India signs agreements with UAE on defence, energy during Modi visit

NEW DELHI/DUBAI: India and the United Arab Emirates agreed the framework for a strategic defence partnership on Friday during Prime Minister Narendra Modi’s visit to the Gulf nation, the Indian foreign ministry said, as they seek to deepen ties amid the Iran war.

India and the UAE also signed pacts on strategic petroleum reserves and supply of liquefied petroleum gas, the ministry said in a statement.

Under the strategic defence partnership, “the two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange,” it said.

Ahead of Modi’s visit, Indian sources told Reuters that the prime minister was likely to discuss long-term energy supply deals with his hosts and also seek support to expand New Delhi’s strategic oil reserves.

The UAE’s decision last month to leave OPEC is expected to boost its output and help importing countries such as India.

The U.S. and Israeli war on Iran, now in its third month, has roiled global energy markets with the closure of the Strait of Hormuz, a vital chokepoint for the flow of around 20% of global oil. It has also disrupted transportation and business across the Gulf as Iranian strikes hit Gulf countries, including the UAE, before a fragile ceasefire was reached last month.

In January, New Delhi and Abu Dhabi signed a $3 billion deal for India to buy LNG from the UAE, its third largest trading partner, as well as a letter of intent to work towards forming a strategic defence partnership.

Eyeing close Saudi-Pakistani ties

That followed a mutual defence agreement that Pakistan, India’s arch-rival neighbour, signed with Saudi Arabia last year.

Pakistan has emerged as the key mediator between the U.S. and Iran to end their war and has also moved to shore up Saudi Arabia’s defences after the kingdom came under hundreds of Iranian missile and drone attacks.

Riyadh said last month it would provide $3 billion in additional support for Pakistan to help it bridge a multi-billion dollar gap in its finances linked to an upcoming debt repayment to the UAE.

In its statement on Friday, the Indian foreign government also announced UAE investments worth $5 billion, pointing to past deals including Emirates NBD’s acquisition of a 60% stake in RBL Bank last year for $3 billion, and Abu Dhabi’s IHC $1 billion investment in Sammaan.