India and the United Arab Emirates (UAE) are demonstrating how a high-trust relationship can translate into high-impact outcomes. The Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has not remained a document of intent; it has become an engine for growth. During CII’s high-powered CEOs Delegation to the UAE on September 18-19, 2025, timed with the 13th meeting of the India-UAE High-Level Joint Task Force on Investments, the message from both sides was unequivocal: this is a partnership moving from promise to performance.

The economic signals are compelling. India-UAE bilateral trade climbed to $100.06 billion in 2024-25, up from $72.87 billion in 2020-21. More significant is the structural shift underway. Non-oil trade surged to $37.6 billion in the first half of 2025, a 33.9% jump over the same period last year. This is not incidental growth; it reflects deliberate policy choices and business confidence, with momentum extending into electronics, chemicals, machinery, smartphones, and other higher-value-added sectors.

At the core of this progress is market access — faster, wider, and more predictable. CEPA has reduced tariffs, streamlined customs, and opened up the UAE market to over 10,000 Indian goods. For Indian manufacturers, especially MSMEs, this is a critical opening. Lower landed costs and quicker clearances are translating into improved competitiveness, larger shelf space, and more resilient order books. These benefits ripple through the domestic economy, catalysing jobs not only on factory floors but across logistics, compliance, packaging, quality assurance, design and after-sales services.

The initiative, such as Bharat Mart, coming up in the Jebel Ali Free Zone, will further amplify these gains by serving as a permanent showcase for Indian products in the Gulf. With integrated warehousing, display, and distribution facilities, it will lower entry barriers for MSMEs and enable faster, more efficient access to high-potential markets across West Asia and Africa.

Investment flows tell a complementary story. The UAE is India’s seventh-largest investor, with over $24 billion in FDI between April 2000 and June 2025. There are advanced discussions happening in priority sectors like maritime infrastructure, space technology, fintech and green energy, where capital and capability combine to create durable multipliers. These are areas that build supply chains, embed technology transfer and strengthen India’s manufacturing and innovation base. As CEPA enters its next phase, the focus must shift toward deepening these investment pipelines. Co-creation hubs, standards harmonisation, and targeted incentives can anchor long-term projects and foster joint ventures that strengthen India’s manufacturing and innovation ecosystems.

In this context, UAE Sovereign Wealth Funds (SWFs) can play a pivotal role in unlocking next-generation investment flows. UAE Sovereign Wealth Funds (SWFs) can play a catalytic role in driving next-generation investments into India by earmarking dedicated capital for strategic sectors like EVs, semiconductors, renewable energy, and health-tech. Beyond funding, SWFs can forge strategic partnerships with Indian firms to enable technology transfer and global innovation linkages. Such engagement would strengthen bilateral ties and accelerate India’s manufacturing and innovation ambitions.

The people dimension of the India-UAE partnership is also vital. With over 4.2 million Indian professionals living and working in the UAE, the two countries share a vibrant talent corridor. CEPA has facilitated smoother mobility, enabling skill development and entrepreneurship. As both economies transition toward digital, green, and service-led growth, this corridor will become increasingly strategic, supporting knowledge exchange and innovation.

Equally noteworthy are initiatives such as the CEPA Council’s Start-up Series, which attracted more than 10,000 applications from Indian entrepreneurs within a span of 50 days. These programs demonstrate how CEPA is facilitating the international expansion of Indian enterprises by providing access to funding, mentorship, and global markets via the UAE.

We also see India-UAE collaboration extending beyond bilateral borders. Transformative opportunities exist in joint infrastructure and development projects in Africa and across the Gulf Cooperation Council (GCC) – ventures that tap the UAE’s investment capacity and India’s execution excellence. Such third-country partnerships can create templated, scalable models for sustainable growth, while reinforcing the two countries’ roles as co-architects of a more inclusive global economy.

Key projects like the India-Middle East-Europe Economic Corridor (IMEC) promise to reshape trade routes, with the UAE playing a central role. This, along with the $2 billion food corridor being jointly launched by India and the UAE, focusing on agri-tech and supply chain resilience, underscores our partnership’s commitment to addressing global challenges through innovative collaboration.

Financial integration will be another force multiplier. Ongoing work to integrate payment systems and facilitate trade in local currencies between the two countries will reduce transaction costs and enhance the ease of doing business for SMEs and large firms alike. The two countries’ leaning engagement on Central Bank Digital Currencies (CBDCs) signals an intent to build a modern, trusted, and interoperable financial corridor, exactly the kind of infrastructure that accelerates trade and investment in real time.

CII remains focused on converting policy tailwinds into business outcomes. Our Dubai office serves as a strategic bridge, supporting market entry, trade missions, investment dialogues, and policy advocacy. As companies navigate standards, certifications, and supply-chain partnerships, we will provide the on-ground support and feedback loops that keep CEPA delivering for exporters, investors, and workers.

The road ahead is ambitious but achievable. India and the UAE have reaffirmed a bold target of doubling non-oil and non-precious metals trade to $100 billion within the next three to four years. Meeting this milestone will demand execution discipline, accelerated facilitation for high-potential sectors, faster dispute resolution, targeted financing for MSME exporters, and sustained collaboration on digital trade and sustainability. Alongside this trade vision, both countries have underscored the target of UAE investments worth around $ 100 billion across vital Indian industries, including energy, artificial intelligence, logistics, food, and agriculture, reflecting an increasingly diverse and robust economic partnership.

This partnership is no longer transactional; it is transformational, anchored in mutual respect, shared values, and a common vision for inclusive prosperity. The recent CEOs Delegation has renewed our conviction that with CEPA as the catalyst, we can expand market access for Indian goods, create high-quality employment at home, and unlock deeper investment flows that strengthen India’s growth story. Together, we are not just building trade bridges; we are shaping a resilient, future-ready corridor of opportunity.