New Delhi
Relations between the UAE and India have received a dynamic new momentum following the elevation of their ties to a comprehensive strategic partnership last year, but the UAE expects to make further investments in India more streamlined by removing existing bottlenecks, the UAE Minister of State for Foreign Affairs said Thursday.
“The UAE’s foreign direct investment in India is not very large in comparison to the size of the Indian economy. What we would like to see is a more attractive climate in terms of absorbing new investments from the UAE, and we are talking with each other to facilitate that,” Dr Anwar Mohammad Gargash said yesterday.
He was speaking to select media from the UAE and India as His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces commenced his three-day visit to India.
“The other issue is that a lot of foreign investment that comes to India is through the World Bank or similar financing, whereas in the UAE, we prefer investing through sovereign wealth funds and more on a commercial basis — so this is something that we are also working with the Indian government to realise,” he said. “The commitment from the UAE is there, we are currently discussing with the Indian government the right vehicles to make that investment through our funds.”
However, Gargash clarified that the UAE would not insist on India carrying out any structural reforms before making major investment commitments. “I think Prime Minister Modi put it succinctly when he told the 40,000 Indian expats who had gathered to hear him speak at the Dubai Cricket Stadium last year that he had a commitment of the billions coming to India, but if India does not make the environment attractive, then let’s not expect any money coming into India,” he said.
“As much as India is seeking UAE funds, we are also seeking India’s markets. It’s a win-win situation for both countries. We have to work together to achieve the goals set by both countries.”
On the expectations from the projected growth in bilateral trade by 60 per cent by 2020 to touch nearly $100 billion (Dh367 billion), Gargash said: “When we looked at the projected growth, we thought whether this would be realistic as a stretch target. We saw that with some work, this target is doable if both parties work together. Naturally, you cannot keep squeezing the same orange: new revenue streams are important to generate. For example, if we see greater cooperation in IT and solar energy, then these would bring new revenues.”
On security cooperation and fighting terror against the backdrop of the joint statement released by the UAE and India following Indian Prime Minister Narendra Modi’s visit to the UAE last August, Gargash said: “Battling the scourge of terrorism is not just a quick solution for the world, but a generation fight where all nations must come together.”
According to Dr Gargash, the UAE has taken the lead to address this through several initiatives, such as setting up the Sawab centre, the Hadiyat centre and a forum for moderate clerics. “This is a marathon — not a sprint. We should not expect that we will win the fight against terrorism the next year or the year after,” he said.
On bolstering trade relations, he said that with the new Indian government under Prime Minister Narendra Modi, the signs were very encouraging.
Speaking about possible investment opportunities as well as future areas of bilateral cooperation, Reem Al Hashemi, Minister of State, cited the Dubai Expo 2020 as a perfect example. “We have three sub-themes — mobility, sustainability and opportunity. For India, there are wonderful opportunities to collaborate in several areas, specially in renewable energy. Both India and the UAE have a strong clean energy policy and there are many areas to cooperate- whether between governments or private sector companies,” she said, adding: “We are excited about the potential and participation that this six month exhibition can bring to the Indian market, as well as boost tourism.”
On labour reforms, Gargash said the recent amendments to the UAE labour law, introduced on January 1, have borne positive results and streamlined the UAE labour market to a great extent.
Speaking about Shaikh Mohammad’s visit to Mumbai on Friday, he said the UAE’s links with India’s commercial capital go back by decades and many Emiratis feel a nostalgic connection to the city. “Mumbai has always been our window to the world. For our families and our parents before the age of easier travel, this was a cultural oasis. People went to hospitals and studied in universities there. So there’s a very strong and old connection between the UAE and Mumbai.”
