By Mahendra Ved
New Delhi. History records India’s relations with the United Arab Emirates (UAE) spanning over three millennia. It recorded a generational transition on April 7-8 in the maiden visit of Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Dubai’s Crown Prince, the UAE’s Deputy Prime Minister and Minister of Defence.
India warmly welcomed the youthful prince, and Prime Minister Narendra Modi called the visit “special”. (Incidentally, this is in keeping with honouring the young, be it Ms Ivanka Trump some years ago, or Modi carrying gifts for the minor children of US Vice President J D Vance, besides his Indian-born wife Usha).
The Dubai prince fitted the bill. He is popularly known as ‘Fazza’, the name under which he publishes his poetry, which means “the one who helps” in Arabic. As an equestrian, Maktoum is a multiple world champion at the World Equestrian Games.
He has worn these multiple caps while serving as the Crown Prince of Dubai since 2008. He has also been the Minister of Defence of the UAE since 14 July 2024. He served as deputy ruler of Dubai from 2006 to 2008.
Now, to get down to the “nuts and bolts” of the visit, which India excitedly termed “from Dubai to Delhi,” both nations walked the economic talk and stressed consolidating their defence ties.
Arriving at the head of a large delegation of ministers and officials, the prince was warmly received at the airport by S. Gopi, India’s Union Minister of State for Tourism and Petroleum, Suresh Gopi. The Indian side conveniently chose a politician from Kerala. The southern state sends a majority of Indians working in the UAE and the Gulf region. He received a ceremonial guard of honour from the Indian soldiers.
External Affairs Minister S. Jaishankar welcomed him and the two met Prime Minister Modi over a “working lunch”. India put its best foot forward with its top ministers and officials.
The Indian side said after Defence Minister Rajnath Singh met the visiting royal. Both sides agreed that “close cooperation between the defence industries” should be an “integral part” of the bilateral cooperation.
Specifically, media reports said, India has offered the UAE the India-made defence missile system. It can intercept hostile aircraft, helicopters, drones and subsonic cruise missiles at 25 km range.
“The two leaders expressed satisfaction on the active Coast Guard to Coast Guard cooperation and committed to further deepen it by formalising the same through an MoU. They were convinced that close collaboration between the defence industries should be an integral part of the bilateral cooperation,” the press note announced after the meeting between Mr. Singh and the visiting Crown Prince.
Mr. Singh said the Comprehensive Strategic Partnership with the UAE was of “immense priority” for India, adding, “In the coming years, we are eager to work closely in areas such as defence cooperation, co-production and co-development projects, innovation and technology. Both India and the UAE are committed to work towards peace and prosperity in the region.”
The Crown Prince, who is also a patron of the arts in the UAE, said, “Our conversations reaffirmed the strength of UAE-India ties, which is built on trust, shaped by history, and driven by a shared vision to create a future full of opportunity, innovation, and lasting prosperity.”
Mr. Modi acknowledged the contribution of Dubai in furthering the India-UAE Comprehensive Strategic Partnership. “This special visit reaffirms our deep-rooted friendship and paves the way for even stronger collaboration in the future,” the Indian premier said.
Bilateral trade and boosting economic ties were the key focus of the visit. Its significance lies in the fact that both countries, along with scores of others across the world, are dealing with unprecedented tariffs being declared by the United States. That being so, the visit was like a stable island in an ocean of economic uncertainties, analysts said.
Six outcomes emerged from the visit, emphasising boosting cultural, sports and people-to-people contacts. The Indian Institute of Management, Ahmedabad, will have a campus in Dubai in September, as also a campus of the Indian Institute of Foreign Trade at the India Pavilion in ExpoCity. Land will be allotted for Bharat Mart, a UAE-India Friendship Hospital will be set up in Dubai. Ship repair workshops will come up at Kochi and at Vadinar. The Dubai Chamber of Commerce will have an India office.
India’s export to UAE stood at US$ 23.94 billion during April-November 2024. Major exported items from India to UAE include engineering goods (US$ 5.51 billion), gems and jewellery (US$ 4.76 billion), petroleum products (US$ 4.33 billion), electronic goods (US$ 2.23 billion) and others (US$ 1.94 billion).
