Deepening bilateral relations amid the crisis in West Asia, India and the UAE signed a slew of pacts Friday including a framework for a strategic defence partnership, storage of 30 million barrels in Indian strategic petroleum reserves, supply of LPG and a ship repair cluster in Gujarat’s Vadinar. The UAE also pledged investments totalling USD 5 billion in Indian infrastructure and RBL Bank and Samman Capital.
The upswing in ties marked Prime Minister Narendra Modi’s brief stopover in Abu Dhabi on his tour of four European nations, days after the UAE came under Iranian missile and drone attacks.
Underlining that the Strait of Hormuz should be “free, open and safe”, Modi told President Sheikh Mohamed bin Zayed Al Nahyan that India stands “shoulder to shoulder” with the UAE. Criticising the attacks on the Emirates, he said the targeting was “unacceptable”.
Modi expressed India’s support for efforts to restore peace and stability in the region. Addressing the President as “my brother”, he said, “The way UAE has handled the current situation with restraint is praiseworthy. We stand shoulder to shoulder with the UAE, and will do so in the future.”
Noting that the impact of the West Asian conflict is being felt globally, he said, “India is ready to extend all possible support to bring peace in West Asia.”
A statement by the Prime Minister’s Office said, “The two leaders held a series of detailed discussions, during which the Prime Minister reaffirmed India’s strong condemnation of the attacks on the UAE, as well as its solidarity with leadership and the people of the UAE. Prime Minister also conveyed India’s clear position in favour of ensuring safe transit passage and unimpeded navigation through the Strait of Hormuz, which is vital for enduring regional peace and stability, as well as energy and food security.”
He was received at the airport by the President and accorded a guard of honour. In a special gesture, his aircraft was escorted by Emirati Air Force fighters.
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In a social media post, Modi thanked the President for the “gracious gesture” of receiving him at Abu Dhabi airport. He also thanked him for taking care of the Indian community in the UAE like “family members”.
The President said, “The UAE and India share a longstanding strategic and economic partnership, and our discussions today focused on ways to advance cooperation in priority sectors including energy and technology. Together, we remain committed to driving lasting progress for our countries and promoting peace and stability throughout the region and the world.”
Modi’s visit to the UAE came a day after he met Iranian Foreign Minister Seyed Abbas Araghchi who was in New Delhi for a meeting of BRICS Foreign Ministers.
Energy security was a major focus of the visit. The PMO statement said, “The two leaders appreciated the vibrant and growing bilateral energy partnership, with the UAE maintaining its role as an important partner in India’s energy security, including in terms of crude oil, LNG and LPG supplies. The leaders agreed to promote new initiatives for a comprehensive energy partnership. In this context, they welcomed the conclusion of a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company to enhance UAE’s participation in India’s Strategic Petroleum Reserves to 30 million barrels, and work together to set up strategic gas reserves in India. They also welcomed the arrangement entered into between Indian Oil Limited (IOCL) Company and Abu Dhabi National Oil Company (ADNOC) on long-term LPG supplies.”
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Last year, the UAE was India’s fourth largest source of crude oil, meeting nearly 11 per cent of the requirement. The UAE is India’s largest source of LPG, catering to nearly 40 per cent of the requirement.
Also, the UAE has been the first country to partner with India in strategic petroleum reserves. In 2018, the ISPRL and ADNOC entered into an agreement for the UAE to store over 5 million barrels of crude oil reserves at ISPRL’s facility in Mangaluru.
The ISPRL is a specialised Indian public sector company under the Ministry of Petroleum & Natural Gas, responsible for maintaining the country’s strategic crude oil reserves, holding 5.33 MMT (million metric tons) of crude across three underground facilities to ensure energy security against supply disruptions.
Investments by the UAE totalling USD 5 billion will have three major components: Abu Dhabi Investment Authority (ADIA) and National Infrastructure & Investment Fund (NIIF) of India will explore investments up to USD 1 billion in India’s infrastructure sector; Emirates New Development Bank (ENBD) will invest USD 3 billion in RBL Bank of India; and the International Holding Company will invest USD 1 billion in Sammaan Capital of India.
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“These investments underscore UAE’s sustained and long-term commitment to India’s growth story, while strengthening the bilateral strategic investment partnership,” the PMO statement said.
On the defence pact, it said, “The leaders acknowledged the steady and strong bilateral defence cooperation as an important pillar of the Comprehensive Strategic Partnership. They welcomed the signing of the Framework for the Strategic Defence Partnership between the two countries during the visit. Under this, the two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange.”
