Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan held a landmark meeting at Hyderabad House, further cementing the strategic partnership between India and the United Arab Emirates (UAE). The Crown Prince’s visit, which began with his arrival on September 8, represents a crucial development in the deepening relationship between the two nations.
The significance of the visit was underscored by External Affairs Ministry spokesperson Randhir Jaiswal, who shared on ‘X’ (formerly Twitter), “A warm welcome for a close friend. PM @narendramodi received HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi at Hyderabad House.” The discussions between the leaders covered a broad spectrum of bilateral issues and explored new avenues for cooperation, reflecting the comprehensive nature of the India-UAE partnership.
Since the elevation of their relationship to a Comprehensive Strategic Partnership following Prime Minister Modi’s visit to the UAE in August 2015, India and the UAE have seen significant advancements in their bilateral ties. Key agreements such as the Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022, and the Local Currency Settlement (LCS) System, introduced in July 2023, have been instrumental in enhancing economic relations. The CEPA aims to boost trade and investment, while the LCS System facilitates transactions between the Indian Rupee and the UAE Dirham, further integrating their economies.
The economic partnership between India and the UAE is substantial, with bilateral trade totaling approximately USD 85 billion for the fiscal year 2022-23. The UAE ranks as one of India’s top foreign direct investors, highlighting the depth of economic engagement. Additionally, the vibrant Indian diaspora in the UAE, which numbers around 3.5 million, plays a crucial role in reinforcing the connection between the two countries.
Beyond bilateral agreements, the UAE’s international presence has been strengthened through its engagement with India. The UAE was invited as a special guest during India’s G20 presidency, a testament to its growing influence on the global stage. The formal launch of the India-UAE-France (UFI) trilateral cooperation framework in February 2023 further underscores the countries’ commitment to regional and global issues.
The UAE’s recent accession to BRICS as a member, effective January 1, 2024, and its role as a dialogue partner in the Shanghai Cooperation Organisation (SCO) since May 2023, highlight its expanding geopolitical influence. These developments reflect the UAE’s alignment with India’s strategic interests and their collaborative approach to global challenges.
In the realm of defence, the India-UAE partnership has also seen significant progress. The first bilateral army exercise, ‘Desert Cyclone,’ conducted in Rajasthan in January 2024, represents a new phase in military cooperation, emphasizing mutual interests in strengthening defence capabilities and operational coordination.
As Prime Minister Modi and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan continue their discussions, the focus is expected to remain on expanding this multifaceted partnership. The ongoing dialogue aims to explore new areas of collaboration and further solidify the strategic, economic, and cultural ties between India and the UAE. This high-level engagement reflects a shared vision for a robust and enduring relationship, positioning both nations as key allies on the international stage.
