Modi's UAE Visit Secures $5 Billion in Investments and Defence Agreements

Post by : Bianca Suleiman

On Friday, Prime Minister Narendra Modi's visit to the United Arab Emirates culminated in significant discussions with UAE President Mohammed bin Zayed Al Nahyan in Abu Dhabi. This visit marked a pivotal moment in PM Modi’s five-nation diplomatic journey, resulting in noteworthy agreements encompassing defence, energy, technology, trade, and investments.

President Sheikh Mohammed personally welcomed PM Modi at the airport with a formal ceremony, setting the stage for fruitful dialogues aimed at fortifying the India-UAE Comprehensive Strategic Partnership.

During their meeting, PM Modi condemned the recent attacks on the UAE and reaffirmed India's unwavering support for its leadership and citizens. He emphasized the necessity for safe navigation through the Strait of Hormuz, a vital artery for regional and global stability in energy and food security.

Critical Energy Agreements Established

Energy cooperation emerged as a focal point of the visit. India and the UAE formalized a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and the Abu Dhabi National Oil Company (ADNOC), aimed at boosting UAE’s investment in India's Strategic Petroleum Reserves to 30 million barrels.

The two nations also pledged to collaborate on establishing strategic gas reserves in India. Additionally, a long-term agreement between Indian Oil Corporation (IOCL) and ADNOC was reached for LPG supplies.

The leaders acknowledged the UAE’s role as one of India’s most reliable energy allies and agreed to further enhance their energy sector collaboration.

UAE Commits $5 Billion to India

This visit has also led to a significant influx of investments, with UAE stakeholders pledging $5 billion towards various projects in India.

• Emirates NBD is set to invest $3 billion in India’s RBL Bank.

• The Abu Dhabi Investment Authority (ADIA) will contribute $1 billion in collaboration with India’s National Infrastructure and Investment Fund (NIIF) for infrastructure ventures.

• International Holding Company will allocate $1 billion towards Sammaan Capital in India.

India’s Ministry of External Affairs commended these investments, reflecting the UAE's sustained trust in India's economic trajectory.

Strengthened Defence Collaborations

The two nations also formalized a Framework for Strategic Defence Partnership to enhance military and security ties.

This agreement encompasses collaborations in defence manufacturing, advanced technology exchanges, military training, joint drills, maritime security, cyber defence, and secure information sharing.

The leaders marked this as a significant stride in solidifying enduring defence relations.

Agreements in Technology, Trade, and Shipbuilding

In addition, India and the UAE inked multiple agreements in the technology and maritime arenas.

A term sheet was signed between India’s CDAC and UAE-based G-42 for the establishment of an 8 Exaflop Super Compute Cluster, signifying a monumental step in technological collaboration.

Two MoUs involving Cochin Shipyard Limited and Dubai’s Drydocks World were also formalized: one focusing on a Ship Repair Cluster at Vadinar and a tripartite agreement devoted to skill development in maritime and ship repair sectors to position India as a leading global maritime hub.

Both leaders welcomed the launch of the Virtual Trade Corridor under the MAITRI digital initiative, facilitating connections between customs and port authorities to optimize cargo movement, cut costs, and accelerate trade procedures.

The dialogue also underscored the successful implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which has notably amplified trade between the two nations.

PM Modi extended his gratitude to President Sheikh Mohammed for the gracious reception and extended an invitation for a visit to India. Following his visit to the UAE, PM Modi is set to embark on the European leg of his tour, which includes stops in the Netherlands, Sweden, Norway, and Italy, before returning to New Delhi on May 20.

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