During Indian PM Narendra Modi’s day-long visit to Abu Dhabi on Saturday, India and the UAE signed an agreement enabling the settlement of bilateral trade in rupees and dirhams instead of dollars.
Additionally, PM Modi met the UAE’s President, Sheikh Mohamed Bin Zayed Al Nahyan, and announced the establishment of an Indian Institute of Technology (IIT) in Abu Dhabi.
India-UAE Rupee-Dirham Trade
The Reserve Bank of India (RBI) and the Central Bank of UAE (CBUAE) signed an MoU to establish a framework to promote the use of local currencies — the Indian rupee (INR) and the UAE Dirham (AED) — for cross-border transactions.
RBI Governor Shaktikanta Das and the Governor of the Central Bank of UAE, Khaled Mohamed Balama, signed the MoUs in the presence of the Indian PM and the UAE President.
India and UAE will keep working closely to further global good! Here are highlights from yesterday… pic.twitter.com/tx2eRD5Zs2
— Narendra Modi (@narendramodi) July 16, 2023
With the MoU on local currencies, the two countries will implement a Local Currency Settlement System (LCSS) to promote the use of INR and AED bilaterally.
Under the second MoU, India and the UAE agreed to link their Fast Payment Systems (FPSs) — India’s Unified Payments Interface (UPI) with UAE’s Instant Payment Platform (IPP) — thus enabling the users in either country to make fast, and cost-effective cross-border funds transfers.
They also agreed to link the respective Card Switches (RuPay switch and UAESWITCH), which will facilitate the mutual acceptance of domestic cards and the processing of card transactions.
The MoU also provides for linking payments messaging systems, that is, the Structured Financial Messaging System (SFMS) of India, with the messaging system in the UAE to facilitate bilateral financial messaging between the two countries.
IIT in Abu Dhabi
The Indian Ministry of Education, the Abu Dhabi Department of Education and Knowledge (ADEK), and IIT Delhi signed an MoU to establish the first campus of IIT Delhi in Abu Dhabi.
Yet another #IITGoesGlobal!
— Dharmendra Pradhan (@dpradhanbjp) July 15, 2023
MoU for establishment of @iitdelhi campus in Abu Dhabi in the presence of Hon. PM @narendramodi ji unfolds a new chapter in internationalisation of India’s education.
An exemplar of #NewIndia’s innovation and expertise, the IIT Delhi campus in… pic.twitter.com/DYRy7Vbbwi
The two countries had agreed to establish the campus in February last year during the virtual summit between Modi and Nahyan.
The MoU complements the ongoing UAE-India Comprehensive Economic Partnership Agreement (CEPA), and makes it the second IIT campus abroad after the one recently announced in Tanzania.
Joint Statement on Climate Change
Modi congratulated the UAE on being selected as the host country of the 28th Conference of the Parties to the UN Framework Convention on Climate Change (COP28) in 2023. He also met Sultan Al Jaber, President-designate of COP28 and Group CEO of Abu Dhabi National Oil Company.
The Indian PM and the UAE President also issued a joint statement on climate change in which they emphasised “the necessity of international cooperation in supporting developing nations to respond effectively to the adverse impacts of climate change, in accordance with the provisions of the Convention and the Paris Agreement.”
Had a very productive meeting with Dr. Sultan Al Jaber, the President-designate of @COP28_UAE. Our discussions focused on ways to further sustainable development. Highlighted India’s contribution in this direction, in particular our emphasis on Mission LiFE. pic.twitter.com/E2jsdW8rCL
— Narendra Modi (@narendramodi) July 15, 2023
The two leaders called upon all Parties to engage constructively and demonstrate solidarity in pursuing these outcomes.
Rising Trade, Support for India’s Permanent UNSC Membership
In a joint statement issued after the meeting, the leaders expressed satisfaction that UAE-India relations have witnessed tremendous progress on all fronts.
The statement said, “India-UAE trade rose to USD 85 billion in 2022, making the UAE India’s third-largest trading partner for the year 2022-23 and India’s second-largest export destination.” “The leaders resolved to further enhance bilateral partnership in the energy field, both in oil, gas, and renewable energy.”
The two sides looked forward to further cooperation in platforms like I2U2 (India, Israel, UAE and USA) and the UAE-France-India trilateral cooperation initiative.
The UAE endorsed India’s bid for permanent membership at the UNSC, and the two leaders reaffirmed their commitment to further strengthening the Comprehensive Strategic Partnership, exploring emerging areas of collaboration, and promoting peace, stability, and prosperity in the region and beyond.