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Modi Visits UAE to Pay Respects to Late Sheikh Khalifa, Build on Recent $100bn FTA

Earlier this year, India and the UAE signed a free trade agreement to expand trade in goods to over $100 billion and trade in services to over $15 billion.

June 29, 2022
Modi Visits UAE to Pay Respects to Late Sheikh Khalifa, Build on Recent $100bn FTA
Indian PM Narendra Modi congratulated Emirati leader Al Nahyan for his election as the third President of the UAE.
IMAGE SOURCE: INDIAN EXPRESS

Indian Prime Minister (PM) Narendra Modi paid a short visit to Abu Dhabi while returning from the G7 Summit in Germany to pay his respects for the late Sheikh Khalifa bin Zayed Al Nahyan and review the $100 billion Free Trade Agreement signed with the United Arab Emirates (UAE) earlier this year.

In his first visit since August 2019, Modi met with UAE President Sheikh Mohamed bin Zayed Al Nahyan, who replaced his father Sheikh Khalifa after his death last month. In this regard, the Indian PM congratulated Al Nahyan for his election as the third president of the UAE and wished him “success” in “achieving more progress and development.”

In response, the Emirati president expressed their gratitude for PM Modi’s “warm feelings” towards the UAE and wished “stability and prosperity for the people of India.” He also stressed on the two countries’ “strategic ties” and their “joint keenness on developing them into wider horizons.”

Furthermore, he celebrated the contribution of the Indian community to the “development, building, and progress” of the UAE and also hailed the “cultural and economic bonds” between the two countries.

According to a release by the Indian PM’s Office, the pair also conducted a review of their Comprehensive Strategic Partnership, which was established following the signing of the Comprehensive Economic Partnership Agreement during a virtual summit in February that came into force in May. The agreement seeks to increase bilateral trade in goods to over $100 billion and trade in services to over $15 billion.

The Vision Statement adopted after the meeting established a roadmap to increase cooperation in several issues including renewable energy, food security, health, and defence. 

Sunjay Sudhir, the Indian ambassador to the UAE, outlined this month: “The plan is to introduce a three-pronged strategy focusing on 15 buyers and sellers meet focusing on key markets every fortnight; focused participation of 11 exhibitions; and set up a platform for addressing and facilitating Indian exports.”

Over the years, the two sides have developed close relations, largely due to their mutual economic dependence on one another. For India, UAE is an important source of oil and its third-largest destination for exports, amounting to around $16 billion in 2020-2021, largely for wheat and other food exports.

The UAE also houses 3 million Indians, who account for around 35% of the population and contribute greatly to the workforce of a nation whose natives account for only 15% of the population. India is also the UAE’s second-biggest trade partner.

Apart from their flourishing economic ties, the two sides have also deepened their strategic cooperation through the “new Quad”—a defence and security partnership comprising India, UAE, Israel, and the United States. The alliance aims to build on the hard-won momentum of the Abraham Accords, which were brokered by former American President Donald Trump between Israel and several Arab countries. India has celebrated the normalisation of ties between Israel and several Arab nations for its positive impact on peace and security in West Asia, its ‘extended neighbourhood.’

This is the first visit by Modi to an Arab nation since several Islamic countries across the globe protested against controversial comments on Prophet Muhammad by media officials in India’s ruling Bharatiya Janata Party.

In fact, the UAE joined the Gulf Cooperation Council in issuing a “categorical rejection” of the remarks, saying it stands firmly against “provocation, targeting or underestimating beliefs and religions.”

The UAE’s foreign ministry also released a separate statement saying the comments “contradict moral and human values and principles” and called on India to contribute toward international cooperation in spreading “the values of tolerance and human coexistence.”

Modi was accompanied on his trip to Abu Dhabi by National Security Adviser Ajit Doval and also met with National Security Adviser Sheikh Tahnoun bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs Sheikh Mansour bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation Sheikh Abdullah bin Zayed Al Nahyan, and various other high-level officials.