UAE, India Leaders Discuss Strengthening Bilateral Cooperation in Phone Call

UAE and India Strengthen Strategic Partnership as Modi Reaches Historic Milestone

UAE President Sheikh Mohammed bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi have reaffirmed their commitment to deepening bilateral ties during a phone call that coincided with Modi's achievement of becoming India's second longest-serving consecutive Prime Minister. The discussion focused on expanding their comprehensive strategic partnership across multiple sectors, signaling continued momentum in one of the Middle East's most significant economic relationships.

A Partnership Built on Economic Pragmatism

The UAE-India relationship represents more than diplomatic courtesy—it's a calculated economic alliance that has delivered tangible results for both nations. Trade between the countries reached $85 billion in 2022-23, making India one of the UAE's largest trading partners and the UAE India's third-largest trading partner globally.

This partnership gained significant momentum with the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, which eliminated tariffs on 80% of goods traded between the nations. The agreement was designed to boost bilateral trade to $100 billion within five years, a target that appears increasingly achievable given current trajectories.

Strategic Timing and Regional Context

The timing of this high-level engagement reflects broader regional dynamics. As global supply chains continue to restructure post-pandemic, both nations are positioning themselves as reliable partners in an increasingly fragmented world economy. The UAE's role as a gateway to Africa and the Middle East complements India's manufacturing capabilities and vast domestic market.

Modi's Political Longevity and Policy Continuity

Modi's historic achievement as India's second longest-serving consecutive Prime Minister—surpassed only by Jawaharlal Nehru—provides the UAE with confidence in policy continuity. This stability is crucial for long-term infrastructure projects and investment commitments that require decades to mature.

The congratulations from Sheikh Mohammed bin Zayed underscore the personal relationships that often drive Middle Eastern diplomacy, but more importantly, they signal the UAE's bet on India's continued economic trajectory under Modi's leadership.

Investment Flows and Future Opportunities

The UAE has emerged as one of India's largest sources of foreign direct investment, with Emirati sovereign wealth funds and private investors particularly active in India's technology, renewable energy, and infrastructure sectors. Abu Dhabi Investment Authority and other UAE entities have committed billions to Indian startups and established companies.

Conversely, Indian companies have found the UAE an attractive base for regional expansion, with over 3.5 million Indians residing in the Emirates contributing significantly to both economies through remittances and business activities.

Energy Transition and Green Economy

Both nations are heavily invested in the global energy transition, creating new avenues for cooperation. The UAE's expertise in renewable energy development, demonstrated through projects like the Mohammed bin Rashid Al Maktoum Solar Park, aligns with India's ambitious solar and wind energy targets. This convergence of interests extends beyond trade to technology transfer and joint ventures in third countries.

Implications for Regional Balance

The strengthening UAE-India partnership occurs against the backdrop of shifting regional alliances and China's growing influence in South Asia and the Middle East. For the UAE, deeper ties with India provide economic diversification away from traditional Western markets while maintaining strategic autonomy.

For India, the relationship offers access to Middle Eastern capital and serves as a counterbalance to Chinese influence in the Indian Ocean region. This dynamic mirrors similar partnerships the UAE has cultivated with other major economies, reflecting its strategy of economic diplomacy over political alignment.

The sustained momentum in UAE-India relations, punctuated by regular high-level engagements, suggests both nations view this partnership as fundamental to their long-term economic strategies rather than merely opportunistic cooperation.