UAE infrastructure firms show increased interest post UAE-India CEPA

The surge of interest from UAE companies, especially in the infrastructure sector, post the UAE-India Comprehensive Economic Partnership Agreement, is notable, according to a senior executive from a UAE bank. He highlighted the growing attraction of the UAE as a region for Indian exporters to expand into other markets.

Emirates NBD India’s CEO, Sharad Agarwal, expressed their bank’s inclusive approach, stating, “As a bank, we cater to all kinds of companies, whether it is coming from UAE or its Indian corporates. So, we are agnostic.” He emphasized their substantial growth, running a balance sheet close to a billion dollars, albeit still smaller compared to other Indian banks.

Ducab India, a key player in energy solutions from the UAE and part of the Ducab Group, recently signed its first bilateral partnership with Emirates NBD India. This collaboration aims to expand Ducab Group’s wires, cables, and metal solutions in India. Agarwal remarked, “Post the agreement, UAE businesses are increasingly looking at entering the Indian market.”

He noted, “If you see after the signing of the agreement, a lot of good corporations from UAE which are into quality products can set up shops in India. Due to reduced tariffs, these companies can trade or export from the UAE market. A lot of infrastructure-related companies are coming big time in India.”

Agarwal attributed this trend to India’s various Standard Operating Procedures (SOPs) and Production-Linked Incentive (PLI) schemes. “In the case of Indian companies, it’s mostly the exporters who want to approach and target the wider market segment in the Middle East, Africa, and Turkey that are moving to the UAE. It’s mostly the manufacturing segment.”

Through the recent partnership, Emirates NBD will support Ducab’s working capital and capex expansion plans in India, leveraging its project financing expertise. The agreement aligns with the UAE’s strategy to diversify the national economy and boost non-oil trade with global partners.

India consistently ranks among the UAE’s largest global trade partners, with bilateral trade currently valued at around $73 billion.