India-United Arab Emirates Economic and Commercial Relations

Progress of UAE in the national and international affairs

The annual Meetings of the International Monetary fund and World Bank in Dubai amply testify the growing importance of the country in the world and the story of economic success has astounded the world.

• The oil earnings are expected to climb to around $17.6 bn from $16.7 bn in 2002.
• UAE will maintain one of the world’s highest per capita incomes of around $18.730.
• The population is likely to grow to about four million from 3.75 million.
• The gross domestic product is expected to rise by 4.4 per cent in real terms as it is expected to expand to around $74.9 billion compared with $71 billion last year.
• An attractive destination of trade and investment and more than 4,000 companies are at present operating in the country’s free zones with an estimated business turnover of over $8 billion.
• A very small country and is served by 6 international airports with top-class services

DUBAI

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.

ABU DHABI

Abu Dhabi is the Largest of the seven emirates occupying over 86 percent (67.340 square kilometers) of the Country’s total landmass. Since Abu Dhabi Emirate process more than 90 per cent of the UAE’s oil reserves and produces over 85 percent of its oil, the city is also the headquarters of the main oil companies and a major business manufacturing and trading center.

Development activities in Abu Dhabi

• Abu Dhabi and other UAE members are pushing ahead with a plan to tear down foreign investment barriers by eliminating compulsory national partnership and allowing full ownership by foreigners in some projects
• Abu Dhabi’s Executive Council has approved the award of the Taweelah reverse osmosis project.
• Abu Dhabi expects $10 billion investment in industrial zones.
• Abu Dhabi is to pursue plan for regions biggest oil field and service complex
• The Abu Dhabi Company for Onshore Oil Operations (ADCO) has grown vastly in size and is building sustainable crude oil production capacity to 1.4 million barrels a day by 2006 through development of new fields.
• New shopping mall planned in Abu Dhabi with an estimated cost of $60 million.

RAS AL KHAIMAH

Ras Al Khaimah has an impressive coastline of approximately 64 kilometers bordering the Arabian Gulf. The area of emirates is 1,680 Square kilometers, equivalent to 2.2 per cent of the UAE’s total landmass.

Cement manufacture, stone quarrying in the mountains and oil production from the offshore Saleh field have helped to fund prosperity in this Emirate.

Development activities in Ras Al Khaimah

• Ras Al Khaimah is constructing a new Dh65 million century mall.

• Ras Al Khaimah Sheikh Saud bin Saqr Al Qasimi and Deputy Ruler, confirmed that 11 industrial investment opportunities at a total cost of Dh 777 million are being reviewed by the emirate.

SHARJAH

Sharjah Occupies an area of 2,590 sq.km equivalent to 3.3 per cent of the Country ‘s total landmass

.Development activities in Sharjah

• Bank of Sharjah (BoS), which has almost trebled its equity capital from Dh260 million to Dh750 million, has palns to grow and to expand its operations into GCC and other regional markets.
• Sharjah has Free Zone specialties.

FURAIRAH

Furairah with a breathtaking coastline of more than 90 km, is the only west of the Hajar Mountains. The emirate occupies an area of 1.165 square km equivalent to 1.5 per cent of the country’s total landmass. It is an attractive town and a rapidly developing commercial and tourist center besides it provides easy access to international shipping routes.

UMM AL QUWAIN

The total area of the emirate, which has a coastline stretching to 24 km, is approximately 777 sq. km equivalent to 1 percent of the country’s total landmass.

Umm Al Quwain has excellent quality of lime equipped to produce cement at the cheapest cost.

AJMAN

Ajman is located at a short distance north-east of Sharjah City, has a beautiful 16 kilometer coastline fringed by a sandy beach. It is the smallest of the seven emirates in terms of physical size covering 259 sq. km, equivalent to 0.3 percent of the country’s total landmass.

Development Activities in Ajman

Ajman has Free Zone specialties.

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.