India and UAE Sign Trade Deal to Connect Subcontinent with Europe

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ICARO Media Group
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13/02/2024 22h59

In a bid to enhance regional connectivity and strengthen economic ties, India and the United Arab Emirates (UAE) have signed a trade deal that aims to connect the subcontinent with Europe via Middle Eastern ports. The agreement was announced during the visit of Indian Prime Minister Narendra Modi to Abu Dhabi, where he met with Emirati President Sheikh Mohammed bin Zayed Al Nahyan.

The trade deal, termed the India-Middle East-Europe Economic Corridor, is a framework for a ship-to-rail transit network that had been discussed since last year's G20 summit in New Delhi. The initial plan was to establish a trade route that stretches from India across the Arabian Sea to the UAE, continuing through Saudi Arabia, Jordan, and Israel, and finally reaching Europe. However, the latest announcement of an "intergovernmental framework agreement" only mentioned the involvement of India and the UAE, without explicitly mentioning any other countries.

India's Foreign Ministry stated that the deal would build upon previous understandings and cooperation, further strengthening the regional connectivity between India and the UAE. Emirati President Sheikh Mohammed expressed his optimism about the collaboration, emphasizing his country's ambition to develop a promising future with India.

During his two-day visit, Prime Minister Modi will inaugurate a major Hindu temple in the UAE, making it his third visit to the country within the last eight months. This grand event is expected to attract an estimated 60,000 Indian expatriates living in the UAE. India has the largest expatriate population in the country, with approximately 3.5 million Indian nationals residing there - more than any other Gulf state.

The trade agreement signed between India and the UAE marks a crucial step towards strengthening economic cooperation and regional connectivity in the Middle East. As the subcontinent aims to expand its trade routes to reach Europe, this collaboration is expected to bring mutual benefits to both countries and foster a stronger relationship between India and the UAE.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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