Efforts by the United Arab Emirates (UAE) to be removed from the Financial Action Task Force's (FATF) 'gray list' have paid off, as the UAE has been officially removed from the list. The decision to remove the UAE from the gray list was made after a comprehensive review of the country's economy, and it is expected to have significant implications for the UAE's financial sector and investor confidence. The UAE's removal from the gray list is expected to improve investors' trust and confidence in the country, leading to an increase in sustainable capital, foreign direct investment, and portfolio flows. It will also support the expansion of the domestic banking and financial sectors, as well as the international financial free zone. The UAE has made significant progress in combating money laundering, terrorism financing, and weapons proliferation, which has contributed to its removal from the gray list. Exiting the gray list ensures unrestricted access to financial markets, maintains strong correspondent banking relationships, and lowers borrowing costs. The UAE's reputation globally and its ability to combat financial crimes effectively have been reinstated. The UAE's investment prospects have received a boost after its removal from the gray list, with an increase in foreign direct investment. The UAE's next national strategy on anti-money laundering and combating the financing of terrorism (AML/CFT) will be launched in the coming months. [490c8d08]
The UAE ambassador to India, Abdulnasser Alshaali, highlighted the importance of identifying and incorporating new commodities to enhance trade between the two countries. This diversification of traded commodities can expand the scope of economic cooperation and make local currency transactions even more versatile. The India-Middle East-Europe Economic Corridor (IMEC) is expected to play a crucial role in reducing shipping costs and facilitating efficient trade in goods and services. The increasing trend of local currency trade between India and the UAE has the potential to usher in a new era of trade ties between the two nations. The UAE-India Comprehensive Economic Partnership Agreement (CEPA) is a cornerstone of their new foreign trade agenda, eliminating or reducing tariffs on more than 80% of product lines and promoting mutual investment flows. The UAE's strategic geographical location and well-developed infrastructure position it as a key player in enhancing connectivity within the IMEC. Furthermore, the UAE has announced a $2 billion investment in India's 'food parks' to address food security in South Asia and the Middle East. The recent approval of 75,000 tonnes of non-basmati white rice for export from India to the UAE is a testament to the enduring partnership between the two nations. The UAE is also actively working towards making climate finance more affordable, available, and accessible in the context of COP28. [e9f458f5]