Ducab India and Emirates NBD Ink First Bilateral Partnership for Mutual Economic Growth
The India branch of leading energy solutions provider and manufacturer based in the UAE, Ducab Group, has entered a partnership with Emirates NBD, a prominent banking group in the Middle East, North Africa, and Türkiye (MENAT) Region.
By Lucia Brancaccio
Economic ties between India and the United Arab Emirates (UAE) are set to strengthen following the signing of the first bilateral partnership between the two “National Champion” companies in the UAE, Ducab India and Emirates NBD. The partnership will contribute to driving UAE’s national economy diversification and increasing non-oil trade.
On January 23, 2024, Ducab Group, a major end-to-end energy solutions provider and manufacturing firm in the UAE marked an important milestone as its Indian branch, Ducab India, signed its first bilateral partnership with Emirates NBD, a leading banking group in the Middle East, North Africa, and Türkiye (MENAT) Region.
This agreement builds upon Ducab’s recent progress in the Indian market as the leading provider of high-quality integrated energy solutions, underpinned by the recent establishment of its first office in Bengaluru in early 2023. Aimed at expanding the Group’s reach in the region, the partnership also contributes to the economic growth of both countries.
The bilateral partnership not only signifies a strengthening of cooperation and mutual support between the two companies, but also suggests a bolstering of the economic alliance between India and the UAE. This underlines the pivotal role played by the Group, and national companies at large, in the UAE’s effort to pursue strategic national and global objectives.
Meanwhile, on February 1, the cabinet of the Indian prime minister approved the signing and ratification of a Bilateral Investment Treaty (BIT) between India and the UAE. “The treaty is expected to improve the confidence of investors, especially large investors, resulting in an increase in foreign investments and overseas direct investment (ODI) opportunities”, per an official statement from the Indian government.
Key points of the agreement
The bilateral partnership signed between Ducab India and Emirates NBD marked important developments:
- Financial support: During the meeting, Emirates NBD expressed its commitment to supporting Ducab India’s working capital and capex expansion plans, while also assisting it in financing local projects.
- Assistance in easing market transactions: Emirates NBD further solidified its commitment by aiding Ducab India in leveraging the Local Currency Settlement (LCS) Mechanism. This mechanism, established through a historic memorandum signed between UAE and India, enables the use of the Indian Rupee and UAE Dirham in bilateral trade. By promoting and using the LCS Mechanism, Emirates NBD aims to enhance the ease and efficiency of transactions between Ducab India and its Indian counterparts.
India – UAE relations
The recent signing of the bilateral agreement between Ducab India and Emirates NBD reaffirms a relationship that has spanned several decades. This enduring partnership has played a pivotal role in the expansion of both parties across various markets.
Ducab Group, for instance, has been actively exporting 60 percent of its high-quality solutions to more than 55 markets worldwide, spanning across the Gulf, Asia, Africa, Europe, and the Americas. Simultaneously, it has forged deep ties with Indian industries, importing 25 percent of its materials from India, serving over 100 clients in the country, and employing more than 1,000 Indian nationals, underlying the importance of this revitalized partnership.
This collaboration resonates also with the broader context of the UAE and India’s trade partnership. Over the years, the two countries have fostered a robust economic cooperation, with India holding the position of the second-largest trading partner for the UAE, surpassed only by China. This strategic partnership has been fortified by various initiatives, including the landmark UAE-India Comprehensive Economic Partnership Agreement (CEPA), designed to facilitate investment, promote cross-border trade, and establish new partnerships between the two nations.
It is worth mentioning that the recent bilateral partnership between Ducab India and Emirates NBD reflects the UAE’s goal to diversify its national economy and boost non-oil trade with international commercial partners.