Prime Minister Narendra Modi greeted by UAE President Mohammed bin Zayed Al Nahyan in Abu Dhabi on February 13.
Credit: X/@Narendramodi
India and the United Arab Emirates (UAE) inked a Bilateral Investment Treaty (BIT) and a Memorandum of Understanding (MoU) for co-operation in digital infrastructure, as Prime Minister Narendra Modi and President Sheikh Mohamed bin Zayed Al Nahyan met in Abu Dhabi on Tuesday.
Modi and Mohamed bin Zayed witnessed the signing of an intergovernmental framework agreement for the implementation of the India-Middle-East-Economic Corridor.
Two other agreements were also inked – one on interlinking of the instant payment platforms, UPI of India and AANI in UAE, and another on interlinking of domestic debit or credit cards, RuPay of India and JAYWAN of the UAE.
Modi commenced his two-day visit to UAE on Tuesday. Apart from meeting the UAE president in Abu Dhabi and addressing Indians and Indian-origin people of the West Asian nation, the prime minister would visit Dubai and address the World Government Summit in Dubai.
He will also inaugurate the first Hindu Mandir in Abu Dhabi. “The BAPS temple will be an enduring tribute to the values of harmony, peace and tolerance, which both India and the UAE share,” Modi said before leaving New Delhi for Abu Dhabi.
As he landed in Abu Dhabi, the UAE president personally received him at the airport. The two leaders later held one-on-one and delegation-level talks. They reviewed the bilateral partnership and discussed new areas of cooperation. They welcomed the deepening of the comprehensive strategic partnership across sectors, including trade and investment, digital infrastructure, fintech, energy, infrastructure, culture, and people-to-people ties. The discussion also covered regional and global issues.
“Had an excellent meeting with my brother HH @MohamedBinZayed. India-UAE friendship is growing stronger and stronger, greatly benefitting the people of our nations," Modi posted on X after he met the UAE president.
The BIT will replace an agreement inked in 2013 to promote and protect investments made by the entities of India and the UAE in each other’s countries. The 2013 agreement had come into force in 2014 for 10 years and would expire later this year.
The Ministry of External Affairs (MEA) stated that the new India-UAE BIT would be “a key enabler for further promoting investments in both countries”.
The UAE’s investment in India is estimated to be around $20-21 billion of which $15.18 billion is in the form of Foreign Direct Investment (FDI) while the remaining is portfolio investment. The UAE is the 7th biggest investor in India in terms of FDI. Abu Dhabi Investment Authority (ADIA), the principal sovereign wealth fund of the UAE, has committed to invest $75 billion in India’s infrastructure sector.
The investments by Indian companies in the UAE are estimated to have surpassed $85 billion, according to the Embassy of India in Abu Dhabi.
India and the UAE also inked an MoU on cooperation in the field of electrical interconnection and trade. It will open new areas of collaboration in the field of energy, including energy security and energy trade.
An MoU on cooperation in Digital Infrastructure Projects was signed to create a framework for wide-ranging cooperation, including investment cooperation, in the digital infrastructure sector and also facilitate the sharing of technical knowledge, skills, and expertise. A cooperation protocol between the National Archives of the two countries and an MoU for cooperation in the field of heritage and museums were also inked.
Ahead of the visit, the RITES Limited signed an agreement with Abu Dhabi Ports Company and Gujarat Maritime Board with Abu Dhabi Ports Company. The agreement will help build port infrastructure and further enhance connectivity between the two countries.