Dubai: India and the UAE will sign an agreement next week that will ensure promotion and protection of bilateral investments, said the outgoing Ambassador of India to the UAE, MK Lokesh.

Ambassador Lokesh made the announcement while speaking at the farewell lunch organised in his honour by Indian Business and Professional Council Dubai on Sunday.

The Bilateral Investment Protection Agreement (BIPA) will provide a comprehensive framework to investors from both countries.

“India and UAE have historic ties. The relationship is important for both the countries. Both sides have worked hard to get this agreement ready that will regain investor confidence. A delegation from UAE headed by the Foreign Minister will visit New Delhi next week to sign the agreement with the Indian foreign Minister,” said Lokesh, who is among the brains behind BIPA.

Lokesh, who is now heading to Switzerland, said: “I was initially reluctant to come to the region, because my impression about the Arabian Gulf countries was different. But the moment I landed in the UAE I was struck by the pleasant environment here and I felt better when I saw so many Indians here. I hope Indians will continue to play a positive role in the growth of this country.”

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Bilateral trade between the two countries goes back centuries, with India now being the UAE’s biggest trading partners. UAE has investment interests in India mainly through Emaar and etisalat, while India has varied investment in the UAE, surpassing Dh200 billion, according to figures released by IBPC.

“The landmark agreement will be a fitting farewell gift to the ambassador, whose 43-month tenure has seen trade between the two countries almost double from Dh161.5 billion three years ago to Dh275.25 billion. This is a golden era of India-UAE relationship and Ambassador Lokesh has played a key role in improving the relationship further,” said Paras Shahdadpuri, President of IBPC, speaking at the farewell gathering.

Shahdadpuri pointed to the reactivation of India-UAE Joint Commission on trade as the highlight of the ambassador’s major achievements.