UAE and India discussing settling non-oil trade in Rupees

The United Arab Emirates is in early discussions with India to trade non-oil commodities in Indian rupees, Minister for Dr Thani Al Zeyoudi said in World Economic Forum, Davos. The minister said other countries, including China, had also raised the issue of settling non-oil trade payments in local currencies. He added that the UAE is hoping to conclude a trade agreement with Cambodia in the first quarter.

The move would build on an agreement signed in 2022, which aimed to increase trade excluding oil between the two countries to $100 billion by 2027. Trading in Indias currency would also signal a stark move away from the US dollar, which dominates global commodities markets as well as trade for countries along the Persian Gulf.