Saudi Arabia’s Ambassador to New Delhi Saleh bin Eid Al-Husseini met Gulf Cooperation Council (GCC) Chief Negotiator Dr. Raja bin Manahi Al-Muraikhi. The meeting took place on February 5, 2026 when the two leaders discussed resuming the stalled trade agreement between India and the Gulf countries. During this, India’s Commerce Minister Piyush Goyal was also present and described this new beginning as beneficial for both the parties.
ℹ: Dubai News: New project worth 100 billion dirhams launched, DIFC Zabeel District will open to the general public in 2030.
What is this new trade agreement?
The main objective of this agreement is to ease trade between India and six Gulf countries (Saudi Arabia, UAE, Qatar, Kuwait, Oman and Bahrain). Both sides have signed the ‘Terms of Reference’ (ToR) at Vanijya Bhawan in Delhi. This simply means that now both the parties will decide on which items the tax will be reduced and which services will be exempted. This conversation was stalled since 2011, which has now been started again with full preparation.
What will be the impact on the trade of India and Gulf countries?
According to statistics, there is currently a trade of about 179 billion dollars between India and Gulf countries. Gulf countries have also invested about $31 billion in India. Sectors like petrol-chemical, agriculture and infrastructure are expected to get big benefits from this agreement.
Food Security: Exchanging food items will be easier and cheaper than before.
Energy: The supply chain of oil and gas will be strengthened, which will maintain energy security.
Investment: It will become easier from both sides to invest money in new companies and big projects.
