Old-fashioned trust and credibility bind India-UAE ties
The HinduAt a time when diplomacy is widely regarded as transactional, the deeply personal relationship between Prime Minister Narendra Modi and Sheikh Mohamed bin Zayed Al Nahyan, President of the United Arab Emirates stands out as something of an old-world construct. Strengthening economic ties Mr. Modi is also expected to kick off the much-anticipated Bharat Mart, a key initiative of Dubai-based DP World and India’s Ministry of Commerce and Industry to boost exports of Indian Micro, Small and Medium Enterprises by providing them retail, warehousing and logistics facilities in Dubai’s Jebel Ali Free Zone Area. The Bharat Mart project comes on the heels of the ambitious India-UAE Comprehensive Economic Partnership Agreement which completed its first year in 2023 and has already seen India’s trade with the UAE grow by 16% to $85 billion. A 14-year deal, by Indian Oil Corporation Limited, to buy 1.2 million metric tonnes per annum of liquefied natural gas from the Abu Dhabi National Oil Company during 2026-39 has been signed to boost India’s energy security. Longer shipping times, higher freight costs and a possible hike in oil prices can pose a significant risk to India’s economic growth, and it is important that the government coordinates closely with a key regional player such as the UAE, along with countries such as Saudi Arabia and Egypt to make sure that India’s interests are protected.