India, UAE agree framework for strategic defence partnership during Modi visit

ABU DHABI: India and the United Arab Emirates agreed on Friday to a framework for a strategic defence partnership during Prime Minister Narendra Modi’s visit, according to a statement issued by India’s foreign ministry, as the two countries move to expand ties during the Iran war.

The ministry said India and the UAE also signed agreements related to strategic petroleum reserves and the supply of liquefied petroleum gas.

Under the defence framework, the Indian foreign ministry said, the two countries agreed to broaden cooperation in defence industry collaboration as well as innovation and advanced technology. The statement added that the partnership would also cover training, exercises, maritime security, cyber defence, secure communications and information exchange.

the two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange.

Before Modi’s visit, Indian sources had told Reuters that the prime minister was expected to discuss long-term energy supply arrangements with the Emirati leadership and seek support for expanding India’s strategic oil reserves.

The UAE’s decision last month to leave the Organization of the Petroleum Exporting Countries is expected to increase its output and support importing countries such as India.

Energy ties deepen amid regional disruption

The developments come as the US and Israeli war on Iran, now in its third month, has unsettled global energy markets following the closure of the Strait of Hormuz, a key route for about 20 per cent of global oil flows.

The conflict has also affected transport and commercial activity across the Gulf after Iranian strikes hit Gulf states, including the UAE, before a fragile ceasefire was reached last month.

India and the UAE had already moved closer on energy and defence earlier this year. In January, New Delhi and Abu Dhabi signed a $3 billion agreement under which India would purchase LNG from the UAE, which is India’s third-largest trading partner. At the same time, the two sides also signed a letter of intent to work towards a strategic defence partnership.

In Friday’s statement, India’s foreign ministry also announced UAE investments worth $5 billion. It pointed to earlier transactions including Emirates NBD’s purchase of a 60pc stake in Ratnakar Bank Limited last year for $3 billion, and a $1 billion investment by Abu Dhabi’s International Holding Company in Sammaan Capital.

The agreements announced during Modi’s visit indicate a further broadening of India-UAE engagement across defence, energy and investment, according to the details released by the Indian foreign ministry.