Over the past two years, the signing of the UAE-India CEPA deal has led to a notable transformative alliance between two economic powerhouses. The partnership is redefining the landscape of global trade and logistics, while also reinforcing the bond between our nations, manifesting in substantial growth and mutual benefits.
The Jebel Ali Port’s performance offers concrete evidence of this robust partnership. Between 2019-23, total imports and exports increased substantially, from 400,000 TEUs to 576,800 TEUs – an increase of 44 per cent, with a sizeable jump since the CEPA came into force in May 2022. This trend is reflected in broader trade statistics with India, where 2022 saw cargo throughput reach over 50 million metric tonnes.
The Jebel Ali Free Zone (JAFZA) saw a remarkable 28 per cent year-on-year increase in new Indian business registrations last year, underscoring the zone’s pivotal role in channelling UAE’s non-oil trade with India.
As of 2023, over 1,500 Indian companies have established their presence in JAFZA, and thanks to the wealth of initiatives and business-friendly policies, we expect this number to continue to rise.
This collaboration extends beyond trade volumes. The recently unveiled state-of-the-art Agri Terminals complex at Jebel Ali Port, with an investment exceeding $150 million, is set to become one of the region’s most extensive facilities for storing and processing grains and pulses. This initiative enhances our logistical capabilities and will support India’s agricultural industry.
The development of Bharat Mart, a sprawling 2.7 million square feet distribution hub, is set to broaden the market reach for Indian products, offering access to a global consumer base and cementing the economic interdependencies of our regions.
The impact of our flourishing partnership is evident. As we continue to capitalise on the opportunities following the signing of the CEPA, we remain dedicated to fostering a resilient and prosperous future, strengthening the economic bonds between our nations and setting new benchmarks in global trade dynamics.
The writer is CEO and Managing Director, DP World GCC.