'Promotes Economic Openness': UAE Welcomes 'Mother Of All Deals' Between India, EU

Last Updated:January 31, 2026, 13:32 IST

UAE Minister of State Saeed Al Hajeri said the India-EU FTA "reflects the commitment of both sides to promoting free trade and economic openness."

India and the European Union reached a landmark trade deal this week.

The United Arab Emirates (UAE) has welcomed the landmark free trade agreement between India and the European Union (EU), describing it as a significant step towards promoting “economic openness" and supporting sustainable growth.

Earlier this week, India and the EU sealed a free trade agreement, billed as the “mother of all deals", to create a market of two billion people with Prime Minister Narendra Modi and the top EU leadership unveiling a five-year agenda to largely leverage trade and defence in protecting the rules-based world order.

The agreement marked a historic milestone after negotiations relaunched in 2022 (originally launched in 2007 and suspended in 2013). Often called the “mother of all deals," it creates a free trade zone encompassing about 25% of global GDP, positioning India and the 27-member EU bloc for transformative economic integration.

In a recent statement issued by the UAE’s foreign ministry, Minister of State Saeed Al Hajeri said the pact “reflects the commitment of both sides to promoting free trade and economic openness and embodies as a model of economic partnerships that support sustainable growth and shared prosperity".

The UAE also highlighted its own Comprehensive Economic Partnership Agreement (CEPA) with India as an example of an advanced model of strategic trade partnership based on mutual interests, enhanced economic integration and support for sustainable development. Such comprehensive agreements, the minister said, help deliver tangible benefits for all parties.

The country also expressed hope that its own negotiations with the EU would be concluded positively, leading to the signing of a similar agreement between the two sides. The UAE said it would continue to support the expansion of strategic economic partnerships and stronger economic cooperation.

As part of the FTA, India and the EU also inked two crucial pacts — one on security and defence collaboration and another on mobility of Indian talents to Europe. Indian sectors such as textiles, apparel, leather goods, handicrafts, footwear and marine products are set to gain from the FTA, while Europe is set to benefit in areas of wine, automobiles, chemicals and pharmaceuticals, among others.

The India-EU FTA was jointly announced on Tuesday at the 16th India-EU Summit by Prime Minister Narendra Modi, European Commission President Ursula von der Leyen and European Council President Antonio Costa, during the visit of senior European leaders to India.

The European Union remains one of India’s largest trading partners, with bilateral trade in goods and services expanding steadily. In 2024-25, India’s trade in goods with the EU stood at ₹11.5 lakh crore (USD 136.54 billion), including exports worth ₹6.4 lakh crore (USD 75.85 billion) and imports of ₹5.1 lakh crore (USD 60.68 billion). Trade in services between the two sides reached ₹7.2 lakh crore (USD 83.10 billion) during the same period.

(with inputs from PTI)

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