The United Arab Emirates (UAE) has emerged as an important partner in India’s proactive diplomacy in West Asia, with trade, investment, energy and people-to-people ties as pillars of this partnership. Bilateral ties received a big push when Prime Minister (PM) Narendra Modi visited the UAE in 2015 after a lull of 34 years in diplomatic relations. Three subsequent PM visits to the UAE, and the presence of UAE President Sheikh Mohammed bin Zayed Al Nahyan as chief guest of the Republic Day celebrations in 2017, marked the beginning of a new era of diplomatic relations. The warmth of this relationship was enhanced when PM Modi was honoured with the Order of Zayed, the UAE’s highest civilian award, in 2019. Moreover, diplomatic maturity between New Delhi and Abu Dhabi can be understood by the fact that the UAE stood with India on the issue of the abrogation of Article 370 in Jammu and Kashmir.
The UAE is home to 3.5 million Indians (30% of the Emirate’s population). Indians are the largest expatriate community in the UAE, and their remittances are a significant source of foreign earnings. The UAE has acknowledged the role played by Indians in its economic development, and recently the UAE government allotted 26 acres for the construction of a temple in Abu Dhabi, which speaks volumes about the level of respect the two countries share. In 2019, ignoring Pakistan’s objections, India was invited as a “Guest of Honour” to an Organisation of Islamic Cooperation meeting hosted by the UAE. This invitation resulted in Pakistan boycotting the meeting.
The UAE is India’s third largest trading partner after the United States (US) and China. The UAE and India signed the Comprehensive Economic Partnership Agreement (CEPA) in 2022 to boost bilateral trade and investments. The negotiations were concluded in 88 days, which shows the level of commitment and trust between the two countries. CEPA aims to increase trade between the two countries from $45 billion to $100 billion within five years. The UAE will remove customs tariffs on nearly 80% of Indian goods. It has been estimated that after the agreement, bilateral trade has increased by 30% and that CEPA has the potential to generate one million jobs in India.
India has made upstream and downstream investments in the UAE, which range from offshore and onshore oil exploration to the refinery sector. Recently, a consortium of two Indian oil companies was given exploration rights for an onshore block in Abu Dhabi. The UAE is also seeking investment from India in non-hydrocarbon sectors, which will benefit the local economy and also help Indian firms increase their global footprint. In addition, Abu Dhabi has promised to assist India in building its strategic reserves. The UAE is also financially supporting India’s energy transition programme, which aims at generating 500 GW of renewable energy by 2030. The UAE’s foreign direct investment in India has increased over the past few years and has surpassed $12 billion. Abu Dhabi has invested over $6 billion in big-ticket investments in the Jio platform, Adani, Tata Motors and Tata Power.
{{/usCountry}}India has made upstream and downstream investments in the UAE, which range from offshore and onshore oil exploration to the refinery sector. Recently, a consortium of two Indian oil companies was given exploration rights for an onshore block in Abu Dhabi. The UAE is also seeking investment from India in non-hydrocarbon sectors, which will benefit the local economy and also help Indian firms increase their global footprint. In addition, Abu Dhabi has promised to assist India in building its strategic reserves. The UAE is also financially supporting India’s energy transition programme, which aims at generating 500 GW of renewable energy by 2030. The UAE’s foreign direct investment in India has increased over the past few years and has surpassed $12 billion. Abu Dhabi has invested over $6 billion in big-ticket investments in the Jio platform, Adani, Tata Motors and Tata Power.
{{/usCountry}}Given that the UAE is aspiring to transition from an oil-dependent economy to a knowledge-based economy, the India-UAE relationship has the potential to expand to critical areas such as space, Artificial Intelligence, health, science, technology and innovation. As a result, the nature of Indian investment in the UAE has changed and shifted towards a knowledge-based economy. With India’s strong base in science and technology, the two countries have the potential to transform the nature and scale of their engagement. New Delhi’s decision to establish the first foreign branch of the Indian Institute of Technology in Abu Dhabi is a big step toward technological cooperation. Space is a new thrust area for cooperation. In 2017, the UAE’s first nanosatellite, Nayif-1, was launched with the help of PSLV from Sriharikota. In 2020, the UAE launched its Mars Mission — Hope Probe — which entered Mars’ orbit in February 2021. This made the UAE the first Arab country to achieve this feat.
The bilateral relations have the potential to shape the geopolitics of the region and also on multilateral platforms. After the Abraham Accords, Israel has also improved its relations with the UAE. In addition, Israel’s technological advancement can help both the UAE and India. A unique partnership between these three countries and the US marks the perfect blend of technology, capital and market. The new grouping I2U2 (India, Israel, the UAE and the US) can play a major role in promoting peace and stability in the West Asian region.
India and the UAE have also raised the common concerns of the Global South on various platforms. The UAE is scheduled to host the 28th edition of the Conference of the Parties this year. As India assumed the presidency of the United Nations Security Council in December 2022, the UAE made a strong endorsement of India’s candidature for permanent membership of the Security Council (SC), and expeditious reforms of the SC.
In his address at the India Global Forum in the UAE in 2022, external affairs minister S Jaishankar said that India and the UAE will play a significant role in reshaping the global order. In response, Anwar Gargash, diplomatic adviser to the president of the UAE, described the basis of the India-UAE partnership as a “reservoir of trust”. Under the top leadership of both countries, this reservoir is likely to deepen further.
Vijay Chauthaiwale is in-charge, foreign affairs department, Bharatiya Janata Party The views expressed are personal