1 month ago
If there’s one country in the world with whom India’s ties are steadily on the rise, it is the United Arab Emirates (UAE). In the last decade, Indian Prime Minister Narendra Modi has managed to unlock a potential that leaders before him never paid attention to. In 2015, he was the first Indian Prime Minister make a visit to the UAE in three decades, and since then, the two nations have never looked back. The UAE’s leadership is now making sure to build a strong foundation even for the future of this relationship.
The President of the Emirates — Sheikh Mohammed bin Zayed al Nahyan – has invested a lot into ties with India, and now he’s making sure that the next generation of the country’s leadership does too. His son, the Crown Prince of Abu Dhabi, Sheikh Khaled, met with the Indian Prime Minister on Monday. He is being groomed as the next-gen leader of the Emirates, and part of that effort is to continue his father’s legacy with respect to India.
Let’s break down why soaring of ties between these to countries is a big deal. From trade to temples, and even an IIT campus in Abu Dhabi — there’s a lot to unpack.
First things first — who is the Crown Prince of Abu Dhabi? His name is Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. He comes from the ruling House of Al Nahyan and he’s the next in line for the leadership of the UAE.
This is his first visit to India as the Crown Prince and the focus of his meeting with PM Modi entailed trade and strategic ties. As a result of their talks, the two nations have signed five agreements pertaining to nuclear energy, LNG, petroleum and food parks.
This visit is important because it’s the Crown Prince’s chance to strengthen ties with India at a time when both the countries are growing fast, not just in terms of trade, but in technology, education, and even culture.
Just recently, Sheikh Khaled inaugurated an IIT campus in Abu Dhabi. This is the prestigious Indian Institute of Technology (IIT) where some of India’s best scientific minds and engineering professionals come out of. This is huge because it’s not just about education, it’s about positioning the UAE as a global hub for tech and innovation. It’s also a sign of how India and the UAE are going beyond just business and oil; they’re investing in future generations and knowledge-sharing.
Earlier this year, Prime Minister Modi visited the UAE for the inauguration of a Hindu temple. It was a major event, but here’s the thing, this wasn’t just a one-off event. Modi and UAE President Mohamed bin Zayed have built a really strong personal relationship. What’s interesting is that before Modi’s first visit as the Prime Minister in 2015, no Indian PM had been to the UAE in 34 years. That’s a huge missed opportunity, especially when you consider the size of the Indian diaspora there. This personal connection has really taken the relationship to a whole new level. This bonhomie has instilled trust and goodwill between the two nations like never before. And it shows.
The stunning BAPS temple in the UAE is one example. This magnificent temple complex has been constructed right in the heart of the Arab world. Built at a cost of $84 million on a sprawling 27-acre site, the land for the temple was generously donated by the Emirati President himself. PM Modi inaugurated the temple and expressed gratitude to Sheikh Mohammed Bin Zayed al Nahyan for making it all possible.
During his address to the Indian community in Abu Dhabi, Modi shared how, when he first requested the idea of building a Hindu temple in Abu Dhabi, MBZ instantly agreed. The Emirati leader not only approved the idea, but also instructed that the temple be built with grandeur. As a result, the temple not only serves its religious purpose, but also stands as a symbol of religious freedom — a first-of-its-kind in the region. This was unthinkable in the past for a leading Islamic Arab nation to pave the way for such progress.
What else has come out of this bromance? A lot, actually. Trade between India and the UAE has skyrocketed, and it’s not just about oil anymore. India and the UAE signed a huge trade dealing 2022 called CEPA — the Comprehensive Economic Partnership Agreement. It’s made it easier to trade goods, services and investments, and it’s been a game-changer. In 2022, bilateral trade hit over $84 billion, and it’s only going up from here. We’re seeing new opportunities in areas such as fintech, green energy and infrastructure.
The UAE has emerged as one of India’s most significant trading partners, ranking just behind the USA and China. It has become India’s third-largest trading partner and second-largest export destination. On the flip side, India is the UAE’s second-largest trading partner, accounting for 9% of its total foreign trade and an impressive 14% of its non-oil exports.
When it comes to investments, the UAE holds the position of the 7th largest investor in India. To put things into perspective, India-UAE trade, which stood at a modest $180 million per year back in the 1970s, has skyrocketed to a remarkable $84.84 billion in FY23 — a clear indicator of how the relationship has evolved over the decades.
The relationship isn’t just about business — there’s also growing defence and strategic cooperation. The UAE and India have been working together on things such as anti-terrorism efforts and joint military exercises such as the Desert Cyclone and Desert Knight military exercises. It’s not just about making money; it’s about keeping each other safe and stable, especially in a region as complex as the Middle East. They share a compressive strategic partnership, a step higher than just strategic partnership. Together, they are part of the I2U2 strategic grouping, which is also called the middle-eastern Quad, along with Israel and the US. Such geopolitical alignment enhances the two nations’ strengths.
Another interesting thing about the UAE is its cultural tolerance. The recent Hindu temple inauguration was significant, especially in a country where the majority of people follow Islam. The UAE’s leadership has been progressive about embracing different religions and cultures, which makes it a great place for the 3.5 million Indians living there. That’s right — 3.5 million! This is three times more than the population of Emiratis, which stands at 1.15 million. Forming 30% of the country’s population, Indians are the largest expat group here and have made extensive contributions to nation-building. Composed of a large labour force, skilled professionals, industrialists and business people, the Indian community in the UAE is massive, and they’re a big part of why the ties between these two countries are so strong.
And it’s not just the UAE. PM Modi has been building bridges all across the Middle East. India now has strong ties with other Arab powers like Saudi Arabia too. These countries are looking to diversify their economies— move away from oil — and India’s market, tech skills and huge labour force make it a key partner in that transition.
As the Crown Prince of Abu Dhabi wraps up his visit, it’s clear that the India-UAE relationship is not just business as usual. It’s growing deeper, more strategic, and more collaborative. Whether it’s education, defence, or culture, this partnership is setting the stage for the future. And with forward-thinking leadership on both sides, we’re likely to see even more exciting developments in the years to come.
