UAE applauds India–EU pact, boosting trust, trade, growth
India, EU sign key security pact and talent mobility deal, strengthening trust, opportunity, and people-to-people ties worldwide
The United Arab Emirates has warmly welcomed the landmark free trade agreement (FTA) concluded between India and the European Union, calling it a major step towards strengthening economic openness, sustainable growth, and global prosperity. The agreement, described by many as the “mother of all trade deals,” is being viewed not just as a commercial pact, but as a strategic framework that reflects shifting global economic realities and the growing importance of rules-based cooperation.
India and the European Union formally sealed the agreement on Tuesday, January 27, marking a historic moment in their bilateral relationship. With this deal, the two sides aim to create one of the world’s largest integrated markets, covering nearly two billion people. Prime Minister Narendra Modi and top EU leadership jointly unveiled a five-year agenda that places trade, defence, and strategic cooperation at the centre of efforts to safeguard the global rules-based order.
promoting free trade and economic openness.” He added that the pact stands as a model for economic partnerships that support sustainable growth and shared prosperity, especially at a time when global trade faces uncertainties from protectionism, geopolitical tensions, and supply chain disruptions.
The UAE sees the India–EU agreement as a powerful signal that large economies can still come together to pursue openness, integration, and mutual benefit. According to Emirati officials, such comprehensive agreements help unlock new opportunities, encourage investment flows, and deliver tangible economic benefits for businesses and consumers alike.
Highlighting its own experience, the UAE pointed to the Comprehensive Economic Partnership Agreement (CEPA) it signed with India as an example of a forward-looking and strategic trade partnership. Since its implementation, the UAE–India CEPA has significantly boosted bilateral trade, strengthened economic integration, and created new opportunities across sectors ranging from energy and logistics to technology and manufacturing. The UAE believes this model demonstrates how trade agreements based on mutual interests and long-term vision can support sustainable development and resilience.
Minister Al Hajeri stressed that comprehensive trade agreements are not merely about reducing tariffs. Instead, they help align regulations, improve market access, enhance supply chain connectivity, and build confidence between economies. “Such agreements,” he noted, “play a critical role in delivering real benefits for all parties involved, while also contributing to broader global economic stability.”
The UAE also expressed optimism about its own ongoing negotiations with the European Union. The statement conveyed hope that talks between the UAE and the EU would conclude positively, paving the way for a similar agreement that could further deepen economic ties between the two sides. For the UAE, closer economic cooperation with Europe aligns with its broader strategy of diversifying partnerships and positioning itself as a global trade and investment hub.
Reaffirming its commitment to international trade, the UAE underscored that it will continue to support the expansion of strategic economic partnerships worldwide. Emirati policymakers believe that free trade plays a vital role in promoting stability, prosperity, and innovation—both at the bilateral level and across the global economy. This belief has driven the UAE’s active pursuit of trade agreements with key partners in Asia, Europe, Africa, and the Americas.
Beyond trade in goods and services, the India–EU FTA also includes two crucial accompanying agreements. One focuses on security and defence collaboration, reflecting the growing convergence between India and Europe on strategic and geopolitical issues. The other addresses the mobility of Indian talent to Europe, a move expected to strengthen people-to-people ties, fill skill gaps in European economies, and provide new opportunities for Indian professionals.
These additional pacts highlight the broader scope of the agreement, extending its impact beyond economics into areas of security, innovation, and human capital development. Observers note that such elements are increasingly common in modern trade agreements, which aim to address complex, interconnected global challenges.
The economic benefits of the India–EU FTA are expected to be wide-ranging. On the Indian side, sectors such as textiles, apparel, leather goods, handicrafts, footwear, and marine products are poised to gain improved access to European markets. These industries are labour-intensive and play a key role in employment generation, making the agreement particularly significant for inclusive growth.
Europe, in turn, is set to benefit in sectors including wine, automobiles, chemicals, and pharmaceuticals. Enhanced market access and regulatory cooperation are expected to create new opportunities for European companies while offering Indian consumers greater choice and competitive pricing.
For the UAE, the India–EU agreement reinforces a broader narrative: that open trade, strategic partnerships, and cooperative frameworks remain essential to global economic health. By welcoming the deal and drawing parallels with its own trade initiatives, the UAE has positioned itself as a strong advocate of economic openness and sustainable, shared prosperity in an increasingly complex world.