CEPA has significantly reshaped trade flows, particularly boosting non‑oil sectors. Non‑oil trade exceeded US$57.8 billion in fiscal year 2023–24 — more than half of total bilateral trade. The UAE Economy Minister Abdulla bin Touq Al Marri indicated that non‑oil trade reached US$65 billion in 2024, a 19.7 percent increase over the prior year, and well over double the US$27.9 billion recorded in 2020.
CEPA’s structural provisions have delivered wide‑ranging benefits across sectors. Around 90 percent of Indian goods now enjoy tariff‑free access to the UAE, benefiting key industries such as gems and jewellery—whose exports rose from US$4.9 billion to US$8 billion in fiscal year 2024—textiles, pharmaceuticals, and electronics. Streamlined logistics, regulatory certainty and investment facilitation have drawn sovereign investment: UAE vehicles such as ADIA, Mubadala and ADQ have ramped up investments in Indian infrastructure, healthcare, retail, banking, technology and logistics.
On the ground in the UAE, Indian entrepreneurs are achieving unprecedented momentum. More than 41,600 new Indian economic licences were issued in 2024, bringing the total number of active Indian business licences in the UAE above 247,000. Investment flows are deepening: by late 2023, UAE direct investments in India stood at nearly US$17 billion, while Indian investments in the UAE totalled around US$8 billion — a mutual investment pool of US$25 billion, 70 percent of which originated from the UAE.
Digital and infrastructural integration is advancing via strategic platforms. Fintech alignment has accelerated: India’s UPI system is now accepted in the UAE, providing real‑time rupee transactions. Physical and digital logistics are being aligned through Bharat Mart in Dubai’s Jebel Ali Free Zone—a 2.7 million sq ft export hub designed for MSMEs and women-led enterprises—and the Virtual Trade Corridor, which integrates customs and trade systems.
Innovation and start‑up collaborations are expanding as well. The Sharjah Entrepreneurship Centre and Startup Middle East have signed an MoU to establish an India Startup Hub in Sharjah. This facility will serve as a base for Indian entrepreneurs seeking to access Middle Eastern markets and innovation networks.
Infrastructure and strategic energy cooperation are gaining notable prominence. India and the UAE have agreed to develop an energy hub in Trincomalee, Sri Lanka. The hub, to include a pipeline and utilise existing fuelling infrastructure—potentially including facilities part-owned by an Indian Oil subsidiary—represents a significant energy collaboration amid growing regional competition.
The Indo‑Middle East‑Europe Economic Corridor further illustrates the geopolitical and logistical stakes of the partnership. Proposed in September 2023, the IMEC aims to link India and Europe via the UAE, Saudi Arabia, Israel and Europe, enhancing connectivity while offering an alternative to traditional routes such as the Suez Canal. This corridor underlines evolving ambitions for widened trade networks and strategic linkages.
CEPA’s performance has exceeded its own ambitious targets. It is designed to elevate non‑oil trade to US$100 billion annually by 2030. Already on a fast‑track trajectory, the bilateral trade figures are positioning both economies to exceed that goal ahead of schedule.
Meanwhile, investment diversification is accelerating into renewable energy, green hydrogen, defence, agritech, data infrastructure and waste‑management technologies. Indian investment in UAE sectors such as software, IT services, business services, consumer goods, real estate and food & beverages is surging, fuelled by trade facilitation and more streamlined regulatory frameworks.
This complex matrix of trade growth, innovation platforms, strategic infrastructure, fintech integration and corridor planning illustrates how CEPA is not merely a trade deal—but a foundational driver of a multidimensional economic partnership between the UAE and India, setting a progressive template for future cross-border collaboration.
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