Context :

• During Prime Minister Narendra Modi’s visit to Abu Dhabi in May 2026, India and the United Arab Emirates signed 6 historic agreements.

Key Points :

• UAE also committed to invest $5 billion (around ₹41,000 crore) in India’s infrastructure and banking sectors.

1. Energy Security :

• Strategic Petroleum Reserve (SPR): An agreement was signed between Indian Strategic Petroleum Reserves Limited (ISPRL) and Abu Dhabi National Oil Company (ADNOC). Under this, UAE will increase crude oil storage up to 30 million barrels in India’s strategic oil reserves (such as Visakhapatnam and Odisha). India will get priority access to this oil during emergencies.
• Long-term LPG Supply: Indian Oil Corporation Limited (IOCL) and ADNOC signed a strategic supply agreement to ensure stability of domestic cooking fuel supply in India.

2. Strategic Defence Cooperation :

• Strategic Defence Partnership Framework: Both countries agreed on defence industrial cooperation, defence manufacturing, advanced technology sharing, joint military exercises, cyber defence, and establishment of secure communication networks.

3. Maritime Infrastructure & Shipping :

• Vadinar Ship Repair Cluster: An agreement was signed between Cochin Shipyard Limited and Drydocks World to establish a modern ship repair cluster at Vadinar in Gujarat. This will support India’s “Make in India” and “Blue Economy” vision.
• Maritime Skill Development: A trilateral skill development agreement was signed to train and enhance the global competitiveness of the Indian maritime workforce.

4. Emerging & Advanced Technologies :

• 8 Exaflop Supercomputer Cluster: India’s Centre for Development of Advanced Computing (C-DAC) and UAE-based tech company G42 signed an agreement to establish an 8 Exaflop supercomputing cluster. This will accelerate India’s National AI Mission.

5. Connectivity & Trade Facilitation :

• Virtual Trade Corridor: Both countries welcomed the operationalisation of the Virtual Trade Corridor under the MAITRI digital framework, which will digitally connect customs and port authorities of both nations. Its objective is to reduce logistics costs and transit time.
• Trade Target: Both leaders reiterated the ambitious target of increasing non-oil bilateral trade to $200 billion by 2032.

6. $5 Billion Investment Framework :

• Emirates NBD: Investment of $3 billion in India’s RBL Bank (largest foreign acquisition stake in India’s private banking sector till date).
• ADIA + NIIF: Abu Dhabi Investment Authority and India’s National Infrastructure and Investment Fund will jointly invest $1 billion in Indian infrastructure projects.
• IHC (International Holding Company): Will make a direct institutional investment of $1 billion in India’s Sammaan Capital.

United Arab Emirates (UAE) :

• A federal semi-constitutional monarchy located on the eastern end of the Arabian Peninsula in the Middle East (West Asia).
• Capital: Abu Dhabi
• Largest City: Dubai
• Currency: UAE Dirham (AED)
• Official Language: Arabic
• President: Mohamed bin Zayed Al Nahyan
• Continent: Asia
• Government System: Federal Monarchy
• Established: 2 December 1971
• Number of Emirates: 7
• Major Emirates: Abu Dhabi, Dubai, Sharjah, Ajman, Fujairah, Ras Al Khaimah, Umm Al Quwain
• National Airlines: Emirates & Etihad Airways
• Major Landmark: Burj Khalifa — World’s tallest building
• Borders: Oman lies to the east and northeast, while Saudi Arabia lies to the west and south.
• Coastal Boundaries: The Persian Gulf lies to its north and the Gulf of Oman to its east.
• UAE is the 7th largest investor in India.
• The Comprehensive Economic Partnership Agreement (CEPA) between India and UAE came into full effect on 1 May 2022.
• UAE is India’s 4th largest crude oil supplier and the largest supplier of LPG.
• UAE is the only foreign participant in India’s Strategic Petroleum Reserve programme.
• Around 3.5 million Indians reside in UAE.