India, UAE Join Hands to Support Startups and Innovation

Post by : Bandanpreet Kaur

At a time when countries around the world are forming new trade and economic groups, India and the United Arab Emirates (UAE) have taken a big step to work more closely, especially in the areas of startups and innovation. These two fast-growing countries want to help young businesses grow and create new ideas that can benefit both nations.

India is now seen as a strong country for startups, while the UAE is growing into a global center for innovation. To build a stronger relationship, the two countries have taken their trade deal—called the Comprehensive Economic Partnership Agreement (CEPA)—a step further by launching a special program for startups.

On Tuesday evening, the UAE-India CEPA Council (UICC), along with the UAE Embassy in India, launched the UAE–India CEPA Start-up Series. This program is made to help smart young business minds in India connect with the UAE’s advanced startup ecosystem.

UAE Ambassador to India, Abdulnasser Alshaali, said, “Startups are very important to the UAE-India economic partnership.” He explained that the council wants to help Indian startups grow with support from the UAE, and also make the bond between both countries even stronger through shared innovation.

This launch comes at a time when the economic relationship between India and the UAE is already doing very well. In the financial year 2023–24, trade between the two countries reached USD 83.64 billion, which is a 15% increase from the previous year since CEPA was signed.

Also, India's non-oil exports to the UAE went up by over 20%, and UAE’s foreign direct investment (FDI) into India tripled. It grew from USD 1.03 billion in 2021–22 to USD 3.35 billion in 2022–23, making the UAE India’s fourth-largest investor.

Since the year 2000, UAE investors have put around USD 20 billion into India's economy. This money has helped bring new ideas, grow businesses, and make the partnership between India and UAE even stronger.

To kick off this new cooperation, the CEPA Council also signed several Memoranda of Understanding (MoUs) with top colleges and startup centers. These MoUs are agreements to work together and support new businesses.

Ahmed Aljneibi, the Director of UICC, shared details of the startup series. He said that five top startups from India will be chosen to receive a UAE soft-landing package. This special support will include:

• Business licenses

• Mentorship from experts

• Incubation (space to grow ideas)

• Direct connections with big investors

• Access to innovation hubs and free zones across the UAE

Since the India-UAE CEPA agreement was signed in 2022, both governments have worked to remove problems faced by exporters and business owners. Their main goal is to help businesses grow, create new jobs, and open new opportunities for both countries.

This new startup partnership shows that both India and the UAE believe in the power of young minds, creative ideas, and strong teamwork for a better future.

India-UAE CEPA