What happened?
On 15 May, the Indian PM Narendra Modi visited the UAE and held talks with President Sheikh Mohamed bin Zayed Al Nahyan. During the visit, both countries inked several bilateral deals on energy security, defence cooperation, maritime infrastructure, AI, supercomputing, and investment cooperation.
The Press Information Bureau of India reported that the key deals were with Indian Strategic Petroleum Reserves Limited (ISPRL) and Indian Oil Corporation (IOCL) and with Abu Dhabi National Oil Company (ADNOC) and the strategic defence partnership. The visit has also focused largely on promotion of cooperation in areas such as maritime connectivity, ship repair facilities, cyber and technological innovation, and advanced manufacturing. MoUs were signed between Cochin Shipyard Limited (CSL), Drydocks World (DDW), and the Centre of Excellence in Maritime & Shipbuilding (CEMS) and a strategic defence partnership framework.
What is the background?
1. A brief note on the recent India-UAE relations
Both India and the UAE have long-standing economic engagement based on trade and energy partnerships. Since Prime Minister Modi's first visit to the UAE in 2015, both countries have elevated their relations to a Comprehensive Strategic Partnership across defence, trade, technology/infrastructure, and regional security. According to the India Brand Equity Foundation (IBEF), bilateral trade is expected to exceed USD 101.25 billion in FY 2025-2026. The UAE is one of India's largest trading partners and a leading source of investments in Indian infrastructure and renewable energy projects. Bilateral cooperation and trust have been enhanced by the committed high-level engagement of both countries, including the eight visits by PM Modi in the past decade.
Economic relations between the two states have expanded rapidly over the last decade. The bilateral trade is expected to exceed USD 100 billion in the financial year 2025–26. Therefore, the UAE remains one of the largest overseas traders in India. Furthermore, agreements like the Comprehensive Economic Partnership Agreement (CEPA) of 2022 and the Bilateral Investment Treaty of 2024 further consolidated economic integration between both countries. While India aspires to attract more UAE investment, the UAE views India as a key market and a strategic economic partner in Asia.
2. Expanding India-UAE cooperation in defence, maritime security, and skill development
During the past decade, there has been an increased interaction between India and the UAE in defence and maritime security areas. The process of cooperation is regulated by the Joint Defence Cooperation Committee (JDCC), created in July 2025. Additionally, consultations between the military personnel of India and the UAE also help foster strong relationships between the two countries in terms of military affairs. While India is focused on increasing maritime security and developing its indigenous defence manufacturing through the "Make in India" program. Simultaneously, the UAE is focusing on enhancing its foothold in the regional logistics, port development, maritime trade, and high-tech defence industries. The two countries have also expressed concerns over regional security threats, economic connectivity, and supply chain resilience.
3. Growing cooperation in emerging technologies and future-oriented sectors
Emerging technologies, including AI and cybersecurity and digital infrastructure, supercomputing, and advanced manufacturing, have been increasingly significant in national development plans for both India and the UAE. The India AI Mission and broader digital modernization are expected to catalyze India's technology self-reliance, digital economy, and innovation ecosystem. Similarly, the UAE is also working to diversify its economy from hydrocarbon-based industries and position itself as a global hub for AI, innovation, and future technologies.
What does it mean?
First, India and the UAE are deepening and diversifying their bilateral relations. The agreements signed as a result of the visit prove that bilateral relations are beyond traditional oil and trade cooperation. India and the UAE are also increasingly cooperating in defence, maritime infrastructure, artificial intelligence, cybersecurity, logistics, and advanced technologies.
The collaboration supports Make in India for the indigenization of defence manufacturing under the Make in India initiative. Stronger defence relations with India help the UAE shift its strategic partnerships away from the West and deepen collaboration in advanced military technologies.
Second, the emergence of technologies has become a key pillar of cooperation. Partnerships in AI, supercomputing, cybersecurity, and digital infrastructure, such as the agreement between the 8 Exaflop Super Computing Cluster in partnership between CDAC, India, and G-42, UAE, indicate that emerging technologies are becoming central to bilateral relations. Such initiatives help expand India’s sovereign AI capabilities and strengthen digital infrastructure under the IndiaAI Mission, while also bolstering the UAE's ambitions of becoming a global technology and AI hub. The agreements also reflect how both countries are aligning economic growth with technological transformation and future-ready development.
