UAE-India Relations: Strategic ties forge a stronger future

Indian Ambassador to UAE, Sunjay Sudhir, discusses deepening ties on Independence Day

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President His Highness Shaikh Mohammad Bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi inspect a guard of honour in Abu Dhabi upon Narendra Modi’s arrival at Qasr Al Watan in 2023.
President His Highness Shaikh Mohammad Bin Zayed Al Nahyan and Indian Prime Minister Narendra Modi inspect a guard of honour in Abu Dhabi upon Narendra Modi’s arrival at Qasr Al Watan in 2023.

Over the past year, what have been the notable developments in the bilateral sphere between India and the UAE?

The story of India-UAE relations is marked by a relentless pursuit of new milestones. The past year stands as a testament to this ever-growing partnership. Notably, Shaikh Khalid Bin Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, and Shaikh Hamdan Bin Mohammad Bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister, and Minister of Defence, visited India, underscoring generational continuity and setting the stage for the future of this vital relationship.

Shaikh Abdullah Bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Foreign Affairs, also visited India during this period. From India, several ministerial delegations travelled to the UAE, reflecting the commitment of both leaderships to deepen ties.

These visits fortified collaboration in traditional areas such as trade, energy, connectivity, education, and infrastructure, while also expanding into emerging sectors including polar research, nuclear energy, space, green hydrogen, and critical minerals. A significant highlight was bilateral trade surpassing the $100 billion (Dh367 billion) mark, placing the UAE among a select group of countries with which India maintains such high volumes of trade.

Shaikh Hamdan’s visit earlier this year marked a new phase in the UAE-India relationship. What were the key outcomes?

The visit of Shaikh Hamdan marked a significant moment in India-UAE ties. This was his first official visit to India, where he engaged with the full spectrum of Indian leadership, including President Droupadi Murmu, Prime Minister Narendra Modi, the Defence Minister, the External Affairs Minister, and the Minister of Commerce & Industry.

His visit provided momentum to major initiatives such as Bharat Mart and the establishment of the first overseas campuses of IIM Ahmedabad and IIFT in Dubai. Significantly, in recognition of the Indian community’s contributions to Dubai, a plot of land was allocated for the proposed India-UAE Friendship Hospital. A memorandum of understanding (MoU) for the development of ship repair clusters in Kochi and Vadinar was also signed. The visit reaffirmed the deep-rooted India-Dubai connection.

How are India and the UAE collaborating in the domain of defence and security?

In today’s challenging global environment, India and the UAE maintain robust and strategic defence and security cooperation. This includes capacity-building initiatives, bilateral and multilateral exercises, joint training, and co-development of defence equipment.

During his recent visit, Shaikh Hamdan held in-depth discussions with Indian Defence Minister Rajnath Singh on enhancing cooperation. The Joint Defence Cooperation Committee Meeting and the India-UAE Joint Defence Partnership Forum, both held recently, focused on strengthening industrial collaboration in defence.

This multifaceted engagement is the backbone of the thriving bilateral trade, which recently surpassed $100 billion
Sunjay Sudhir, Indian Ambassador to UAE
Sunjay Sudhir, Indian Ambassador to UAE
Sunjay Sudhir Indian Ambassador to UAE

In 2024, landmark bilateral exercises were conducted — Desert Cyclone (army) in January and Gulf Waves (navy) in October. Additionally, India sent its largest contingent to the UAE-hosted Desert Flag X air exercise. These developments highlight the strategic significance of defence within the comprehensive strategic partnership.

Bilateral trade crossing $100 billion is a significant achievement for the two countries. What initiatives have led to this important milestone?

The visionary leadership of both countries has driven a transformation in their economic relationship. The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed in May 2022, gave a powerful boost to trade. The signing of a Bilateral Investment Treaty in 2024 further solidified ties.

Innovative collaborations in local currency trade settlements, interlinking payment systems, AI, data centres, nuclear energy, food parks, grid connectivity, and critical minerals have created deep economic interdependence. This multifaceted engagement is the backbone of the thriving bilateral trade, which recently surpassed $100 billion.

How do you think the India-Middle East-Europe Economic Corridor (IMEEC) will impact trade and economic relations between India and the UAE and the larger Gulf region?

India’s trade with the Gulf region amounts to $160–180 billion annually, with another $20 billion from the wider MENA region. Over 9 million Indians live in the Middle East, making it a region of immense strategic interest.

IMEEC is envisioned as a transformative initiative to enhance regional trade and connectivity. India and the UAE, grounded in trust and strong economic relations, are ideal partners in this venture. In February 2024, both countries signed an Intergovernmental Framework Agreement on IMEEC. In September 2024, Shaikh Khalid’s visit witnessed the launch of the Virtual Trade Corridor (VTC) and the MAITRI platform, integrating trade portals and enabling paperless transactions.

How do you see people-to-people ties steering the UAE-India relationship?

With over 4.5 million Indians in the UAE, the largest Indian diaspora anywhere in the world, the people-to-people connection forms the foundation of India-UAE relations. Indians have not only benefited from the UAE’s inclusive policies but have also significantly contributed to its development.

The newly inaugurated BAPS Hindu Temple in Abu Dhabi stands as a beacon of these deep-rooted ties. Such enduring bonds between the people of both nations will continue to be the driving force in shaping the future of this comprehensive strategic partnership.

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