PM Modi signs defence and energy pacts with UAE

The agreements, announced after Modi’s talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan, reflected growing convergence between New Delhi and Abu Dhabi on energy security, defence cooperation and regional stability amid the continuing US-Israeli war on Iran and disruptions in the Gulf.

“The way UAE has been targeted is not acceptable,” Modi said during the talks, referring to Iranian strikes on Gulf countries during the conflict. He praised the UAE’s “restraint” in handling the situation and said India was ready to extend “all possible support to bring peace in West Asia”.

The visit came at a time when the closure of the Strait of Hormuz — a key route for nearly a fifth of global oil flows — has rattled energy markets and heightened concerns in India over crude and gas supplies. Against this backdrop, the two sides signed agreements aimed at strengthening long-term energy cooperation and expanding India’s strategic reserves.

A key pact was signed between Indian Strategic Petroleum Reserves Ltd and Abu Dhabi National Oil Company (ADNOC) to enhance UAE participation in India’s strategic petroleum reserves to 30 million barrels and explore cooperation in gas storage facilities. Indian Oil Corporation and ADNOC also concluded an arrangement for long-term supplies of liquefied petroleum gas (LPG), a widely used cooking fuel in India.

The UAE is already among India’s top energy suppliers and New Delhi has been seeking greater supply security as geopolitical tensions roil the Gulf. Ahead of the visit, Indian officials had indicated that Modi was expected to discuss long-term energy supply arrangements and seek support for expanding India’s strategic oil reserves.

The two countries also formally concluded a framework for a strategic defence partnership, signalling a sharper strategic alignment in the Gulf. According to the Ministry of External Affairs, the framework envisages deeper collaboration in defence manufacturing, innovation and advanced technologies, training and military exercises, maritime security, cyber defence, secure communications and information sharing.

The move comes amid shifting regional equations, including Pakistan’s growing defence cooperation with Saudi Arabia and its emerging role as a mediator between the United States and Iran.

Friday’s agreements also extended to maritime infrastructure and technology cooperation. Cochin Shipyard Ltd and Drydocks World Dubai signed an MoU to establish a ship repair cluster at Vadinar in Gujarat, including offshore fabrication facilities under India’s Maritime Development Fund Scheme. Another tripartite agreement focuses on maritime skill development and training.

In the technology sector, India and the UAE agreed to establish an 8-exaflop supercomputing cluster through a partnership between India’s Centre for Development of Advanced Computing (C-DAC) and UAE-based G42, aimed at supporting India’s artificial intelligence ambitions.

The UAE also announced investments worth USD 5 billion in India, underlining Abu Dhabi’s expanding economic footprint in the country. These include Emirates NBD’s USD 3 billion acquisition of a 60 per cent stake in RBL Bank, USD 1 billion by Abu Dhabi Investment Authority with the National Infrastructure and Investment Fund for infrastructure projects, and USD 1 billion investment by International Holding Company in Sammaan Capital of India.

The leaders also welcomed the operationalisation of the Virtual Trade Corridor under the MAITRI digital framework linking customs and port authorities, aimed at reducing cargo transit time and costs.

Modi described the visit as “short but highly productive”, saying the outcomes would deepen the India-UAE Comprehensive Strategic Partnership and contribute to “growth and prosperity” for both nations.