Relations between the UAE and India have been evolving dynamically over the past few years, and the recent visit of India’s Prime Minister Narendra Modi to Abu Dhabi demonstrates this shift. Cooperation in strategic sectors, namely defense and technology, is significant, especially in the context of prevailing uncertainties and the future in a post-war reality.
The conflict in the Middle East has already lasted for more than three months. American and Iranian decision-makers expressed cautious optimism about ending the war, while emphasizing that the ongoing talks do not mean that the “signing of an agreement is imminent”. The United States places emphasis on the full reopening of the Strait of Hormuz, which would restore oil and gas exports to full capacity, as well as negotiating the Iranian nuclear program.
Recently, President Donald Trump made a statement that the Abraham Accords could be linked to Iran negotiations. Published on the Truth Social platform, he claims that “it should be mandatory that all of these Countries, at a minimum, simultaneously sign onto the Abraham Accords. Those Countries discussed are Saudi Arabia, the United Arab Emirates (already a Member!), Qatar, Pakistan, Türkiye, Egypt, Jordan, and Bahrain (already a Member!).”
According to Trump’s narrative, this would be the crowning achievement of America’s efforts to restore stability in the region. The matter is not, however, as simple as it might seem. Many issues in the region remain unresolved, namely the war in Gaza, which is why it would be difficult to reach a normalization agreement with Israel within such a short period of time. At the moment, for particular reasons, it is not feasible to join the agreement, and this matter requires time, as well as the resolution of other remaining issues, to be settled in a way that brings about tangible results.
Amidst the ongoing tensions and negotiations, on May 15th, Prime Minister Narendra Modi paid an official visit to the United Arab Emirates and concluded a series of strategic agreements. This is an important aspect of deepening UAE-India ties, given that Saudi Arabia, a close strategic partner of Abu Dhabi, is simultaneously developing relations with Pakistan and has struck a defense pact that secures its regional position. Regardless of the war and its grave impact on regional stability, these partnerships indicate a recalibration of the Arab Gulf states’ security perceptions.
UAE-India Agreements
During the official meeting, the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, and Prime Minister Narendra Modi agreed to sign several agreements that encompass strategic fields of cooperation. According to a statement from India’s Ministry of External Affairs, both leaders focused on deepening their comprehensive strategic partnership in energy, defense, trade, fintech, and investment.
India and the UAE concluded a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company (ADNOC). This would lead to an increase in India’s crude oil storage to 30 million barrels and the exploration of crude storage in Fujairah, the UAE, in light of existing turbulences in the oil and gas markets. The agreement also includes cooperation on LPG supplies.
The UAE authorities are planning to invest up to $5 billion in India. Emirates’ financial institutions and state-owned investment entities, namely Emirates NBD and Abu Dhabi Investment Authority (ADIA), would be responsible for the investments.
Particular attention is also being drawn to the agreement on bilateral defense cooperation, also known as a pact. Under the Strategic Defense Partnership, leaders of India and the UAE focus on “deepening defense industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defense, secure communications, and information exchange.” Other agreements (Memoranda of Understanding) concern cooperation in maritime industrial development.
The Significance of UAE-India Relations
As it turns out, relations between the UAE and India are strategically important for collaboration in sectors that require mutual trust and a deepened level of partnership. It was also highlighted during the official visit paid by Sheikh Mohamed bin Zayed Al Nahyan to India in January 2026. Among the strategic sectors, space, food security, technology, innovation, and emerging technologies were prioritized by both sides. Given that both India and the UAE have joined the American initiative Pax Silica, which secures global technology supply chains, cooperation within the ecosystem holds significant potential for artificial intelligence development and data center construction.
India remains one of the UAE’s most important trading partners, and according to WITS/World Bank data from 2023, it ranks 2nd in both imports and exports. In 2024, India and the UAE signed the Bilateral Investment Treaty, paving the way for the allocation of foreign capital, namely in real estate, energy, infrastructure, and financial services. The UAE is the seventh largest investor in India and is also among the leading exporters of hydrocarbons, ranking 3rd in crude oil and LNG exports.
One cannot overlook the signed Comprehensive Economic Partnership Agreement (CEPA) that entered into force on May 1st, 2022. It became a catalyst for economic and investment cooperation. According to the UAE’s Ministry of Foreign Affairs, there is approximately a 15% increase in bilateral trade since 2022. Both parties aim to reach $200 billion in trade by 2032.
In recent years, India and the UAE have joined a broader network of international cooperation to implement projects and initiatives aimed at modernizing transport and digital infrastructure, expanding trade corridors, and developing clean energy. These are known as the I2U2 group, which comprises four states – India, Israel, the United States, and the UAE – and the India-Middle East Economic Corridor (IMEC). The latter initiative connects Europe with India through the Middle East. Also, India and the UAE are members of the informal BRICS group.
Both countries have recently strengthened their defense cooperation. It includes joint military exercises, exchange programs, and the development of the defense industry. Additionally, India and the UAE have been designated by the U.S. as Major Defense Partners in 2016 and 2024, respectively.
Outlook
The strategic partnership between the UAE and India spans several areas of cooperation and is a clear example of Abu Dhabi’s diversification strategy. Although it is still unfeasible to predict the end of the war despite the ongoing talks between the U.S. and Iran, the Gulf states are moving forward and undertaking alternative measures to secure their position amid instability.
The establishment of the Strategic Defense Partnership with India demonstrates that the UAE is broadening its security network. Its perception of regional order has changed over time and is also shaped by systemic pressures, interpreted through the lens of challenges and threats to the UAE’s national security. Recent events have shown that the United States’ uncertain foreign policy in the Middle East has prompted its partners to seek additional opportunities for security cooperation.
The situation presents itself differently in the context of economic cooperation. The UAE has established solid foundations within the CEPA framework, with the prospect of inviting new countries to join and broaden economic opportunities. As can be observed, India and the UAE are jointly developing initiatives – such as IMEC – with the potential for further growth in a post-war context. These also include collaboration in advanced technologies and securing global supply chains within the American ecosystem, therefore signaling the prospect of long-term cooperation.
However, given that the Gulf states are developing their own strategically significant resources – with technological advancement serving as a particularly compelling example – it is only a matter of time before the new axis of regional rivalry emerges and reshapes the Middle Eastern order.
