UAE-India Investment Treaty Boosts Economic Ties
India and the UAE have strengthened their economic partnership with the signing of a new bilateral investment treaty and a memorandum of understanding on critical minerals supply chains. These agreements, which came into effect on August 31, 2024, aim to enhance investment protection, promote bilateral investments, and secure vital resource supply chains.
The bilateral investment treaty replaces a previous agreement and includes provisions for arbitration, defines investment protections, and balances investor rights with state regulations. It provides an independent forum for dispute settlement via arbitration, ensuring continuity in investment protection.
Securing Critical Resources
The MoU on critical minerals supply chains involves cooperation in mineral exploration in third countries, aiming to enhance supply chain resilience. This initiative is part of the broader India-Middle East-Europe Economic Corridor (IMEEC) framework and is crucial for both countries as they diversify their economies and secure access to essential minerals used in technology and energy sectors.
Streamlining Trade Processes
During the visit of Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to India, the launch of the India-UAE virtual trade corridor and the MAITRI interface was announced. These initiatives aim to streamline trade, reduce administrative processes and logistics costs, and enhance ease of doing business. The MAITRI interface integrates Indian and UAE portals to optimize efficiencies and regulatory compliance.
