**Executive Summary**
Prime Minister Narendra Modi’s visit to the UAE on May 15, 2026, served to advance the bilateral strategic partnership across energy, technology, defense, and maritime sectors. The visit highlighted a record bilateral trade of US$101.25 billion in FY 2025-26 and set a target to reach US$200 billion by 2032. Key action items include the implementation of several Memorandums of Understanding (MoUs) regarding strategic petroleum reserves, supercomputing clusters, and maritime infrastructure.
**Key Points / Main Content**
* **Trade and Investment Framework**
* Bilateral merchandise trade surpassed US$100 billion for the first time in FY 2025-26.
* The Bilateral Investment Treaty, signed in February 2024, became effective on August 31, 2024.
* A Local Currency Settlement (LCS) system is active, allowing trade and remittances to be settled in INR and AED to reduce dollar dependence.
* **Energy Security and Collaboration**
* A strategic collaboration between Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC) aims to enhance India’s hydrocarbon reserves and supply resilience.
* Indian Oil Limited (IOCL) and ADNOC signed an agreement for long-term Liquified Petroleum Gas (LPG) supply security.
* India and the UAE are exploring new opportunities in Liquified Natural Gas (LNG) storage infrastructure.
* **Defense and Technology Partnerships**
* A new Framework for Strategic Defence Partnership was established to encourage joint co-development, technology sharing, and advanced manufacturing.
* CDAC (India) and G-42 (UAE) signed a term sheet to set up an 8 Exaflop Super Computing Cluster to accelerate sovereign AI and the IndiaAI Mission.
* **Maritime Infrastructure and Skill Development**
* Cochin Shipyard Limited (CSL) and Drydocks World (DDW) will establish a Ship Repair Cluster at Vadinar, Gujarat.
* A tripartite MoU between CSL, DDW, and the Centre of Excellence in Maritime & Shipbuilding (CEMS) focuses on specialized technical upskilling for the Indian maritime workforce.
**Impact Analysis**
**Indian Energy Sector (ISPRL & IOCL)**
**Impact**
The sector gains improved resilience against global supply disruptions and market volatility through strengthened petroleum reserves and guaranteed LPG supplies.
**Action Required**
Collaborate with ADNOC to implement storage infrastructure and manage long-term hydrocarbon supply contracts.
**Defense and Technology Industries (CDAC & Strategic Manufacturers)**
**Impact**
These entities will benefit from accelerated high-performance computing capabilities and increased industrial engagement in advanced defense manufacturing.
**Action Required**
Coordinate the technical setup of the 8 Exaflop supercomputing cluster and engage in joint co-development projects.
**Maritime and Shipbuilding Sector (Cochin Shipyard Limited)**
**Impact**
The sector will see a boost in port and coastal infrastructure, positioning India as a global hub for ship repair and specialized maritime professionals.
**Action Required**
Execute the development of the Vadinar Ship Repair Cluster and initiate specialized training programs under the Skill India Mission.
**UAE Investors and Sovereign Wealth Funds**
**Impact**
UAE entities gain a more secure and streamlined environment for diversifying investments into Indian infrastructure, banking, and real estate.
**Action Required**
Leverage the Bilateral Investment Treaty and Local Currency Settlement system for long-term capital flows.
Key Entities Referenced
Bilateral Investment Treaty: An agreement entered into effect in August 2024 to promote and protect cross-border investments between India and the UAE.
Local Currency Settlement (LCS) system: A framework enabling bilateral trade and remittances to be settled in INR and AED, reducing dependence on the US dollar.
Strategic Petroleum Reserve programme: India's energy security initiative in which the UAE is the only participating foreign nation, involving strategic oil storage collaborations.
Framework for the Strategic Defence Partnership: An outcome of the 2026 visit aimed at strengthening industrial cooperation, co-development, and technology sharing in the defence sector.
IndiaAI Mission: A national initiative supported by the partnership between CDAC and G-42 to accelerate India’s sovereign AI and supercomputing infrastructure.
PIB Backgrounder
Prime Minister’s Visit to the UAE
Advancing Energy, Technology, Connectivity and Strategic
Cooperation
Posted On: 15 MAY 2026 8:31PM by PIB Delhi
India–UAE strategic partnership is anchored in political trust, economic cooperation, and people-to-
people connections. Prime Minister Narendra Modi’s visit to the UAE on 15 May 2026 further
strengthens cooperation across energy security, defence, maritime infrastructure, artificial intelligence,
supercomputing, investment, and skill development. The growing convergence between the two
countries across strategic, technological, and economic sectors reflects a shared commitment towards
long-term growth, regional stability, innovation, and future-ready development.
