The United Arab Emirates has welcomed the landmark free trade agreement between India and the European Union, calling it a major step toward economic openness and sustainable growth. The agreement which the parties signed on January 27 2026 will establish a market which will benefit two billion people and the parties will spend five years working to improve their trade and defense ties while establishing a system which will govern international relations.

UAE Minister of State Saeed Al Hajeri made a statement in which he praised the agreement because it advances free trade and establishes economic partnerships which help all parties involved to achieve shared success. The UAE showcased its Comprehensive Economic Partnership Agreement (CEPA) with India as an example of trading collaboration which benefits both sides through economic partnership and environmentally sustainable growth.

The FTA includes security agreements and defense agreements which cover special arrangements for Indian professionals to work in Europe. The Indian market will benefit from textiles and apparel and leather goods and handicrafts and footwear and marine products while European markets will benefit from wine and automobiles and chemicals and pharmaceuticals.

The UAE maintained its dedication to worldwide commerce and essential economic alliances by stating that free trade establishes peace and economic growth throughout international trade relationships.