Indian IT firms can tap UAE business potential

Dubai - New deal can help boost software exports, says Vachani

An agreement between the UAE and India in the field of information technology (IT) will help boost software exports and attract fresh investment, said Kamal Vachani, group director, Al Maya Group, and regional director of Electronics and Computer Software Export Promotion Council (ESC) for the Middle East.
His Highness Shaikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, along with UAE ministers and top government officials is in India for a three-day visit, which concludes today.
Both the countries signed several cooperation agreements in different fields. These agreements will bring both the countries closer to each other.
An agreement for cooperation between the IT sectors will be a good opportunity for Indian firms to explore potential in the UAE and use the country as a hub to expand in other Middle Eastern markets, Vachani said.
India's IT industry has become the backbone of the country's growth story and is expected to generate revenues of $160 billion this year.
India's exports of computer software and information technology enabled services (ITeS) are expected to cross the $100 billion mark during fiscal year 2015-16. Last year, software exports stood at $97 billion.
The UAE is India's second top destination for exports of electronics goods, with items worth $440 million exported to the UAE during 2014-15, according to Vachani.
Major electronics items exported to the UAE during 2014-15 were mobile phones, audio-video machines, personal computers, distribution panels, loudspeakers, transformers and parts, telephone sets and parts, physical or chemical analysis and surveying equipments, voltage stabilisers and invertors, and watches and clocks.
India is making a number of efforts to enhance electronics manufacturing within the country. This involves minimising the number of processes and time involved in starting a business and getting necessary approvals, Vachani informed.
He added that the UAE and India enjoy centuries-old relationship and the UAE government delegation's visit will further boost trade and investment opportunities.
"The UAE is India's third largest trading partner. Bilateral trade between the UAE and India is growing substantially and the Abu Dhabi Crown Prince's visit to India will further boost trade and investments and also the socio-economic relationship between India and the UAE," he said.
A recent study by the UAE Ministry of Economy pointed out that India offers many attractive sectors for foreign direct investment (FDI), including in financial and non-financial sectors, such as the services, telecommunication, transport, industry, fuel, chemicals, construction activities, drugs and pharmaceuticals, food processing, cement products, gypsum and electrical equipment.
Total FDI in India in 2014 was nearly $34.4 billion with a growth of 22.1 per cent against $28.2 billion in 2013.
In contrast, Indian overseas investments rose from $1.68 billion in 2013 to nearly $9.8 billion in 2014 at an annual growth rate of 487 per cent, according to the 'Global Investment 2015' report released by the United Nations Conference on Trade and Development.
A large number of UAE and Indian companies have shown interest in investing in both the countries, Vachani said. "I believe the Indian Prime Minister Narendra Modi's visit last August opened doors for further enhancement of the socio-economic relationship of the UAE and India," he added.
- abdulbasit@khaleejtimes.com