Dubai’s Burj Khalifa illuminated with Indian tri-color in honor of Prime Minister Narendra Modi’s record seventh visit to the UAE in nine years. This signifies a remarkable turnaround since Modi’s historic first visit in 2015, ending a 34-year gap in Indian prime ministerial visits to the UAE. With 3.5 million Indian expats in the UAE, bilateral relations have grown significantly, marked by five high-level visits in the past eight months.
The personal rapport between Modi and President Sheikh Mohamed bin Zayed has fueled diplomatic efforts, enhancing economic cooperation. Their combined economies exceeding $4 trillion provide substantial influence, crucial for regional stability and trade, especially amidst global economic challenges.
The India-Middle-East-Europe-Corridor (IMEEC) project, aiming to establish an alternative trade route via the Middle East to Europe, gains prominence amid security concerns in the Red Sea corridor. Modi’s visit emphasized regional connectivity and energy security, with agreements focusing on logistics, green hydrogen production, and bilateral investment protection.
Despite the global downturn, India-UAE trade flourished, reaching $84.84 billion in 2022-23, up by 43.6% from 2019-20. Building on this, financial integration efforts include the use of Unified Payments Interface (UPI) in the UAE and exploration of digital currencies for cross-border trade settlements.
In conclusion, the India-UAE partnership, though delayed, is rapidly catching up, driven by mutual economic interests and strategic imperatives.