From Historical Ties to a Comprehensive Strategic Partnership
India and the United Arab Emirates share a long-standing relationship shaped by trade, cultural exchanges,
and strong community connections across the Arabian Sea. Trade in pearls, dates, spices, textiles, and
fisheries connected western India with the Gulf region for centuries. Formal diplomatic relations were
established in 1972, followed by the opening of embassies in Abu Dhabi and New Delhi.
Bilateral ties gained new momentum after Prime Minister Narendra Modi visited the UAE in 2015, the
first visit by an Indian Prime Minister in 34 years. PM Modi has visited UAE seven times since 2014 and
UAE President Sheikh Mohamed bin Zayed Al Nahyan has visited India 5 times. During this period,
cooperation has expanded across trade, investment, energy, technology, defence, and the digital economy.
The UAE is now one of India’s largest trading partners, a major energy supplier, and a key investor in
infrastructure and renewable energy.
Trade and Investment ties: Bilateral merchandise trade between the two countries crossed US$100
billion for the first time, reaching US$101.25 billion in FY 2025-26. Both sides have committed to
doubling bilateral trade to US$200 billion by 2032.
Investment has also become a significant component of this bilateral relationship. The two nations signed
the Bilateral Investment Treaty in February 2024 which entered into effect from 31 August 2024. From
April 2000 to March 2025, the cumulative FDI from the UAE into India amounted to US$25.19 billion,
making UAE the seventh-largest overseas investor in India. UAE’s investments are well-diversified with
focus on sectors like real estate, infrastructure, energy, private equity and financial services. UAE’s
Sovereign Wealth Funds (SWF) have a strong presence in India. Local Currency Settlement (LCS) system
between India and the UAE is in place, enabling bilateral trade and remittances to be settled in INR and
AED, reducing dollar dependence and transaction costs.Energy Trade: India and the UAE share a close and dynamic partnership, particularly in the areas of the
hydrocarbon sector. In FY 2024-25, the UAE stood as the fourth largest source of crude oil, third largest
source of LNG, largest supplier of LPG and second largest export destination for India’s finished
petroleum products. Currently, the UAE is the only country participating in India’s Strategic Petroleum
Reserve programme
Bilateral Connectivity: Apart from energy and trade, connectivity and logistics cooperation are also
emerging as important pillars of the bilateral partnership. Both countries are working to strengthen
maritime connectivity
Defence Cooperation: Bilateral defence cooperation between India and the UAE has been steadily
growing in consonance with other domains of the bilateral relationship. It is steered through a Joint
Defence Co-operation Committee (JDCC) at the Ministry level, with the signing of MoU on Defence
Cooperation in June 2003. At Service HQ level, Service (Army, Naval and Air) Staff Talks are held
annually to discuss security and defence cooperation avenues.
People-to-people ties: Indians constitute the largest group of expatriates in the UAE. They form the
backbone of the UAE economy and society. Their wellbeing is important to both countries. Despite the
challenges to the global economy, the diaspora remains a consistent source of remittance to India, having a
positive impact on the forex reserves.
15th May 2026: Prime Minister Visit to UAE
Prime Minister Narendra Modi visited the United Arab Emirates on 15 May 2026 and held discussions
with UAE President Sheikh Mohamed bin Zayed Al Nahyan. The visit reaffirmed the strong momentum in
the bilateral strategic partnership. Both countries committed to expanding cooperation across strategic,
economic, technological, and social sectors. The discussions also emphasized resilient supply chains,
long-term economic collaboration, and growing convergence on regional and global priorities.
Key Outcome and its Strategic Importance
The PM visit marks another significant step in the expanding India–UAE bilateral Partnership. The
outcomes span critical sectors, reflecting the growing strategic convergence between the two countries.
These will strengthen long-term economic resilience, technological collaboration, and regional
connectivity.
Outcome 1: MoU on Strategic Collaboration between Indian Strategic Petroleum Reserves Limited
(ISPRL) and Abu Dhabi National Oil Company (ADNOC)The agreement will strengthen India’s energy security through deeper cooperation in the hydrocarbons
sector. It will ensure reliable access to critical energy resources. The partnership will also enhance India’s
Strategic Petroleum Reserves framework. This will improve resilience against global supply disruptions
and energy market volatility.
