Development Authority of India (IRDAI) will further improve cooperation in between UAE and India. Additionally, the MoU to promote bilateral financial relations through currency swap arrangement between the Reserve Bank of India and Central Bank of UAE will help strengthen trade and businesses ties. Earlier, it has been reported that the UAE has initiated a Mars mission for 2020 where India has agreed to assist and that UAE will be opening the world's first Bollywood theme park.
- sandhya@khaleejtimes.com