The United Arab Emirates has welcomed the free trade agreement reached between India and the EU, describing it as a significant step towards promoting “economic openness” and supporting “sustainable growth”.

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India and the European Union on Tuesday (January 27, 2026) sealed a landmark 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.

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 statement further expressed hope that the UAE’s ongoing negotiations with the EU would be concluded positively, leading to the signing of a similar agreement between the two sides.

Reaffirming its commitment to international trade, the UAE said it would continue to support the expansion of strategic economic partnerships and stronger economic cooperation, driven by its belief in the vital role of free trade in promoting stability and prosperity at both bilateral and global levels.

As part of the free trade agreement (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.