India and the United Arab Emirates are solidifying their strategic partnership, setting their sights on nuclear energy and advanced technology as the next frontiers for collaboration. This move comes as bilateral trade has already surged past the $100 billion mark, five years ahead of schedule, cementing the UAE’s position as India’s third-largest trade partner. Speaking at an Observer Research Foundation Middle East event in Dubai, Indian Ambassador to the UAE, Sunjay Sudhir, highlighted how both nations are leveraging their unique strengths to forge resilient supply chains and foster sustainable growth, moving beyond traditional trade ties.
Intensified high-level diplomatic engagement since September 2024, including visits from Sheikh Khalid and Crown Prince Sheikh Hamdan to India, has focused on substantive economic cooperation. Discussions during Crown Prince Sheikh Hamdan’s visit with Commerce and Industry Minister Piyush Goyal underscored the significant role of the Comprehensive Economic Partnership Agreement (CEPA) in accelerating bilateral trade, particularly progress on the Virtual Trade Corridor, a foundational element of the India-Middle East-Europe Economic Corridor (IMEEC). UAE investments in India have reached $23 billion, with a notable $4.5 billion committed in 2024 alone, following the finalization of the Bilateral Investment Treaty last year. Furthermore, local currency trade settlement now accounts for 10 percent of all bilateral transactions, reducing dependence on dollar-denominated exchanges.
A significant stride in financial technology integration is the UAE’s Jaywan card, built entirely on India’s rupee card stack. Plans are also underway to connect banking messaging systems, offering an alternative to SWIFT networks, and to integrate India’s Unified Payments Interface (UPI) with the UAE’s Aani platform by November 2025, enabling Central Bank Digital Currency (CBDC) interoperability. Educational cooperation has also seen tangible results with the launch of IIT Abu Dhabi’s PhD program this year, alongside IIM Ahmedabad’s Dubai campus and IIFT Dubai. Defense collaboration has been elevated to the secretary level, featuring joint exercises such as Desert Cyclone, Desert Flag, and the India-France-UAE Trilateral Exercise, and extends to participation in major defense exhibitions like IDEX and Dubai Airshow, with 25 Indian companies actively involved. Hardware integration initiatives include components for the Tejas fighter aircraft and the development of drone and anti-drone systems.
Nuclear cooperation is emerging as a transformative area, with the UAE currently generating 25 percent of its energy from nuclear sources (5.6 GW capacity) and aiming to double this by 2030. The Partnership for Accelerating Clean Energy (PACE) initiative involving the US, UAE, , coupled with synergies with France, positions nuclear energy as a key growth sector. The advanced technology partnership gained momentum at the Vibrant Gujarat Global Summit 2024.
Discussions are also underway for collaboration in critical minerals and the space sector, including polar initiatives. The IMEEC project envisions a comprehensive connectivity corridor for containers, data, and energy through connected grids and subsea cables. The I2U2 framework (India, Israel, UAE, US) is expanding its focus to food security, with plans for two food parks in Gujarat and renewable energy projects targeting 60 GW capacity in Gujarat and Rajasthan. Ambassador Sudhir emphasized the potential benefits for India from the UAE’s 25 other Comprehensive Economic Partnership Agreements (CEPAs), which could provide diversified market access and manufacturing advantages, particularly for energy-intensive industries. The UAE’s recent inclusion in BRICS further enhances its role as a strategic gateway for India’s engagement with Africa through initiatives like Bharat Africa Setu. The legal predictability and stable environment in the UAE also make it an attractive destination for Indian manufacturing investments requiring significant energy inputs.
Culturally, the BAPS Hindu temple in Abu Dhabi stands as a powerful symbol of the shared ethos, religious tolerance, and cultural inclusivity underpinning the broader strategic relationship, a testament to the graciousness of the Abu Dhabi government. As both nations navigate global economic uncertainties, their partnership exemplifies how complementary strengths can foster resilient supply chains and sustainable growth models, with nuclear energy and advanced technology at the forefront of their expanding cooperation.
Must Read
- Advertisement -
