DAVOS 2023: India & UAE To Settle Non-Oil Trade In Rupees

India and the UAE are discussing the trading of non-oil commodities in Indian rupees. Both countries aim to decrease the dependency of western currencies.

Dr. Thani Al Zeyoudi, the Emirati minister for foreign trade, stated on Thursday that the UAE and India are in the early stages of discussions to trade non-oil commodities in Indian rupees. 

On the eve of the WEF (World Economic Forum) Summit in Davos, he made this announcement.

When questioned by Reporters about the possibility of rupee trading with India, Al Zeyoudi responded, “Yes, we are in contact with the Indians.” He noted that the discussions were about non-oil commodities.

In an interview conducted on the premises of the World Economic Forum in Davos, he stated, “They are in the early phases.”

Strong Bilateral Diplomatic & Trade Relations

The UAE and India are trying to strengthen their bilateral diplomatic and trade relations through trades and other activities.

The top oil exporter in the Arab economy, Saudi Arabia, stated this week that it would be open to trading in currencies other than the U.S. dollar.

One of the biggest trade partner of Gulf oil

India is among the biggest trade partners for Gulf oil. Both countries (India & UAE) signed CEPA last year aimed to strengthen trade relations between the countries.

The UAE is one of the largest trading partners for Gulf Arab oil and gas producers, the majority of whose currencies are linked to the U.S. dollar, and it signed a comprehensive free trade agreement with India last year.

The idea of making non-oil trade payments in local currencies had been brought up by other nations too, including China, according to the minister, but conversations with other countries (apart from India) weren’t reached at any conclusion.

Aims To Increase Bilateral Non-Oil Trade To $100 Billion In 5 Years

The UAE has aimed to scale the trade deal with India to increase bilateral non-oil trade to $100 billion in the next five years.

The UAE has stated that while its key security and investment links are in the West, where Gulf Arab governments have long-standing strategic partnerships, particularly with the United States, its commercial contacts are increasingly looking to Asia.

Strong Relations Between UAE & India Across Sectors

The United Arab Emirates and India share a strong bond of friendship, which has been further strengthened through the years. 

This relationship is not only based on trade and investment but also on the shared commitment towards climate action. 

From renewable energy to sustainable development, both countries have taken steps to reduce their carbon footprint and promote green initiatives. They have also worked together in various sectors such as healthcare, education, and infrastructure.

The UAE-India ties are set to become even stronger in the future as both nations look to collaborate more closely across sectors for mutual benefit. 

With their shared commitment towards climate action, they can work together to develop strategies that will help them achieve their environmental goals while still promoting economic growth.