UAE President’s January 19 India Visit Yields Strategic Defense, Trade, and Investment Push

UAE President Sheikh Mohamed bin Zayed Al Nahyan’s brief official visit to India reinforced deepening strategic ties, with leaders agreeing to double bilateral trade to US$200 billion by 2032 and advancing cooperation in defense, energy, technology, and infrastructure.

UAE President Sheikh Mohamed bin Zayed Al Nahyan made a brief three-hour visit to India’s capital at the invitation of Prime Minister Narendra Modi, reinforcing the deepening strategic partnership between the two countries across defense, trade, energy, technology, and infrastructure. All key ministers were present from the UAE side.

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The visit culminated in a joint statement outlining new agreements, investment intentions, and policy directions aimed at forging strategic defense ties, expanding bilateral economic cooperation, promoting MSME-led growth, and positioning India–UAE ties as a platform for engagement in third markets across Eurasia and Africa.

Strategic defense partnership formalized

A key outcome was a Letter of Intent on a Strategic Defense Partnership, under which both sides agreed to work toward a formal framework agreement. The partnership will expand cooperation in:

• Defense industrial collaboration
• Advanced defense technologies and innovation
• Military training, education, and doctrine
• Special operations and interoperability
• Cybersecurity and counterterrorism

This marks a significant step in institutionalizing defense ties between India and the UAE, reflecting shared security priorities in the Indo-Pacific and Middle East regions.

Bilateral trade target set at US$200 billion by 2032

The leaders welcomed the rapid growth in economic ties since the signing of the India–UAE Comprehensive Economic Partnership Agreement (CEPA) in 2022. Bilateral trade reached US$100 billion in FY 2024–25, and both sides agreed to double trade to US$200 billion by 2032.

To support this goal, India and the UAE will focus on linking micro, small, and medium enterprises (MSMEs) through initiatives such as:

• Bharat Mart
• Virtual Trade Corridor
• Bharat-Africa Setu

These platforms aim to promote MSME products across the Middle East, West Asia, Africa, and Eurasia, expanding market access for smaller businesses.

Gujarat’s Dholera SIR to attract UAE investment

A Letter of Intent between the Government of Gujarat and the UAE Ministry of Investment outlines plans for UAE participation in developing the Dholera Special Investment Region (SIR). The proposed partnership covers:

• An international airport
• Pilot training school
• Aircraft MRO facility
• Greenfield port
• Smart urban township
• Railway and energy infrastructure

Dholera is positioned as a major industrial and logistics hub along India’s western corridor.

Energy, LNG, and nuclear cooperation

In the energy sector, Hindustan Petroleum Corporation Limited (HPCL) signed a 10-year LNG supply agreement with ADNOC Gas, covering the purchase of 0.5 million metric tonnes per annum (MMTPA) starting in 2028.

The two sides also agreed to promote civil nuclear cooperation, leveraging India’s SHANTI Act 2025 to collaborate on:

• Large nuclear reactors
• Small Modular Reactors (SMRs)
• Advanced reactor systems
• Nuclear plant operations and safety

This opens the door for UAE participation in India’s nuclear energy expansion.

Space, AI, and supercomputing collaboration

India’s space regulator IN-SPACe and the UAE Space Agency signed a Letter of Intent to develop joint infrastructure for space industry growth, including:

• Launch complexes
• Manufacturing and technology zones
• Incubation and accelerator centers
• Training institutes and exchange programs

In artificial intelligence, C-DAC India and UAE-based G42 agreed in principle to establish a supercomputing cluster in India under the AI India Mission, making advanced computing resources available to both public and private sectors.

Food trade and agricultural exports

An MoU between India’s APEDA and the UAE’s Ministry of Climate Change and Environment sets sanitary and technical standards to facilitate agricultural trade. The agreement aims to boost Indian exports of:

• Rice
• Processed food products
• Other agricultural goods

This will support Indian farmers while enhancing food security in the UAE.

Financial services and logistics in GIFT City

Two major UAE firms will establish operations in GIFT City, Gujarat:

• First Abu Dhabi Bank (FAB) will open a branch to promote trade and investment flows.
• DP World will operate leasing services for its global shipping fleet.

These moves strengthen GIFT City’s positioning as India’s international financial hub.

Digital embassies and cultural cooperation

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India and the UAE will explore the creation of digital/data embassies under mutually recognized sovereignty arrangements, signaling cooperation in data governance and digital infrastructure. They also agreed in principle to establish a “House of India” in Abu Dhabi, featuring a museum of Indian art, heritage, and archaeology to deepen cultural ties.

Youth exchanges to build future ties

Both governments will promote youth exchange programs, enabling student, academic, and research visits to foster long-term people-to-people engagement.

Outlook

The January 19 visit, though brief, produced a wide-ranging set of outcomes spanning defense, trade, infrastructure, energy, technology, and culture. With trade set to double by 2032 and new strategic frameworks taking shape, India–UAE relations are increasingly evolving from bilateral cooperation to a platform for regional and global engagement.

For businesses, investors, and MSMEs, the announcements signal expanded opportunities across logistics, energy, manufacturing, digital infrastructure, space, and cross-border trade corridors linking South Asia, the Middle East, Africa, and Eurasia.

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