Many important agreements have been signed between India and UAE.
India and the United Arab Emirates (UAE) announced a dozen agreements, including plans to double bilateral trade to more than $200 billion by 2032, cooperation in the development and deployment of large nuclear reactors and small modular reactors, and an invitation by Prime Minister Narendra Modi to the UAE’s sovereign wealth fund to consider participation in a second infra fund to be launched in 2026.
These agreements were announced at the conclusion of the visit of UAE President Sheikh Mohammed bin Zayed Al Nahyan. The yatra, which was announced informally by government sources on Saturday and formally on Sunday evening, lasted for a little more than three hours. The Indian side described it as a “short but very important visit”. This was Al Nahyan’s fifth visit to India in the last decade and his third official visit as President of the UAE.
The UAE President arrived in Delhi shortly after 4 pm, where Prime Minister Modi personally welcomed him. The Indian side described the welcome as “a symbol of the extremely cordial and close relations that exist between the two leaders”. After this, both the leaders went together from the airport to the Prime Minister’s residence, where discussions were held in limited and detailed formats and many documents were exchanged. During the talks, Modi and Al Nahyan discussed the Gaza Peace Board proposed by US President Donald Trump, in which Trump has invited Modi as a founding member, as well as the situation in Iran.
These were the announcements
- One of the major announcements is a long-term deal for the purchase of 500,000 tonnes of liquefied natural gas per year by Hindustan Petroleum Corporation from Adnoc (Abu Dhabi National Oil Company) gas for 10 years starting from 2028.
- Both sides also announced the establishment of offices and operations of UAE companies, First Abu Dhabi Bank and DP World in Gujarat International Finance Tech-City (GIFT City).
- First Abu Dhabi Bank will open a branch in GIFT City to boost trade and investment relations, while DP World will begin operations at the financial center for its global operations, including ship leasing.
- A Letter of Intent for investment cooperation was signed between the Government of Gujarat and the Ministry of Investment of the United Arab Emirates for the development of Dholera SEZ. The partnership will include the development of key strategic infrastructure including an international airport, pilot training school, maintenance, repair and renovation facilities, a greenfield airport, a small urban township, railway connectivity and energy infrastructure.
- Agreements were signed to further strengthen cooperation in various sectors including space, defence, food security and supercomputing, including assistance in setting up a supercomputing cluster in India with the UAE-based G42. Two
- Both sides also agreed on the possibility of establishing a Digital Data Embassy and ‘House of India’ in Abu Dhabi.
- With the announcement of doubling bilateral trade to over $200 billion by 2032, the focus will be on connecting micro, small and medium enterprises on both sides and promoting new markets through initiatives such as Bharat Mart, Virtual Trade Corridor and India Africa Bridge.
Bilateral trade at present
India and UAE signed Comprehensive Economic Partnership Agreement in 2022. Both sides acknowledged the rapid growth in bilateral trade, reaching $100 billion by 2024-25. The joint statement said that inspired by the enthusiasm of the business communities on both sides, they have set a target of doubling bilateral trade to $200 billion by 2032. The two leaders also directed their teams to work towards interlinking national payment platforms to enable efficient, quick and cost-effective cross-border payments.