New Delhi: Prime Minister Narendra Modi made a brief visit to the United Arab Emirates (UAE) on Friday, but it yielded big returns for India.
The two countries signed Defence, Energy and Infrastructure agreements, and also made investment commitments worth billions of dollars.
Coming as it does at a time of extreme crisis in West Asia and uncertainty in global energy markets, triggered by the US-Iran war, Modi’s visit to the Gulf country is very significant.
Both countries stressed on the need for stability, connectivity and economic resilience amid the ongoing conflict and continuing concerns over disruption to the critical shipping route of Strait of Hormuz.
The biggest headline is the UAE’s decision to invest $5 billion in India.
$5 billion investment — The UAE will invest USD 5 billion, targeted at boosting Indian infrastructure projects. The breakup is $3 billion by Emirates NBD in RBL Bank; $1 billion by Abu Dhabi Investment Authority (ADIA) with NIIF for priority infrastructure projects; $1 billion by International Holding Company in Sammaan Capital.
Agreement on Framework for Strategic Defence Partnership – A major outcome of the PM’s visit was the signing of an Agreement on Framework for the Strategic Defence Partnership between India and the UAE. The agreement focuses on joint development and co-production of advanced defence technologies, deeper intelligence sharing an
d stricter counter-terrorism cooperation.
MoU on Strategic Petroleum Reserves — India and the UAE signed a Memorandum of Understanding (MoU) on Strategic Petroleum Reserves to strengthen our country’s energy security amid volatile crude markets and supply disruptions. It seeks to build on existing partnership, where Abu Dhabi National Oil Company (ADNOC) is the only foreign entity storing oil in India’s underground reserves, with the agreement deepening strategic cooperation, securing a reliable energy supply for India and providing the UAE with a stable, long-term market for its expanded crude production capacity.
Agreement on LPG supplies — India and the UAE signed an agreement on supplies of Liquefied Petroleum Gas (LPG), to ensure stable and long-term energy supplies to India as New Delhi seeks to secure and diversify imports and limit the impact of global price shocks on domestic consumers. Indian Oil Corporation (IOCL) and ADNOC signed the agreement to secure a long-term, prioritised supply of fuel from the UAE.
Ship repair cluster at Vadinar – A Memorandum of Understanding was also signed to set up a Ship Repair Cluster at Gujarat’s Vadinar, which will strengthen India’s maritime infrastructure ecosystem and support its position as a regional hub for ship maintenance and repair.
Foreign Secretary’s statement
India’s Foreign Secretary Vikram Misri said New Delhi and the UAE agreed the framework for a strategic defence partnership as they seek to deepen ties amid the Iran war.
“The two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange,” he said in a statement.