"India is one of our most important strategic partners and this deal brings us closer than ever before," UAE de facto leader, Sheikh Mohamed bin Zayed Al Nahyan, said during a virtual summit with India's Prime Minister, Narendra Modi, on Friday.
"This deal promises to provide significant benefits to UAE and Indian businesses, including reduced tariffs and enhanced market access, while also breathing new life into trading corridors from Africa to Asia and laying the foundations for growth and prosperity that will benefit the entire region," he added.
"The Agreement reflects the deep friendship, shared vision and the trust between the two countries. I am sure this will usher in a new era in our bilateral economic relations," Prime Minister Modi said. The partnership marks a deepening of ties between the UAE and India. The UAE is India's third largest trade partner, and bilateral trade is expected to surpass $60 billion in the current financial year. India also ranks as the UAE's number one trading partner for non-oil exports, accounting for nearly 14% of the UAE's total non-oil exports globally.
"There will be tariff elimination on more than 80% of the goods that go to India, and significant economic benefits for both countries by having more market access, new attractions for investments, and creating opportunities in key sectors," Thani Al Zeyoudi, UAE minister of state for foreign trade, told CNBC in an interview on Thursday.