Prime Minister Narendra Modi’s official visit to the United Arab Emirates on 15 May 2026 marked a significant deepening of bilateral ties, particularly in the domains of defence and energy.
He was received by President Mohamed bin Zayed Al Nahyan at the Presidential Airport in Abu Dhabi, underscoring the ceremonial importance attached to the occasion.
The Indian Ministry of External Affairs announced that both nations had agreed on the framework for a strategic defence partnership, a move that comes against the backdrop of the ongoing Iran war and the shifting geopolitical landscape in West Asia.
The defence partnership framework encompasses a wide spectrum of cooperation. It includes defence industrial collaboration, innovation and advanced technology, joint training and exercises, maritime security, cyber defence, secure communications, and enhanced information exchange.
This comprehensive approach reflects the intent of both sides to institutionalise defence cooperation beyond traditional military ties, embedding it within industrial and technological ecosystems.
The agreement builds upon earlier understandings, including a letter of intent signed in January to work towards a strategic defence partnership, and is seen as a counterbalance to the defence accord signed between Pakistan and Saudi Arabia last year.
Energy cooperation formed the second pillar of Modi’s visit. India and the UAE signed pacts on strategic petroleum reserves and the supply of liquefied petroleum gas. Ahead of the visit, Indian officials had indicated that Modi would seek long-term energy supply deals and support for expanding India’s strategic oil reserves.
The UAE’s recent decision to leave OPEC is expected to boost its oil output, a development that benefits major importers such as India. The oil pact announced includes a potential increase of Abu Dhabi National Oil Company’s (ADNOC) crude oil storage in India to up to 30 million barrels.
ADNOC also stated that the deal explores potential crude storage in Fujairah, a strategic hub, as part of India’s reserve system. Additionally, ADNOC will expand LPG supply and trading opportunities with Indian Oil Corporation, reinforcing the energy partnership.
ADNOC’s managing director and CEO, Sultan Ahmed Al Jaber, highlighted India’s growing energy demand, noting that its scale and trajectory make it one of the defining energy markets of the era. He emphasised that the UAE-India energy partnership is critical as India’s population and economic growth accelerate.
This sentiment reflects the UAE’s strategic calculation to position itself as a long-term energy partner for India, particularly at a time when global energy markets remain volatile due to the Iran war and the closure of the Strait of Hormuz, which disrupted regional transportation and business before a fragile ceasefire was reached last month.
The visit also saw the announcement of UAE investments worth $5 billion into India. This builds on past deals such as Emirates NBD’s acquisition of a 60% stake in RBL Bank for $3 billion last year, and Abu Dhabi’s IHC $1 billion Sammaan investment.
These investments underscore the UAE’s confidence in India’s financial and economic trajectory, complementing the defence and energy agreements with a strong economic dimension. Earlier this year, New Delhi and Abu Dhabi had signed a $3 billion deal for India to buy LNG from the UAE, further cementing the UAE’s role as India’s third-largest trading partner.
The strengthening of India-UAE ties comes at a time when Saudi Arabia and Pakistan are drawing closer. Pakistan has positioned itself as a mediator between Washington and Tehran in efforts to end the war that began with U.S. and Israeli strikes on Iran on 28 February.
It has also bolstered Saudi Arabia’s defences against Iranian missile and drone attacks. Riyadh recently pledged $3 billion in additional support to Pakistan to help bridge a financing gap linked to debt repayment to the UAE.
Against this backdrop, India’s deepening partnership with the UAE is seen as a strategic counterweight, ensuring that New Delhi remains a central player in the evolving security and energy architecture of the Gulf.
The convergence of defence, energy, and investment agreements during Modi’s visit reflects a deliberate effort to elevate the India-UAE relationship to a new level of strategic partnership. It positions both nations to navigate the turbulence of the Iran war, the shifting alignments in the Gulf, and the broader Indo-Pacific strategic environment.
For India, securing energy supplies and embedding defence cooperation with the UAE enhances its resilience and influence in a region critical to its national interests. For the UAE, diversifying partnerships beyond traditional allies and investing in India’s growth story ensures long-term stability and relevance in a rapidly changing global order.
Reuters
