Abu Dhabi pledges USD 5 billion investment in India; strategic petroleum reserve partnership expanded
BuzzBytes Desk | Abu Dhabi | May 15
India and the United Arab Emirates on Friday signed a series of major agreements covering strategic petroleum reserves, long-term LPG supply, defence cooperation, shipping infrastructure and advanced technology, while Abu Dhabi announced investments worth USD 5 billion in India during Prime Minister Narendra Modi’s visit to the Gulf nation.
The agreements were finalised during high-level talks between Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan amid growing concerns over the escalating West Asia conflict and its impact on global energy supplies.
One of the key agreements was signed between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company to strengthen India’s energy security through cooperation on petroleum reserves and possible collaboration in LNG and LPG storage infrastructure.
Under the agreement, the UAE’s participation in India’s strategic petroleum reserves will increase to 30 million barrels, while both countries will also explore the establishment of strategic gas reserves in India.
Another agreement between Indian Oil Corporation and ADNOC aims to secure long-term LPG supplies for India and create new opportunities for the sale and purchase of cooking gas.
India and the UAE also signed a framework agreement on strategic defence partnership focusing on defence manufacturing, technology sharing, innovation, maritime security, cyber defence and regional cooperation.
According to the Ministry of External Affairs, the two countries will explore joint development of military hardware and expand cooperation in critical defence sectors.
The agreements come at a time when tensions in West Asia have raised fears of disruptions in crude oil and gas supplies through the Strait of Hormuz, a vital shipping route for India’s energy imports.
Prime Minister Modi described the agreements as “pivotal” and said they would provide a “fresh boost” to the India-UAE Comprehensive Strategic Partnership.
The UAE also committed investments worth USD 5 billion in India, including plans by Abu Dhabi Investment Authority and India’s National Infrastructure and Investment Fund to explore investments of up to USD 1 billion in infrastructure projects.
According to the MEA, Emirates NBD will invest USD 3 billion in RBL Bank, while UAE-based International Holding Company will invest USD 1 billion in Sammaan Capital.
India’s Foreign Secretary Vikram Misri described the visit as a reflection of the “exceptional trust and confidence” between the two nations, particularly in the energy sector.
The two sides also signed agreements related to ship repair infrastructure at Vadinar in Gujarat, coastal development, and skill development in maritime sectors. A separate agreement was signed between Cochin Shipyard Limited and Drydocks World.
In another major development, India and the UAE agreed to establish a supercomputing cluster aimed at strengthening India’s artificial intelligence and high-performance computing capabilities under the country’s AI mission.
The leaders also welcomed the operationalisation of a virtual trade corridor linking customs and port authorities of both countries to improve cargo movement, reduce logistics costs and strengthen supply chain resilience.
During the talks, Modi strongly condemned recent attacks on the UAE and reiterated India’s support for peace and stability in West Asia.
“We condemn the attacks on the UAE. The way UAE has been targeted is not acceptable,” Modi said, while also praising the Emirati leadership for handling the situation with restraint.
The UAE has faced Iranian strikes since the conflict began earlier this year and hosts a major US military base in the Gulf region.
Modi’s visit marked his eighth trip to the UAE in the past 12 years and formed the first leg of his five-nation tour that will also include visits to the Netherlands, Sweden, Norway and Italy.
