Dubai: UAE and India are working to finalise a Bilateral Investment Promotion and Protection Agreement (Bippa) to enhance investments between the two countries, the Department of Economic Development (DED) said on Monday.
This agreement is supposed to drive investment in India from the UAE across different sectors including construction, down-stream manufacturing in the petroleum and natural gas sector, as well as agriculture and food processing.
Initiated in 1991, following the liberalisation of its foreign investment policy, India negotiated with a number of countries to enter into such arrangements protecting the interests of investors.
Saed Al Awadi, CEO of Dubai Export, an agency of the Department of Economic Development Department in Dubai, said: “With the liberation of key sectors in India, there are an increasing opportunities for the UAE to invest in the country.”
India is the UAE’s largest trading partner with trade ties spanning generations. This agreement will enhance the economic ties between the two countries further, he added.
Science and technology, renewable energy, information technology (IT), education, health and financial services are other sectors with significant investment potential in India.
India, the second-fastest growing economy in the world, is one of the most attractive destinations for foreign direct investment (FDI) in Asia, raking in about Dh8.4 billion. The UAE ranks tenth among the top investing countries in India.
The UAE’s investments in India are focused mainly in the power, metal industries, construction development, services and information and communications technology (ICT) sectors.
The Indian community is the largest in the UAE both in population and business, contributing significantly to the national economy, and in particular, that of Dubai.
According to Dubai Chamber of Commerce and Industry statistics, Indian membership stood at 24,566 in 2012. The Indian community has been active in all sectors of the business community across the country, Al Awadi said.
