SYLLABUS
GS-2: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.
Context: At the invitation of the Prime Minister of India, the President of the United Arab Emirates, His Highness Sheikh Mohamed bin Zayed Al Nahyan, paid an official visit to India on 19 January 2026.
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• This was the fifth visit of Sheikh Mohamed bin Zayed Al Nahyan to India in the last ten years and his third official visit as UAE President.
• The two leaders welcomed the results of the 13th High-Level Task Force on Investments in September 2025, as well as the 16th India-UAE Joint Commission Meeting and 5th Strategic Dialogue held in December 2025.
Key Outcomes of the visit:
• MSME & Trade Initiatives: Both sides called for the expeditious implementation of key initiatives such as the ‘Bharat Mart’, the ‘Virtual Trade Corridor’ and the ‘Bharat-Africa Setu’ to promote MSME products across the Middle East, West Asia, Africa and the Eurasia region.
• Bilateral trade targets: Bilateral trade under the Comprehensive Economic Partnership Agreement (CEPA) reached USD 100 billion in FY 2024–25, with a joint target to double it to USD 200 billion by 2032.
- CEPA was signed between the two countries in 2022.
• Investment initiatives: The leaders welcomed the positive impact of the Bilateral Investment Treaty signed in 2024.
- The UAE expressed interest in partnering in the development of the Special Investment Region in Dholera, Gujarat.
- The Prime Minister of India invited UAE sovereign wealth funds to consider participation in the second Infrastructure Fund, scheduled for launch in 2026.
- The two leaders also welcomed the establishment of DP World and First Abu Dhabi Bank branches in GIFT City.
• Digital Cooperation: Cooperation in digital governance was advanced through discussions on linking national payment platforms and exploring possibility of establishing ‘Digital Embassies’ under mutually recognised sovereignty arrangements.
- UAE also expressed support for the AI Impact Summit to be hosted in India in February 2026.
• Security Cooperation: The two leaders reiterated a firm and shared condemnation of terrorism in all forms and agreed to strengthen cooperation under the Financial Action Task Force framework.
• Defence Partnership: Both sides welcomed the signing of a Letter of Intent towards concluding a Strategic Defence Partnership and acknowledged strong defence and security cooperation.
• Nuclear Energy Partnership: Both sides agreed to explore cooperation in advanced nuclear technologies, including large reactors and small modular reactors, following the enactment of the SHANTI law.
• Support for global platforms: The UAE conveyed support for India’s BRICS Chairmanship in 2026, while India supported the UAE's co-hosting of the UN Water Conference 2026.
• Energy Security Cooperation: Energy cooperation was reinforced through a ten-year LNG supply agreement between HPCL and ADNOC Gas for the delivery of 0.5 million tonnes per year of liquefied natural gas, starting in 2028.
• Cultural & People to People Links: The two leaders agreed to set up a ‘House of India’ in Abu Dhabi as a lasting testament to India-UAE friendship.
- Prime Minister of India appreciated the UAE’s decision to contribute artefacts to the National Maritime Heritage Complex at Lothal.
- Educational ties were strengthened through support for offshore IIT Delhi and IIM-Ahmedabad campuses, student exchanges and integration of Digilocker with UAE platforms.
• Other Initiatives: Both sides reaffirmed cooperation in polar science, space sector, and emerging technologies, climate action, food security and multilateral forums.

India-UAE relations
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Area of Cooperation
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Key Dimensions of Cooperation
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Political Relations
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· Recent engagements include the UAE President’s participation in the G20
Summit 2023 and the Vibrant Gujarat Global Summit 2024 as Chief Guest.
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Diplomatic Relations
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· Diplomatic ties were established in 1972, with resident embassies
functioning in both countries since the early 1970s.
· Both countries maintain close coordination through structured mechanisms
such as Joint Commission Meetings and strategic dialogues.
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Economic Relations
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· Bilateral trade reached USD 84 billion in 2023–24, making the UAE India’s
third-largest trading partner and second-largest export destination.
· UAE is among India’s top sources of foreign direct investment, with
cumulative inflows of about USD 22 billion and commitments of USD 75 billion
in infrastructure.
· The Local Currency Settlement System using INR and AED has been
operationalised to facilitate trade in commodities such as oil, gold, and
food products.
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Technological Relations
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· Cooperation in infrastructure financing is supported by sovereign funds
such as Abu Dhabi Investment Authority (ADIA), which has also opened an
office in GIFT City, Gujarat.
· India and the UAE collaborate in energy security, with the UAE being a
major supplier of crude oil, LNG, and LPG to India.
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Cultural Relations
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· The UAE hosts a large Indian diaspora of over 4.3 million people,
contributing significantly to cultural exchange and people-to-people ties.
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Source:
Hindustan Times
PM India
MEA
PIB