India has said a key investment protection treaty to be inked this week with the UAE, the tenth largest investor in the country in terms of FDI, will help regain investor confidence and ensure protection of bilateral investments.
The agreement with the UAE will be signed on Wednesday in New Delhi during an official visit by UAE Foreign Minister Sheikh Abdullah Bin Zayed Al Nahyan.
"India and UAE have historic ties. The relationship is important for both the countries. Both sides have worked hard to get this agreement ready that will regain investor confidence," outgoing ambassador M K Lokesh said at the farewell lunch organised by Indian Business and Professional Council Dubai (IBPC) on Sunday.
He said BIPA will provide a comprehensive framework to investors from both countries and ensure promotion and protection of bilateral investments.
The UAE has investment interests in India mainly through Emaar and Etisalat while India has varied investment in the UAE, surpassing 200 billion dirhams, figures released by IBPC said.
The UAE is the tenth largest investor in India in terms of foreign direct investments, according to official figures.
The bilateral trade between the two sides goes back to centuries, with India now among the UAE's biggest trading partners. The bilateral trade had reached USD 75 billion in 2012-2013, bilateral investments had not matched the level of trade.
"The landmark agreement will be a fitting farewell gift to the ambassador, whose 43-month tenure has seen trade between the two countries almost double from 161.5 billion dirhams three years ago to 275.25 billion dirhams," Paras Shahdadpuri, IBPC president said.
"This is a golden era of India-UAE relationship and Ambassador Lokesh has played a key role in improving the relationship further," he said.
