PM Modi's UAE Visit Secures Defence Partnership, Oil Agreements, and $5 Billion Investment
During a brief but impactful visit to the United Arab Emirates on Friday, Prime Minister Narendra Modi secured several strategic agreements that bolster India's defense capabilities, energy security, and economic partnerships amid ongoing regional tensions in West Asia. The visit, lasting approximately two hours, was part of Modi's wider tour encompassing five nations, including the UAE, the Netherlands, Sweden, Norway, and Italy.
In Abu Dhabi, the visit achieved significant outcomes in defense industrial collaboration, strategic petroleum reserves, long-term LPG supplies, and maritime infrastructure, alongside investment commitments amounting to USD 5 billion.
Prime Minister Modi engaged in high-level discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan, following a ceremonial welcome. His plane received an escort by UAE F-16 fighter jets as it entered Emirati airspace, highlighting the strong bilateral relations. The talks took place amid heightened tensions in West Asia and concerns about energy supply routes, particularly the Strait of Hormuz. The leaders reviewed the progress of the Comprehensive Strategic Partnership between India and the UAE in areas such as energy, trade, defense, security, fintech, infrastructure, and people-to-people connections.
A landmark achievement of the visit was the signing of the Agreement on Framework for the Strategic Defence Partnership. This agreement enhances bilateral defense cooperation to include joint development and co-production of advanced defense technologies, innovation and technology sharing, training and military exercises, maritime security, cyber defense, secure communications, and intelligence exchange. This framework positions the UAE as a vital partner in India's defense indigenization initiatives.
India made noteworthy strides in energy security through key agreements. The Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and the Abu Dhabi National Oil Company (ADNOC) will increase ADNOC's participation in India's underground strategic crude oil reserves to up to 30 million barrels. ADNOC will maintain ownership of the oil and cover storage costs, while India gains priority access during emergencies. The agreement also explores potential crude storage in Fujairah and the creation of strategic gas reserves.
Additionally, Indian Oil Corporation Ltd (IOCL) and ADNOC signed an agreement for long-term LPG supplies, ensuring greater stability and security for India's domestic LPG needs amid global oil market volatility.
The UAE has announced a USD 5 billion investment package in key Indian sectors:
| USD 3 billion | by Emirates NBD into RBL Bank to expand credit capacity. |
| USD 1 billion | by the Abu Dhabi Investment Authority (ADIA) in partnership with India’s National Infrastructure & Investment Fund (NIIF) for priority infrastructure projects. |
| USD 1 billion | by the International Holding Company into Sammaan Capital, providing liquidity support to the housing finance sector. |
These investments underscore the UAE's confidence in India's economic trajectory, adding to the significant Emirati investment footprint in Indian infrastructure and financial services.
Additional agreements included an MoU between Cochin Shipyard Limited and Drydocks World (Dubai) for establishing a Ship Repair Cluster at Vadinar, Gujarat, and a tripartite MoU for skill development in maritime professions. A term sheet between CDAC (India) and G-42 (UAE) was agreed upon to set up an 8 Exaflop Super Compute Cluster. The Virtual Trade Corridor was also operationalized to digitize and expedite cargo movement.
Prime Minister Modi condemned recent attacks on the UAE, calling them "unacceptable" and expressed India's solidarity with the Emirati leadership and people. He praised the Emirati authorities for ensuring the safety of the Indian community. Modi reiterated India's commitment to resolving regional issues through dialogue and diplomacy and emphasized the importance of keeping West Asia "free, open, and safe" according to international law.
Prime Minister Modi described the UAE as his "second home" and highlighted the strong friendship between the two nations, emphasizing continued cooperation for mutual progress. Bilateral trade has already surpassed USD 100 billion, with plans to reach USD 200 billion in the future. The UAE remains a key partner for energy imports, investment, and people-to-people connections with India.
In conclusion, the visit to Abu Dhabi marked substantial gains for India in defense modernization, energy resilience, and economic investment, reinforcing the strategic partnership with the UAE. The agreements reflect the maturity and depth of India-UAE relations and the effectiveness of high-level diplomacy in advancing national interests. President Sheikh Mohamed bin Zayed Al Nahyan bid farewell to Prime Minister Modi as he departed for the next leg of his European tour.
