How UAE-India currency deal help businesses in both countries

How UAE-India currency deal help businesses in both countries

Dubai: The latest agreement between the UAE and India to allow businesses in the two countries to invoice and pay for goods and services in their domestic currencies - the Indian rupee (INR) and the UAE dirham (AED) - will have a far reaching impact on the trade and manufacturing sectors in both countries, experts have said. A second MoU to interlink the two countries’ payment systems (UPI and IPP) was also signed during Indian Prime Minister Narendra Modi’s recent visit to Abu Dhabi. The deals will play a significant role in achieving the targets set by the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which aims to boost bilateral trade to $100 billion in the next five years, strengthening supply chains. Faizal Kottikollon, Chairman of KEF Holdings and of the UAE- India Business Council – UAE Chapter (UC), called the pact ‘groundbreaking’ for several reasons. “I foresee this to have ripple effects in the larger subcontinent and Middle East region,” he said. The deal’s impact will help overcome a major bottleneck in trade transactions, said Adeeb Ahamed, Managing Director, Lulu Financial Holdings. Kami Viswanathan, FedEx Express Senior Vice-President of Middle East, Indian Subcontinent and Africa Operations, said, “The deal eliminates