Prime Minister’s Visit to the UAE

Prime Minister Narendra Modi visited the United Arab Emirates on 15 May 2026 and held bilateral talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi.

During the visit, India and the UAE signed several important agreements, including:

• A framework for a strategic defence partnership
• Storage of 30 million barrels of crude oil in India’s Strategic Petroleum Reserves
• Supply of Liquefied Petroleum Gas (LPG)
• Development of a ship repair cluster at Vadinar in Gujarat

The UAE also pledged investments worth USD 5 billion in Indian infrastructure projects as well as in RBL Bank and Samman Capital.

The visit formed part of Prime Minister Narendra Modi’s tour of four European countries, with Abu Dhabi serving as a brief stopover.

Evolution of India-UAE Relations

Formal diplomatic relations between India and the UAE were established in 1972, followed by the opening of embassies in Abu Dhabi and New Delhi.

Bilateral ties gained major momentum after Prime Minister Modi’s landmark visit to the UAE in 2015, which was the first visit by an Indian Prime Minister in 34 years.

Since 2014; Prime Minister Modi has visited the UAE seven times, UAE President Sheikh Mohamed bin Zayed Al Nahyan has visited India five times.

Growing Economic Partnership: Bilateral merchandise trade between the two countries crossed USD 100 billion for the first time, reaching USD 101.25 billion in FY 2025–26. Both countries have set a target of increasing bilateral trade to USD 200 billion by 2032.

Investment Cooperation: Investment has emerged as a key pillar of bilateral relations. India and the UAE signed the Bilateral Investment Treaty in February 2024, which came into force on 31 August 2024.

Local Currency Settlement System: The Local Currency Settlement (LCS) system between India and the UAE enables trade and remittances to be settled directly in Indian Rupee (INR) and UAE Dirham (AED). This mechanism helps reduce dependence on the US dollar and lowers transaction costs.

Energy Cooperation

In FY 2024–25, the UAE was:

• India’s fourth largest source of crude oil
• Third largest source of Liquefied Natural Gas (LNG)
• Largest supplier of LPG
• Second largest export destination for India’s finished petroleum products

The UAE is currently the only country participating in India’s Strategic Petroleum Reserve programme.Indian Diaspora in the UAE: Indians constitute the largest expatriate community in the UAE and play a major role in the country’s economy and society. The Indian diaspora remains an important source of remittances to India, contributing positively to India’s foreign exchange reserves despite global economic uncertainties.

Source: PIB