India and the UAE on Friday finalized key agreements on defense cooperation, long-term LPG supplies, strategic petroleum reserves and shipping, with Prime Minister Narendra Modi condemning the recent attacks on the UAE and vowing that India will stand “shoulder to shoulder” with the UAE.
India has criticized Iranian attacks on energy infrastructure and other facilities in the UAE amid the US-Israel war on Iran. Modi’s brief stop in Abu Dhabi at the start of a four-nation European tour came on a day when a meeting of BRICS foreign ministers hosted by India could not reach a consensus on a joint statement due to differences between Iran and the UAE.
In a meeting with UAE President Mohammed bin Zayed Al Nahyan – whom Modi referred to as “my brother” – the Prime Minister criticized the recent attacks on the UAE and conveyed India’s steadfast support in difficult circumstances. He said: “We strongly condemn the attacks on the UAE. The way the UAE was targeted is unacceptable.” He added that India stands shoulder to shoulder with the UAE in all circumstances and will continue to do so in the future.
Noting that the war in West Asia affects the entire world, he said that India has always given priority to resolving problems through dialogue and diplomacy. He also praised the restraint, courage and vision of the UAE President in handling the situation and stressed that remaining the Strait of Hormuz “free, open and secure” is one of India’s top priorities.
Modi said: “India is ready to provide all possible support to restore peace and stability as soon as possible.”
Ensuring India’s energy security amid the turmoil caused by conflict in West Asia was one of the main objectives of Modi’s visit to the UAE, and among the six agreements finalized by the two sides was a strategic cooperation agreement between Indian Oil Corporation Limited (IOCL) and Abu Dhabi National Oil Company (ADNOC) to explore long-term supplies of LPG, a widely used cooking fuel in India.
Another memorandum of understanding between ADNOC and the Indian Strategic Petroleum Reserves Limited (ISPRL) stipulates the possibility of storing up to 30 million barrels of Indian strategic reserves. This includes ADNOC’s participation in facilities in Vishakhapatnam and development of reserve facilities in Odisha, potential storage of crude oil in Fujairah in the UAE as part of India’s strategic reserves, and potential collaboration on LNG and LPG storage facilities in India.
The two sides also finalized a strategic defense partnership framework covering defense industrial cooperation, advanced technology, training, exercises, education, doctrine, special operations, interoperability, maritime security, cyber defence, secure communications and information exchange.
What the agreement says
An MoU between Cochin Shipyard Limited (CSL) and Drydocks World (DDW) in the UAE will lead to the establishment of a ship repair cluster in Vadinar, while another MoU between CSL and DDW focused on skills development in ship repair. The two sides also agreed to establish an “8 Exaflop Super Computing Cluster” in partnership between the Indian CDAC and the UAE’s G42.
The Abu Dhabi Investment Authority (ADIA) and the National Infrastructure and Investment Fund of India will explore investments of up to $1 billion in Indian infrastructure, while Emirates NBD will invest $3 billion in India’s RBL Bank. The UAE International Holding Company also intends to invest one billion dollars in Salman’s Indian company, according to an official statement.
The two leaders also welcomed the activation of a virtual trade corridor linking customs and port authorities on both sides to simplify the movement of goods, reduce logistical costs and reduce transit time. This corridor is expected to deepen trade integration between the two countries by improving customs coordination and shipping efficiency.
Modi, who was received by the UAE President upon his arrival, described the agreements between the two sides as pivotal for vital sectors such as energy, defence, infrastructure, shipping and advanced technologies, and said that they would strengthen the bilateral comprehensive strategic partnership.
Modi said in a social media post that investment pledges worth $5 billion will also deepen economic ties.
The UAE was the first stop on Modi’s tour, which will also take him to the Netherlands, Sweden, Norway and Italy. He will co-chair the India-North Summit while in Norway.
