COUNTRY RELATIONSHIP · UNITED ARAB EMIRATES
India & United Arab Emirates
India's largest Arab trading partner and home to 3.5 million Indians - the largest diaspora community globally. The CEPA concluded in 88 days (2022) and covers 90% of India's exports duty-free. The UAE is a growing source of sovereign wealth investment in India across infrastructure, technology, and food security.
COOPERATION AREAS
Where India and United Arab Emirates actually work together
6 active areas of cooperation, as of 12 May 2026
CEPA concluded in record time
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) was signed in February 2022 after just 88 days of negotiations - the fastest CEPA India has concluded. It covers goods, services, and investment; 90% of Indian goods exports enter the UAE duty-free.
Oil, LNG, and renewables
The UAE is India's third-largest crude oil supplier. ADNOC has equity stakes in Rajasthan oil fields. Renewable energy cooperation - solar, green hydrogen - expanded under the UAE COP28 presidency. IRENA is headquartered in Abu Dhabi.
Sovereign wealth flowing into India
ADIA (Abu Dhabi Investment Authority) and Mubadala have committed billions to Indian infrastructure, fintech, and logistics. Total UAE FDI into India exceeded $20bn cumulative by 2025, making UAE the 7th largest FDI source.
3.5 million Indians, largest diaspora
India's largest diaspora community is in the UAE. Remittances from the UAE to India exceeded $18bn in FY24. The two governments cooperate closely on welfare of Indian workers, particularly in construction and domestic service sectors.
Digital payments and data centres
UPI was launched in UAE in 2023 - the first Middle East country. NPCI International and local payment networks are integrating. UAE is a growing hub for Indian data centres, cloud infrastructure, and AI compute.
I2U2 food corridor
Under the I2U2 grouping, UAE is financing large-scale integrated food parks in Indian states (Gujarat, Madhya Pradesh, Andhra Pradesh) with $2bn committed. Israel provides agri-tech, India the land and labour.
TRADE & INVESTMENT
By the numbers
All figures FY 2023–24 unless noted. Source: DGFT, Ministry of Commerce.
Trade trajectory · USD bn
TOP TRADED ITEMS
AGREEMENTS & MILESTONES
The relationship since 1972, in 12 dates
Diplomatic relations established
First large-scale Indian worker migration to Gulf
Comprehensive Strategic Partnership declared
Order of Zayed awarded to PM Modi
CEPA signed - 88 days of negotiations
UPI launched in UAE
I2U2 food park framework signed, Gujarat summit
ADIA invests $4bn in Indian infrastructure fund
Rupee–Dirham settlement mechanism expanded
CEPA review - services and digital chapters
Joint data centre and cloud MOU signed
India-UAE Strategic Dialogue, Abu Dhabi
CURRENT STATE
Where things stand, May 2026
The relationship is at peak transactional depth. CEPA is delivering - Indian exports to UAE grew 18% in the first two years post-CEPA. Sovereign wealth investment from ADIA and Mubadala into India's infrastructure and technology sectors is growing structurally. The UAE-India rupee-dirham direct settlement mechanism, operational since 2024, is gradually reducing dollar dependency in bilateral trade. The diaspora welfare framework was strengthened after the 2024 amnesty programme allowed undocumented workers to regularise status.
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