A new dimension to traditional friendship

India and the UAE plan to share and build on a vision to succeed in all spheres.

India and the UAE have shared trade links through the centuries. The trade, which was dominated by traditional items such as dates and fishes, underwent a sharp change after the discovery of oil in the UAE, with India starting to import a sizeable quantity of oil from the UAE.

At the same time, with the emergence of the UAE as a unified entity in 1971, India's exports also started growing gradually over the years. The real impetus, however, started after Dubai positioned itself as a regional trading hub in the early 90s during which time the economic liberalisation process started in India.

The Indo-UAE Joint Commission for Economic, Technical and Scientific Cooperation was set up in 1975 to meet annually at the External Affairs Ministry level. The eighth session of Joint Commission Meeting (JCM) took place in Abu Dhabi in September 1994, and the ninth session of the India-UAE JCM took place in New Delhi in June, 2007, says Talmiz Ahmad, Indian ambassador to the UAE.

"Both sides discussed issues towards promoting bilateral cooperation in the following fields: trade and investment; combating crime, terrorism and illicit activities; education, culture, youth and sports, health, science and technology; agriculture and environment; manpower, energy, hydro-carbons, petrochemicals and fertilisers; customs cooperation; civil aviation and telecommunications and other issues. The 10th session of JCM is scheduled to take place in Abu Dhabi soon," says Ahmad.

Joint agreement

A Joint Business Council (JBC) agreement was signed on February 19, 2004 in Mumbai between the Federation of UAE Chambers of Commerce and Industry and Federation of Indian Chamber of Commerce and Industry (FICCI). "Pursuant to the signing of the agreement the first meeting of the JBC was held in Abu Dhabi on March 8, 2004," says Ahmad.

"At the meeting, a decision was taken to form a sub-committee to pursue the issues discussed to identify and focus on areas of interest between the two countries. The sub-committee is also to carry out sector specific studies and suggest measures to intensify activities in areas such as IT, oil and gas, healthcare, infrastructure developments, tourism etc," he says.

As per the agreed minutes of the official level meeting in March, 2007, it was decided that the chambers of commerce in both countries should enhance contact by meeting more regularly and exchanging business delegation.

Follow-up meeting

"Our embassy is following up with FICCI to activate preparations for the next Joint Business Council's meeting which may take place in New Delhi," says Ahmad.

As agreed by both sides during the first India-Arab World Business Summit in Dubai in December 2006, the first India-UAE Trade Policy Forum for facilitation of bilateral trade took place in India on May 28. The UAE Minister of Economy Shaikha Lubna Al Qasimi participated in the Forum and held discussions with Commerce and Industry Minister Kamal Nath.

His Highness Shaikh Mohammad Bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, visited India from March 25-26, 2007, and the following agreements were signed during the visit: framework agreement between India and the UAE for developing industrial relationship; protocol between India and the UAE amending the agreement for avoidance of double taxation and prevention of fiscal evasion with respect of taxes on income; memorandum of understanding (MoU) for technical cooperation between Bureau of Indian Standards (BIS) and Emirates Authority for Standardisation and Metrology (ESMA); MoU for technical cooperation in accreditation activities between National Accreditation Board for Testing and Calibration Laboratories and Emirates Authority for Standardisation and Metrology; MoU between Securities and Exchange Board of India and Emirates Securities and Commodities Authority for Assistance and Mutual Cooperation on the exchange of information.

Air transport

"At the last JCM both India and the UAE agreed that air transport constitutes an important element for promoting bilateral interaction whose orderly growth should be facilitated. This should serve the needs of the people of the two countries and promote tourism. Both sides would encourage the concerned authorities to further expand air transport capacity, according to the requirements, to strengthen this cooperation," says Ahmad.

"The Civil Aviation Agreement was signed initially enabling operation of flights between Gulf Air into India and Air India and Indian Airlines to the UAE. Subsequently Emirates airlines and about three years back Etihad Airways started in Abu Dhabi and Air Arabia, a budget airlines started by the Government of Sharjah, also began operations to India. Bilateral air service talks were last held from March 15-16, 2007.

"According to the MoU signed during the talks, Kochi and Thiruvananthapuram were granted as additional points of call for the designated airlines of the UAE. In addition to the existing entitlements specified for operations on India-Dubai and India-Sharjah routes, the designated airlines of India shall be entitled to operate, with fifth freedom traffic rights via any points in Asia (including intra-Gulf) and beyond to any points in North America, Europe (including the UK), Asia (including intra-Gulf) and Africa," says Ahmad.

India and the UAE enjoy historical relations which include regular movement of people, trade and commerce.
Economic growth

"After 1970, with the UAE witnessing a phase of massive development, requiring skilled and semi-skilled workers for its economic projects, it has become a popular destination for skilled and unskilled people aspiring to emigrate for higher earnings," he says.

"The embassy is seriously concerned about the welfare of Indians abroad, particularly the labour community and has been addressing the problems being faced by compatriots. There are many areas in regard to the overseas employment of our nationals where preventive action in India can and should be taken to ensure that they do not place themselves in a situation where they become illegal in terms of local laws and rules."

It is estimated that there are about 1.4 million Indians in this country, including dependent family members.

"The UAE is a rare success story in West Asia where growth has exceeded all expectations. In the last 30 years, the Rulers of the UAE have turned the nation from a modest port into a booming regional hub of business, banking, trade, and real estate. It has a high economic growth rate and attracts more tourists than many countries because of its high-quality life, stable economy, world-class infrastructure, ever-rising skyline, rule of law, safe and secure living and a number of job opportunities.

"Together with its cosmopolitan look, it attracts people of all nationalities to live and work in the UAE," says Ahmad.