India Lands USD5B UAE Investment, Defense, Energy Pacts on Gulf Tour

(MENAFN) India and the United Arab Emirates have signed a raft of energy and defense agreements as Prime Minister Narendra Modi kicked off a five-nation diplomatic tour with a high-stakes stop in the Gulf nation on Friday.

The UAE stop marks the opening leg of a wider itinerary that will take Modi through the Netherlands, Sweden, Norway and Italy in the days ahead.

The financial dimensions of the visit were substantial. Abu Dhabi pledged a total of $5 billion in investments directed at India — comprising $4 billion from Emirati financial institutions into Indian banks and a further $1 billion commitment by the Abu Dhabi Investment Authority (ADIA) alongside the National Infrastructure & Investment Fund of India (NIIF), earmarked for priority infrastructure development.

A defense partnership framework, a strategic petroleum reserves agreement and a deal covering the supply of liquefied petroleum gas (LPG) were also formalized, Modi's office confirmed. The energy accord opens the door to potential collaboration on liquefied natural gas and LPG storage infrastructure on Indian soil.

Additional agreements signed during the visit include a memorandum of understanding to develop a ship repair cluster at Vadinar in the western state of Gujarat, as well as an understanding to establish a supercomputer cluster.

In his meeting with UAE President Sheikh Mohammed bin Zayed Al Nahyan, Modi addressed the regional turbulence directly, making clear New Delhi's solidarity with Abu Dhabi. "We strongly condemn the attacks on the UAE and denounce the way the UAE has been targeted. This is unacceptable in any form," he said.

The Indian prime minister also reaffirmed New Delhi's commitment to diplomatic engagement and open sea lanes. "India has always vouched for dialogue and diplomacy," he said, adding, "our priority is to keep Hormuz free and safe. We have to follow international laws."

Modi further praised Abu Dhabi's measured response to the regional crisis, lauding "the restraint and maturity" shown by the UAE in these difficult circumstances.

The Strait of Hormuz has emerged as a central flashpoint in the broader Middle East standoff, with Washington enforcing a blockade of the critical waterway — through which a fifth of the world's crude oil supplies transited before hostilities erupted — amid an ongoing dispute with Tehran over energy vessel passage through the chokepoint.

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