A high-level UAE-led business delegation is visiting Kashmir, as Pakistan gears up for the OIC summit. The delegation includes CEOs of more than 30 companies, including Saudi and Indian entrepreneurs; and the 4-day trip comes a month after Abu Dhabi and New Delhi signed a trade agreement aimed at deepening ties.
Also read & watch| Crypto SIP: The latest for the investment enthusiasts
What's in it for India? A lot.
The Indian government last year announced that Dubai would invest in infrastructure and other projects in Jammu and Kashmir.
In January this year, J&K L-G Manoj Sinha signed major investment deals with several UAE-based companies, including the LuLu Group, Al Maya Group, among others, at the Dubai Expo.
A memorandum of understanding was also signed with Century Financial for a $100m investment by the Dubai-based financial consultancy firm.
On top of that, in February, the UAE and India signed a free trade agreement that cuts duties on almost 90% percent of goods traded between them, including metals, minerals, petrochemicals and petroleum.
The deal alone is expected to double bilateral non-oil trade to $100bn within five years.
There's more. Recently, the UAE’s Emaar group signed an agreement with the Jammu and Kashmir government to develop a 500,000-square feet shopping mall in Srinagar. Emaar is UAE's biggest real estate developer and the investment is expected to pave the way for further investments.
The visit is a win-win for India, and here's why.
This investment by the UAE is the biggest FDI inflow by any foreign government since Jammu and Kashmir’s autonomy was revoked in 2019 and the state was divided into two union territories.
Why does UAE’s investment in J&K matter?
Interestingly, the United Arab Emirates was one of the first countries that had responded 'favourably' to India’s decision to scrap Article 370.
The UAE ambassador to India, Dr Al Banna, had then said, the reorganisation of states was mainly aimed at reducing regional disparity and improving efficiency. He viewed the decision as an “internal matter” of India.
Experts are calling UAE's foray into J&K, a diplomatic and political masterstroke.
UAE investing in J&K is a validation of New Delhi's Kashmir policy.
It is also a signal to Pakistan which has been harping on the propaganda narrative on Kashmir.
The message to Pakistan is clear: focus on building strong relations with India, for your own good.