UAE and India Discussing Possibility of Settling Non-Oil Trade in Indian Rupees

The United Arab Emirates And India Are Discussing Ways To Boost Non-oil Trade Between Their Two Countries. The Gulf Country Is Looking To Strengthen Ties With a Major Trade Partner And Boost Its Economy.

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"We are still in early-stage discussions with India on this dirham-rupee trade," Thani Al-Zeyoudi, the UAE's minister of state for foreign trade, said during a Bloomberg TV interview in Davos, Switzerland, on Friday. "This is only going to be focusing on non-oil trade."
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He said that oil trade in the Indian currency is not under consideration.
The UAE's Minister of State for Financial Affairs echoed the sentiment of Saudi Arabia's Finance Minister earlier this week when he said that the UAE is open to discussions about trade in currencies other than the US dollar. This is a significant shift in policy for the region, and one that could have major implications for the global economy.

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The UAE is looking to increase trade with key partners and signed a number of economic agreements with countries including India, Indonesia, Turkey, Israel and Ukraine last year. According to Al-Zeyoudi, the UAE is expecting to finalize similar agreements with Cambodia and Georgia in the coming months.
India was the UAE's second-largest trade partner in 2021, with bilateral trade totaling nearly $64 billion, according to data from Bloomberg.

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UAE is looking to expand its cryptocurrency offerings, Al-Zeyoudi said. This would allow the country to provide more options for investors and users.

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"Cryptocurrencies will play a major role in UAE trade going forward," said His Highness Sheikh Mohammed bin Rashid Al Maktoum at Davos. "The most important thing is that we ensure global governance when it comes to cryptocurrencies and crypto companies. We started attracting some of the companies to the country with the aim that we'll build together the right governance and legal system, which are needed."

He said that China is our first trade partner and that more trade with China is going to be good for consumers, workers, businesses, and people in general.
He said that the economic agreements are set to boost the UAE’s gross domestic product by 3.4% to 3.8% by 2030.
The UAE and neighboring Gulf countries are expected to weather the looming global recession this year, thanks to the massive oil bounties they collected in 2022 and the measures they have taken since the Covid-19 pandemic.

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Dubai, one of the seven sheikhdoms that make up the UAE, has seen an influx of businesses, entrepreneurs and tourists over the past few years. This trend looks set to continue, as Dubai continues to offer a favorable business and investment climate, as well as a wealth of tourist attractions.

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Al-Zeyoudi said that the UAE is "very immune" to the prospect of a global recession this year. He said that the country did "excellently" last year and is expected to have another excellent year in terms of economic performance.