Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan engaged in pivotal talks at Hyderabad House, marking a significant moment in the deepening strategic partnership between India and the United Arab Emirates (UAE). The Crown Prince’s visit, which began on September 8, symbolizes the growing and multifaceted relationship between the two nations.
External Affairs Ministry spokesperson Randhir Jaiswal emphasized the importance of the visit, stating 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 focused on a wide range of bilateral issues, showcasing the comprehensive nature of the India-UAE relationship and exploring avenues for further collaboration.
The India-UAE partnership has evolved significantly over the years. The relationship was elevated to a Comprehensive Strategic Partnership following Prime Minister Modi’s visit to the UAE in August 2015. This partnership has since been bolstered by key agreements such as the Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022, and the Local Currency Settlement (LCS) System, which was introduced in July 2023. The CEPA aims to facilitate trade and investment, while the LCS System supports transactions in Indian Rupees and UAE Dirhams, reflecting a growing economic synergy.
Economic ties between India and the UAE are robust, with bilateral trade reaching approximately USD 85 billion for the fiscal year 2022-23. The UAE is a major foreign direct investor in India, underscoring the depth of their economic engagement. Additionally, the Indian expatriate community in the UAE, which numbers around 3.5 million, plays a vital role in strengthening the bilateral relationship.
The UAE’s engagement with India extends beyond bilateral agreements into the realm of international diplomacy. The UAE was invited as a special guest during India’s G20 presidency, highlighting its growing influence on the global stage. Furthermore, the India-UAE-France (UFI) trilateral cooperation framework, launched in February 2023, reflects a shared commitment to regional and global issues.
Recent developments in global forums underscore the UAE’s expanding role. The UAE joined BRICS as a member on January 1, 2024, and became a dialogue partner in the Shanghai Cooperation Organisation (SCO) in May 2023. These milestones illustrate the UAE’s increasing global presence and its alignment with India’s strategic interests.
Defence cooperation between the two countries has also seen notable advancements. The first bilateral army exercise, ‘Desert Cyclone,’ conducted in Rajasthan in January 2024, marks a new phase in military collaboration, emphasizing mutual interests in strengthening defence capabilities and operational synergy.
As Prime Minister Modi and Crown Prince Sheikh Khaled continue their discussions, the focus will likely remain on further strengthening this multifaceted partnership. The ongoing dialogue aims to explore new areas of cooperation and deepen the strategic, economic, and cultural ties between India and the UAE. This high-level engagement highlights the shared vision of both nations for a resilient and prosperous relationship, reinforcing their positions as key partners on the global stage.
