Modi In Abu Dhabi to Woo the Sheikhs as Iran Bleeds
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Prime Minister Narendra Modi visited the UAE on 15
May 2026 to deepen cooperation in energy, defence, technology, connectivity,
and investment.
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India and the UAE crossed $100 billion in bilateral
merchandise trade for the first time, reaching $101.25 billion in FY26. Both
countries aim to raise trade to $200 billion by 2032.
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UAE became the seventh-largest foreign investor in
India, with cumulative FDI of $25.19 billion between April 2000 and March 2025.
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India and the UAE operationalised the Local
Currency Settlement (LCS) system, enabling trade and remittances in INR and AED
to reduce dollar dependence.
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UAE remains a key energy partner for India:
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Fourth-largest source of crude oil,
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Third-largest source of LNG,
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Largest supplier of LPG,
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Second-largest destination for India’s petroleum
exports.
Key
Outcomes of the Visit
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India’s Indian Strategic Petroleum Reserves Limited
and Abu Dhabi National Oil Company signed an MoU to strengthen India’s
strategic petroleum reserves and energy security.
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Indian Oil Corporation Limited and Abu Dhabi
National Oil Company agreed on long-term LPG supply cooperation to ensure
stable energy supplies.
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Both countries launched a Framework for Strategic
Defence Partnership to boost joint defence manufacturing, technology sharing,
and regional security cooperation.
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Cochin Shipyard Limited and Drydocks World signed
an agreement to establish a ship repair cluster at Vadinar,
Gujarat, strengthening maritime infrastructure and logistics.
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A separate maritime skill-development pact was
signed between CSL, Drydocks World, and CEMS to train skilled manpower in
shipbuilding and repair.
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India’s Centre for Development of Advanced
Computing and UAE-based G42 agreed to develop an 8 Exaflop supercomputing
cluster to strengthen India’s AI and high-performance computing capabilities.
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UAE investment commitments are expected to support
India’s infrastructure, banking, and long-term economic growth.
Strategic
Importance
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The visit reinforced India-UAE cooperation in:
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Energy security,
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Artificial intelligence,
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Maritime connectivity,
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Defence manufacturing,
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Digital infrastructure,
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Advanced technologies.
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The partnership is increasingly viewed as central
to regional stability, economic growth, and technological advancement.