PM Modi's Visit to UAE Yields $5B Investment and Defence Agreements

On Friday, Prime Minister Narendra Modi arrived in the United Arab Emirates for a high-stakes meeting with UAE President Mohammed bin Zayed Al Nahyan in Abu Dhabi. This engagement led to pivotal agreements encompassing defence, energy, technology, trade, and investments, marking a highlight of Modi's five-nation diplomatic journey.

Welcomed with full honors at the airport by Sheikh Mohammed bin Zayed, PM Modi engaged in in-depth discussions aimed at reinforcing the India-UAE Comprehensive Strategic Partnership.

During these talks, Modi condemned recent assaults targeting the UAE and underscored India's unwavering support for the nation’s leadership and citizens. He also emphasized the necessity for safe transit through the Strait of Hormuz, crucial for both regional stability and global energy and food security.

Significant Energy Agreements Established

A major focus during the visit was energy security. India and the UAE finalized a Strategic Collaboration Agreement involving Indian Strategic Petroleum Reserves Limited and the Abu Dhabi National Oil Company (ADNOC), enabling increased participation of the UAE in India’s Strategic Petroleum Reserves with up to 30 million barrels.

Additionally, both nations agreed to collaborate on developing strategic gas reserves in India. A significant LPG supply agreement was also executed between the Indian Oil Corporation (IOCL) and ADNOC.

The leaders reaffirmed the UAE's status as a primary energy partner for India in crude oil, LNG, and LPG, and committed to furthering cooperation in this realm.

$5 Billion Investment from the UAE into India

Modi’s visit secured a major financial boost for India, as UAE firms pledged investments totaling $5 billion.

• Emirates NBD will funnel $3 billion into India’s RBL Bank.

• Abu Dhabi Investment Authority (ADIA) will dedicate $1 billion alongside India’s National Infrastructure and Investment Fund (NIIF) towards infrastructure initiatives.

• International Holding Company is set to invest $1 billion in Sammaan Capital of India.

India’s Ministry of External Affairs remarked that these investments signify the UAE’s long-range confidence in India’s economic trajectory.

Enhancing India-UAE Defence Relations

The two nations also put pen to paper on a Framework for Strategic Defence Partnership, aimed at enhancing military and security collaborations.

This agreement entails cooperation in various domains, including defence manufacturing, cutting-edge technologies, military training, joint exercises, maritime security, and cyber defence.

Both leaders viewed the agreement as a significant progressive step toward lasting defence cooperation.

Collaboration in Technology, Trade, and Shipbuilding

Additional agreements were inked in the technology and maritime sectors.

India’s CDAC and UAE’s G-42 signed a term sheet to develop an 8 Exaflop Super Compute Cluster, marking a leap in technological partnerships.

Two Memorandums of Understanding (MoUs) involving Cochin Shipyard Limited and Dubai’s Drydocks World were also established, focusing on maritime skill development and the creation of a Ship Repair Cluster at Vadinar.

The leaders additionally praised the inception of the Virtual Trade Corridor under the MAITRI digital initiative, designed to streamline the flow of cargo and diminish expenses.

The talks also brought focus to the success of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which has significantly boosted trade interactions between the two nations.

Expressing appreciation for the warm reception, PM Modi extended an invitation to Sheikh Mohammed bin Zayed for an official visit to India. Following his UAE tour, he proceeded to Europe, where his agenda includes visits to the Netherlands, Sweden, Norway, and Italy, returning to New Delhi on May 20.