'UAE, India in talks to settle non-oil trade in rupees'

The United Arab Emirates is in early discussions with India to trade non-oil commodities in Indian rupees, Emirati Minister for Foreign Trade Dr Thani Al Zeyoudi said on Thursday. The UAE signed a wide-ranging free trade agreement last year with India, which, along with China, is among the biggest trade partners for Gulf Arab oil and gas producers, most of whose currencies are pegged to the US dollar.

Al Zeyoudi, asked by Reuters whether trade in rupees with India was on the table, replied "yes, we are in discussion with the Indians". The talks are related to non-oil commodities, he added. "They are in the early stages," he said in an interview on the sidelines of the World Economic Forum in Davos.

The UAE's trade deal with India aims to increase bilateral non-oil trade to $100 billion in the next five years.