The United Arab Emirates (UAE) and India have signed a Memorandum of Understanding (MoU) during the 11th India-UAE high-level joint task force on investments in Abu Dhabi, the capital of United Arab Emirates (UAE). The agreement was signed by UAE’s Minister of Industry and Advanced Technology, Dr. Sultan Al Jaber, and India’s Minister of Commerce and Industry, Shri Piyush Goyal, with the presence of Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority (ADIA).
- India and the UAE have signed an MoU in seven areas such as supply chain resilience, renewable energy and energy efficiency, health and life sciences, space systems, AI, Industry 4.0 and advanced technologies, as well as standardisation and metrology.
- These MoUs align with the UAE-India Comprehensive Economic Partnership Agreement (CEPA), which aims to strengthen the UAE’s role as a trade and logistics hub.
Key highlights of MoU:
i.Supply Chain Resilience:
- Both countries will work together to identify opportunities to supply raw materials and share best practices to incentivize industrial growth.
- This includes various aspects such as energy, land availability, capital expenditure (CAPEX), operating expenditure (OPEX), technology adoption, and labor management.
ii.Renewable Energy and Energy Efficiency
- MoU will focus on advancing energy storage technologies, Smart Grid, Internet of Things (IoT) deployment, and research and development in renewable energy and energy efficiency.
iii.Health and Life Sciences: The partnership aims to develop pharmaceuticals, leverage biotechnology, and engage in research and development in the field of healthcare.
iv.Space Systems:
- The countries will enhance their space industries by collaborating on the development, launch, and use of small satellites for communication and Earth observation.
- This includes space exploration and the licensing of space-related materials.
v.Artificial Intelligence (AI): Both nations will work on advancing machine learning and data analytics capabilities across priority sectors.
vi.Industry 4.0 and Advanced Technologies:
- The parties will strive to work together in implementing Fourth Industrial Revolution (4IR) technologies within industries, including the establishment of smart factories and advanced manufacturing processes.
- MoU will encompass the deployment of Industry 4.0 technologies, real-time data processing, autonomous robotics, and additive manufacturing in key industries.
vii.Standardization, Metrology, Conformity Assessment, Accreditation, and Halal Certification: The two countries will exchange information on procedures, guidelines, and regulated products. They will also aim to harmonize standards with international requirements and mutually recognize conformity assessment results.
Note: The MoU will last for 3 years, with automatic renewal for an equal period unless one of the Parties gives a written notice to terminate it at least 6 months before the expiration date.
India’s NPCI and UAE’s AEP Sign Agreement for RuPay DCS
On October 5, 2023, NPCI International Payments Limited (NIPL) and Al Etihad Payments (AEP) entered into an agreement to implement a Domestic Card Scheme (DCS) in the UAE. This partnership is set to revolutionize e-commerce, digital payments, and financial inclusion in the UAE, leveraging India’s expertise in secure payment systems and its widely acclaimed RuPay card network.
- NIPL: a wholly-owned subsidiary of the National Payments Corporation of India (NPCI)
- AEP: an indirect subsidiary of the Central Bank of UAE (CBUAE)
Objectives:
- To seamlessly integrate India’s Unified Payments Interface (UPI) and the UAE’s Instant Payments Platform (IPP).
- To interlink the card switches of both nations, specifically the RuPay switch from India and UAESWITCH from the UAE.
- The DCS solution offered by NIPL comprises the RuPay stack along with supplementary services, including fraud monitoring and analytics.
- NIPL will play a role in assisting AEP in crafting the operational regulations for their domestic card scheme.
UAESWITCH: The CBUAE introduced UAESWITCH in 1996 to connect the ATM networks of all banks in the UAE.
RuPay: RuPay is a secure, domestically developed card payment network by NPCI that Offers debit, credit, and prepaid card options.
11th High-Level Joint Task Force Meeting:
The 11th High-Level Joint Task Force Meeting between the UAE and India focused on reviewing the progress made on the CEPA and discussed various aspects of bilateral economic cooperation.
Key Points:
i.CEPA Implementation: Started in May 2022 and aimed to enhance bilateral ties by reducing tariffs, removing trade barriers, and fostering investment and partnerships.
- It has helped reduce tariffs on more than 80% of product lines.
- The two countries are working towards achieving a target of $100 billion in non-oil trade by 2030.
The Joint Task Force discussed plans for the ADIA to establish a presence in Gujarat International Finance Tec-City (GIFT City) and invited other Sovereign Wealth Funds in the UAE to do the same in India.
Note: The Joint Task Force was established in 2013 as a key forum to promote trade, investment and economic ties between the UAE and India.
Other Global Partnerships:-
i.In 2022, NPCI signed a MoU with France’s secure online payment system, Lyra.
ii.In 2023, UPI inked an agreement with Singapore’s PayNow
About UAE
President – Mohamed bin Zayed Al Nahyan
Prime Minister – Mohammed bin Rashid Al Maktoum
Capital – Abu Dhabi
Currency – UAE dirham
