UAE, Saudi Arabia look to strengthen trade with India
The two richest states in the Persian Gulf region find themselves locked in competition to maximize opportunities for stronger economic ties to Indian markets.
DP World, a leading global company from UAE, has recently launched plans to develop logistics infrastructure in the territory of Jammu and Kashmir in India. Though an initial memorandum of understanding was signed between the government of Dubai and the government of Jammu and Kashmir in 2018, the deal has now been formalized according to an announcement in late October.
DP World chairman and CEO Sultan Bin Sulayem had projected India’s logistics sector to be worth $215 billion in 2020, with 34 logistics parks and 1,300 infrastructure projects underway. Handling a quarter of India’s total container trade volume, DP World had invested over $2 billion in ports and logistics infrastructure.
Another $3 billion will be invested in partnership with India’s National Investment and Infrastructure Fund now. Also, four weekly flights from Srinagar to Sharjah have been started, to boost trade and tourism between the two countries.
Mainly due to geo-economic reasons, New Delhi has been a favorite strategic ally of Riyadh and Abu Dhabi for several years. Saudi Arabia is India’s second largest oil supplier and fourth biggest trading partner, with bilateral trade valued at $27.48 billion in 2017-18. In addition, during Crown Prince Muhammad bin Salman’s visit to India in 2019, potential investments worth $100 billion were announced.
