India-Dubai Economic and Commercial Relations

Extends approx. 72 k.m along the Arabin Gulf coast of the U.A.E has an area of 3,885 sq. km equivalent of 5% of the country’s total landmass. Dubai has four offshore oil field, Fateh, Southwest Fateh, Rashid and Falah, and an onshore gas and condensate field at Margham.

Development activities in Dubai

• Al Ghaith to set up integrated steel plant project worth DH 514 million which is expected to take off by mid – 2006
• Arvind Brands, makers of Indian menswear brand Excalibur, plans to open outlets throughout the gulf.
• Development of a New city the Dubai Marina which is a master planned community for 40,000 people located in the centre of Jumeirah. Resort hotels, pristine beaches, exclusive shopping, a variety of beautiful homes and a tranquil marina are the beginning.
• Saba Constructing Dubai’s first twin-tower residential project with an investment of DH1.2 billion.
• Other development activities like the Emirates living and the Arabian Ranches are also taking place.
• Emirates National Oil Company (ENOC) has revealed a $250 million plan to upgrade its oil refining to include gasoline production
• Dubai’s investment of $30 billion in aviation infrastructure will make it the largest aviation hub in the Middle East.
• The annual Motor show at Dubai yields deals worth over Dh70m.
• Work on the Palm Mall Jumeirah Project to be started in the summer of 2004 which is a $500 million investment program.
• Construction of the Tallest Tower in the World to be started in Bruj Dubai which will be over 800 meters.
• Bids invited for Mina Seyahi expansion, a contract valued at $27.2 million, covers reclamation of two kilometers of breakwater.
• Construction of Dubai land, a tourist city costing $4.9 billion, is meant to attract 15m visitors a year to Dubai by 2010.
• Construction of the two giant Palm Islands emerging at a cost of $6 billion, having around 100 hotels being built on them.
• More than 100 swish apartment towers are growing up, as well as a dozen or so sprawling housing estates.
• Dubai’s Financial City is being developed.
• Madina Jumeirah, the construction of a traditional city is also taking place.
• A rail transit system is also to be designed and built on the palm Jumeriah development.

INDIA-UAE TRADE

Source: DGCI&s, Govt. of India

*Does not include oil import figures.

Major Items of Exports from India:

• Gems & jewellery
• Textiles
• Manufacture of metals
• Machinery & instrument
• Plastic & linoleum products
• Tea
• Marine products, etc.

Major Items of Imports by India:

• Pearls, precious / semi precious stones, gold
• Pulp & waste paper
• Sulphur & unroasted iron pyrites
• Metalifer ore & metal scrap
• Organic / inorganic chemicals, etc.

Nature of Indo-UAE Bilateral Trade:

• UAE is India’s topmost trading partner in the entire WANA region. UAE alone represents 70% of India’s export to GCC countries.
• Indian exports to UAE accounts for 6% of India’s global exports.
• Dubai is a major export trade center and a gateway for the whole of Arab world.
• Revival of oil prices since late 1999 has strengthened the trading position of GCC countries in general and UAE in particular.
• Oil & gas production are the main stay of UAE’s economy.
• To reduce dependence on oil & gas, Abu Dhabi has planned large scale privatization programme in all fields, especially the power & water sectors.
• UAE market being an entrepreneur of trade center is characterized by tough competition and hence price sensitive.