AMN
India and the United Arab Emirates (UAE) are rapidly expanding their strategic partnership, with a new focus on nuclear energy, advanced technology, and resilient supply chains. The momentum comes as bilateral trade has already surpassed $100 billion—five years ahead of target—making the UAE India’s third-largest trading partner.
At an Observer Research Foundation (ORF) Middle East event in Dubai, Indian Ambassador to the UAE, Sunjay Sudhir, emphasized how both nations are moving beyond traditional trade ties, aligning their strengths to build sustainable and future-ready collaborations.
High-level engagements since September 2024, including visits by Sheikh Khalid and Crown Prince Sheikh Hamdan to India, have centered around economic diplomacy. During Sheikh Hamdan’s meeting with Commerce Minister Piyush Goyal, progress under the Comprehensive Economic Partnership Agreement (CEPA) and the Virtual Trade Corridor—part of the India-Middle East-Europe Economic Corridor (IMEEC)—was reviewed. In 2024 alone, UAE investments in India totaled $4.5 billion, out of a cumulative $23 billion.
The shift to local currency trade settlement, now covering 10% of bilateral trade, reflects efforts to reduce dependence on the US dollar. The UAE’s launch of the Jaywan card, based on India’s RuPay infrastructure, and upcoming integration of India’s UPI with UAE’s Aani platform, signals growing fintech collaboration. Plans are also being discussed to link financial messaging systems as an alternative to SWIFT, enabling Central Bank Digital Currency (CBDC) interoperability by late 2025.
Education is another key area, with IIT Abu Dhabi initiating its PhD program, alongside the expansion of IIM Ahmedabad and IIFT into Dubai. Defense cooperation has also gained traction with joint military exercises like Desert Cyclone and participation in global defense expos. Collaboration extends to aerospace components for India’s Tejas aircraft and development of drone systems.
Nuclear energy is emerging as a cornerstone, with the UAE already generating 25% of its power from nuclear sources and targeting a doubling of capacity by 2030. The Partnership for Accelerating Clean Energy (PACE) with the US and synergies with France further enhance this focus.
India and the UAE are also exploring collaboration in critical minerals, space, and polar research. Through initiatives like I2U2 and IMEEC, they’re building food parks and renewable energy projects, while UAE’s entry into BRICS and its CEPA network open new gateways for India in Africa and beyond.
The BAPS Hindu Mandir in Abu Dhabi reflects the cultural warmth between the nations, anchoring a robust and inclusive partnership geared toward shared prosperity in a turbulent world.
