UAE and India Discussing Settling Non-Oil Trade in Rupees

  • Publish date: Friday، 20 January 2023
Related articles
UAE Non-oil Foreign Trade Close to AED500 Billion in Q1 2022
H1 Non-Oil Foreign Trade Exceeds AED1 Trillion for First Time in UAE
China-UAE Trade Rises 28% to Exceed $64 bn In 1st 8 Month of 2022

The United Arab Emirates is in early discussions with India to trade non-oil commodities in Indian rupees, Emirati Minister for Foreign Trade Dr. Thani Al Zeyoudi said on Thursday at the World Economic Forum in Davos.

فيديو ذات صلة

This browser does not support the video element.

When approached by Reuters on the matter, Al Zeyoudi was asked whether trade in rupees with India was an option, and he replied "yes, we are in discussion with the Indians". The talks are in early stages and they're related to non-oil commodities, he added.

"We have to be realistic, we are planning our budgets based on (US) dollars so it is not an overnight movement," Al Zeyoudi said. "There is a discussion, not only with India, but we are managing it in a way that does not conflict with the overall interests of the nation."

The large majority of Gulf trade is conducted in U.S. dollars but countries such as India and China are increasingly seeking to pay in local currencies for various reasons, including lowering transaction costs.

In 2022, the UAE signed a wide-ranging free trade agreement with India, one of the biggest trade partners for Gulf Arab oil and gas producers. The UAE's trade deal with India aims to increase bilateral non-oil trade to $100 billion in the next five years.