Prime Minister Modi’s Strategic Visit to UAE: Strengthening Bilateral Ties and Economic Partnerships

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Prime Minister Narendra Modi has embarked on a two-day journey to the United Arab Emirates (UAE), where he is scheduled to inaugurate the inaugural Hindu temple, ‘BAPS Mandir’, in Abu Dhabi. Alongside this inauguration, he will address a large gathering of the Indian diaspora and engage in discussions with key leaders of one of India’s significant strategic partners in the West Asian region. Departing from New Delhi at 11:30 am, he is expected to arrive in Abu Dhabi around 4 pm.

The Ministry of External Affairs highlighted the significance of the upcoming visit during a special briefing on Monday. Prime Minister Narendra Modi’s meeting with Abu Dhabi Crown Prince Mohamed bin Zayed Al Nahyan (MBZ) holds particular importance, especially considering their previous encounter in December last year during the Prime Minister’s visit to Gujarat. Foreign Secretary Vinay Mohan Kwatra mentioned that the discussions are expected to result in the signing of several agreements aimed at enhancing cooperation across various crucial sectors, following the bilateral meeting with the UAE leader.

“Over the past nine years, our collaboration with the UAE has flourished across various sectors including trade and investment, defense and security, food and energy security, and education. Our cultural ties and people-to-people connections have strengthened significantly. I anticipate meeting His Highness Sheikh Mohamed bin Zayed Al Nahyan, the President of the UAE, in Abu Dhabi, where we will engage in comprehensive discussions to further advance our Comprehensive Strategic Partnership. Recently, I had the honor of hosting His Highness in Gujarat, where he served as the Chief Guest at the Vibrant Gujarat Global Summit 2024,” Prime Minister Modi stated moments before departing.

PM Modi’s UAE Visit: Strengthening Bilateral Ties

During a press briefing on Monday, Kwatra stated, “We are exploring agreements concerning investments in digital infrastructure and measures for safeguarding and promoting capital flows.” He also mentioned potential cooperation in ports and maritime domains. Emphasizing the significance of digital cooperation, he added, “We are considering agreements for investments in digital infrastructure.” Kwatra highlighted discussions on maritime heritage, fintech products, and railways for potential cooperation. Regarding finalized agreements, he mentioned ongoing deliberations without providing further details.

Additionally, the Prime Minister will meet Sheikh Mohammed bin Rashid Al Maktoum, UAE’s Vice President, Prime Minister, and Defense Minister.

BAPS Mandir Inauguration and ‘Ahlan Modi’ Event

Prime Minister Modi has been invited to the World Government Summit 2024 in Dubai as the guest of honor, where he will deliver a keynote address. Additionally, he will inaugurate the BAPS Mandir, Abu Dhabi’s first Hindu temple. Scheduled to engage with the Indian community at Zayed Sports City, PM Modi looks forward to discussions with His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President, Prime Minister, and Defense Minister of the UAE, focusing on strengthening ties with Dubai.

After Modi’s significant visit to the UAE in August 2015, bilateral relations between the two nations were upgraded to a Comprehensive Strategic Partnership. Subsequently, in February 2022, both countries inked a Comprehensive Economic Partnership Agreement (CEPA), followed by the establishment of a Local Currency Settlement (LCS) System in July 2023, aimed at facilitating cross-border transactions using the Indian Rupee and the United Arab Emirates Dirham (AED). Official data indicates that the bilateral trade between the two countries reached approximately USD 85 billion during the fiscal year 2022-23, cementing their status as key trading partners.

India-UAE trade relations

The UAE stands as one of the top four investors in India, based on foreign direct investments during the fiscal year 2022-23. With a robust Indian community of approximately 3.5 million, the largest expatriate group in the UAE, the bond between the two nations remains strong. Notably, the UAE extended a special invitation to the G20 during India’s presidency of the grouping. In February 2023, the formal launch of the India-UAE-France (UFI) trilateral took place, while in May 2023, with active support from India, the UAE attained dialogue partner status in the Shanghai Cooperation Organization (SCO). Furthermore, on January 1, the UAE became a member of BRICS, aided by India’s backing. The India-UAE defense cooperation has witnessed significant growth in recent years, culminating in the inaugural India-UAE bilateral army exercise ‘Desert Cyclone’ held in Rajasthan in January 2024.