India-UAE relations have evolved into a robust and multifaceted partnership over the past few decades, characterized by strong economic, political, cultural, and strategic ties. Here’s an assessment of their relationship based on key dimensions:
- Economic and Trade Relations
The economic ties between India and the UAE are among the most significant aspects of their relationship. The UAE is one of India’s largest trading partners, and India is the UAE’s largest trading partner in Asia.
Trade: Bilateral trade has grown significantly, with the UAE being India’s third-largest trade partner after China and the United States. In 2022, bilateral trade was valued at over $60 billion. The UAE is a key destination for Indian exports, particularly in areas like petroleum, gems and jewellery, textiles, and machinery.
Investment: The UAE has made substantial investments in India, particularly in infrastructure, real estate, energy, and technology. Conversely, Indian businesses have expanded their operations in the UAE, making it a key hub for Indian entrepreneurs and startups.
Remittances: The Indian diaspora in the UAE plays a vital role in the economic relationship. India is the largest recipient of remittances from the UAE, with millions of Indian workers contributing to both countries’ economies.
- Political and Strategic Relations
Politically, the India-UAE relationship is built on mutual respect and cooperation across various global and regional issues.
Diplomatic Engagement: Both countries have maintained strong diplomatic ties. The UAE has been supportive of India’s stance on various international issues, such as terrorism and regional security. India, on the other hand, has supported the UAE’s policies in the Gulf and Middle East.
Defense Cooperation: While India and the UAE do not have a formal defense agreement, both countries have engaged in defense and security cooperation, particularly in counter-terrorism, maritime security, and intelligence sharing. Joint naval exercises and defense dialogues have enhanced their security collaboration.
Regional Cooperation: Both countries are also engaged in regional platforms such as the Indian Ocean Rim Association (IORA) and have worked together in the Gulf Cooperation Council (GCC) context on matters of regional peace and stability.
- Cultural and Social Ties
The cultural connections between India and the UAE are strong, driven by the large Indian expatriate community in the UAE. There are also significant historical and religious ties between the two countries.
Indian Diaspora: The Indian community in the UAE is the largest expatriate group, making up about 30% of the UAE’s population. The community is an integral part of the UAE’s social fabric and plays a significant role in the development of the country.
Cultural Diplomacy: Both countries engage in cultural exchange, with events, festivals, and exhibitions highlighting Indian culture in the UAE, and vice versa. The UAE has also become a prominent center for promoting Indian cinema, food, music, and other cultural expressions.
Religious Ties: There are significant numbers of Indian Muslims, Hindus, and Sikhs in the UAE, which has led to stronger people-to-people interactions. The UAE’s commitment to maintaining religious tolerance and coexistence resonates well with India’s diverse and multi-religious society.
- Energy Cooperation
Energy is another key area where both countries have found mutual benefit.
Oil and Gas: The UAE is an important source of energy for India, and both countries have expanded their cooperation in this area. The UAE provides crude oil to India, and both countries have discussed joint investments in energy infrastructure projects.
Renewable Energy: With both countries focused on renewable energy for the future, India and the UAE have made strides in joint ventures related to solar power and other sustainable energy solutions. The UAE’s Masdar Group and India have collaborated on solar energy projects, making this sector a cornerstone of their future relationship.
- Future Prospects
Comprehensive Economic Partnership Agreement (CEPA): In 2022, India and the UAE signed the India-UAE CEPA, which is expected to boost bilateral trade to $100 billion in the next five years. This agreement covers a wide range of areas, including trade, investment, services, and technology, and it is expected to create new opportunities for both nations.
Geopolitical Alignment: As India continues to play a more significant role in the Indo-Pacific and the UAE seeks to increase its influence in the region, both countries are likely to align further on key geopolitical issues, including security and trade routes.
Technological Cooperation: As India grows in technological innovation, there is significant potential for collaboration in fields like Artificial Intelligence, fintech, and space exploration, which could further enhance bilateral relations.
Conclusion
India-UAE relations are strong, growing, and diversified across multiple sectors. While trade and economic cooperation have always been the backbone of the partnership, geopolitical and cultural ties have enhanced the relationship over the years. Both countries have shown a shared interest in expanding their cooperation in new areas, such as renewable energy, technology, and defense. With continued focus on strengthening their collaboration, India and the UAE are likely to continue building a robust and strategic partnership well into the future.
— The writer is a senior analyst and author. He is also the President Emeritus, Commonwealth Journalists Association (CJA).