The agreement will create new opportunities in Liquefied Natural Gas (LNG) and Liquefied Petroleum
Gas (LPG) storage infrastructure. It will support India’s efforts to diversify energy sources and expand
storage capacity. The partnership will also help build a secure and future-ready energy ecosystem.Outcome 2: Strategic Collaboration Agreement between Indian Oil Limited (IOCL) Company and
Abu Dhabi National Oil Company (ADNOC) on supplies of Liquified Petroleum gas (LPG)
The collaboration will strengthen India’s long-term LPG supply security. It will ensure a stable and
reliable energy source for domestic demand. The initiative will also deepen strategic energy cooperation
between both countries. It will further reinforce the UAE’s position as one of India’s most trusted energy
partners.
Outcome 3: Framework for the Strategic Defence Partnership
The framework will strengthen defence industrial cooperation between both countries. It will encourage
joint partnerships, co-development, and greater industry engagement. The agreement would also promote
innovation and technology sharing in strategic sectors. This will support cooperation in advanced defence
manufacturing and capabilities. At the broader level, the partnership is expected to enhance national and
regional security cooperation.
Outcome 4: MoU between Cochin Shipyard Limited (CSL) and Drydocks World (DDW) on setting
up Ship Repair Cluster at Vadinar, GujaratThe initiative will boost shipping, port, and coastal infrastructure development. It will strengthen India’s
position as a growing maritime and logistics hub. The collaboration will also improve the maritime
logistics ecosystem. It will enhance ship repair and allied industrial capabilities. This will support efficient
trade and connectivity. The partnership will also advance the Make in India initiative. It will promote
domestic manufacturing, infrastructure development, and indigenous maritime capabilities.
Outcome 5: MoU between Cochin Shipyard Limited (CSL), Drydocks World (DDW) and Centre of
Excellence in Maritime & Shipbuilding (CEMS) on Skill Development in Ship RepairThe arrangement will strengthen the capabilities of the Indian maritime workforce. It will support
specialised training, technical upskilling, and capacity-building in shipbuilding and ship repair. The
initiative will also support India’s emergence as a global hub for skilled maritime professionals. It will
strengthen industry-ready expertise and expand opportunities in the maritime sector. The collaboration
also aligns with the objectives of the Skill India Mission. It will help create a future-ready workforce for
the evolving global maritime industry.
Outcome 6: Term Sheet for setting up 8 Exaflop Super Computing Cluster in partnership between
CDAC, India and G-42, UAE
The partnership will accelerate India’s sovereign AI and high-performance computing capabilities. It will
strengthen the country’s supercomputing infrastructure. The collaboration will also boost the IndiaAI
Mission. It will support digital innovation, AI research, and next-generation technological development.Outcome 7: Investment from UAE to India
The investment commitments will strengthen economic and financial cooperation between both countries.
They will boost investments in India’s infrastructure and banking sectors. The commitments will also
enhance long-term capital flows and investor confidence. They will support India’s economic
development and infrastructure expansion goals.
Overall, the outcomes of the Prime Minister’s visit reflect the transformation of bilateral ties into a future-
oriented strategic partnership. The cooperation is anchored in trust, innovation, and shared prosperity. The
agreements deepen collaboration across traditional sectors such as energy, trade, and defence. They also
open new opportunities in frontier technologies, logistics, digital infrastructure, and advanced
manufacturing.
Towards a Future-Ready India–UAE Partnership
The relationship between India and the UAE has transformed from traditional trade linkages into a wide-
ranging strategic partnership. Sustained political engagement and economic cooperation have driven this
transformation. Today, the partnership spans energy security, trade, technology, investment, and defence
cooperation.
The outcomes of the Prime Minister’s 2026 visit have further strengthened bilateral ties. They expand
cooperation in emerging technologies, maritime infrastructure, artificial intelligence, and strategic
industries. As both countries align their economic and geopolitical priorities, the partnership is expected to
play a larger role in regional stability, economic growth, and technological advancement in the coming
years.
References:
1. Ministry of External Affairs
https://www.mea.gov.in/Portal/ForeignRelation/India_UAE2024n.pdfRandhir Jaiswal, Official Spokesperson, Ministry of External Affairs (MEA) https://x.com/i/status/2
055211070340641206
2. Press Information Bureau
https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2261385®=3&lang=2
Click here to see pdf
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