G20 Summit: India and the UAE establish strong alliance
The United Arab Emirates (UAE) and the Republic of India have established a strong partnership in recent years. The leaders of the two countries have signed various deals and held various bilateral meetings.
India, which is hosting the 2023 G20 summit, and the UAE, which is set to host the Cop28 UN climate summit in November, have been putting joint efforts to maintain the important economic linkages between the two countries.
The President of the UAE, His Highness Sheikh Mohamed bin Zayed Al Nahyan, popularly known as MBZ, arrived in India’s capital New Delhi on 8 September to participate at the G20 summit. The Prime Minister of India, His Excellency Shri Narendra Modi, welcomed the UAE President to India. PM Modi shook hands with Sheikh Mohamed bin Zayed Al Nahyan at the G20 venue – Bharat Mandapam – in Pragati Maidan, New Delhi, on 9 September.
The UAE leader will participate at various sessions at the 18th annual G20 (Group of 20) Heads of State and Government Summit. India and the UAE, the two substantial trade partners, are also set to discuss various strategies to fight against climate change.
During the G20 summit, under the theme, ‘Vasudhaiva Kutumbakam – One Earth, One Family, One Future’, the UAE will sign a major infrastructure and railway deal with India, Saudi Arabia, and the United States. The railway deal aims to link Middle Eastern countries via railways and connect the Republic of India through shipping lanes.
In February 2022, the UAE and India signed the CEPA (Comprehensive Economic Partnership Agreement) with the aim to increase the bilateral trade between the two countries. His Highness Sheikh Mohamed Bin Zayed and PM Modi witnessed the signing of the crucial agreement.
The Comprehensive Economic Partnership Agreement came into effect in May 2022. During the June-January period, India’s non-petroleum exports to the UAE increased by 5 per cent and India’s non-petroleum imports increased by 3 per cent.
Within one year of signing CEPA, India’s total exports to the UAE grew by 26 per cent and re-exports increased by 10 per cent.
The CEPA was aimed at providing opportunities to MSMEs (Micro, Small, and Medium Enterprises) and jobs to around 1 million unemployed youth.
The UAE is currently India’s third-largest trading partner after China and the US. The UAE is also India’s second-largest export destination. The UAE’s investment in India is also estimated to be nearly $14 billion.
Abu Dhabi Investment Authority (ADIA), a sovereign wealth fund owned by the Emirate of Abu Dhabi in the UAE, has significantly invested in India. EMAAR, a real estate company of the Dubai Government, is among the most active foreign investors in India. The company has established an international convention center and a golf course in Hyderabad, the capital of southern India’s Telangana state. Abu Dhabi-based retail giant, Lulu Group, has invested AED1.7 billion for a project in Andhra Pradesh, a state in the southern coastal region of India.
Earlier this year, the UAE and India reaffirmed their joint commitment to the fight against terrorism. Narendra Modi and Sheikh Mohammed bin Zayed Al Nahyan issued a joint statement, stressing the need to deepen their bilateral cooperation in the fight against terrorism, terrorist financing, and extremism.
In July, Prime Minister Narendra Modi met and held talks with the UAE President. The two leaders agreed to deepen the multifaceted bilateral ties.
The UAE President greeted PM Modi at the Qasr-Al-Watan, the presidential palace of the UAE, located in Abu Dhabi. The two leaders also agreed to boost cooperation across various sectors such as trade, investments, energy, food security, science and technology.