India and UAE Elevate Strategic Ties with Landmark Agreements During President MBZ’s Visit

NEW DELHI – In a move that signals a "new frontier" for bilateral relations, President Sheikh Mohamed bin Zayed Al Nahyan (MBZ) of the United Arab Emirates concluded a high-impact official visit to India on January 19, 2026. The three-hour summit with Prime Minister Narendra Modi yielded 12 major outcomes, transforming the partnership from a traditional energy-buyer relationship into a high-tech strategic alliance.
The visit comes as both nations navigate a rapidly changing geopolitical landscape, emphasizing "strategic autonomy" and deep industrial collaboration.
Doubling Down on Trade: The $200 Billion Target
Building on the momentum of the 2022 Comprehensive Economic Partnership Agreement (CEPA), the two leaders set an ambitious goal to double bilateral trade to US$ 200 billion by 2032.
- Market Access: Both nations highlighted the Bharat Mart (Dubai) and the Virtual Trade Corridor as key drivers for MSME growth.
- Bharat-Africa Setu: A new initiative designed to use the UAE as a gateway for Indian products into African and Eurasian markets.
- Financial Hubs: To deepen economic ties, First Abu Dhabi Bank (FAB) and DP World announced the commencement of operations in Gujarat’s GIFT City.
Energy & Nuclear: Securing the Next Decade
A cornerstone of the visit was the signing of a binding Sales & Purchase Agreement (SPA) between ADNOC Gas and Hindustan Petroleum Corporation Limited (HPCL).
- LNG Supply: ADNOC will supply 0.5 MTPA of LNG to India for 10 years, starting in 2028. The deal is valued between $2.5 billion and $3 billion.
- Civil Nuclear: Following the enactment of India's SHANTI Act 2025, the two sides agreed to collaborate on Small Modular Reactors (SMRs) and large-scale nuclear reactor deployment, focusing on safety and operational excellence.
Technology: "Digital Embassies" and AI Supercomputing
The partnership took a futuristic turn with agreements on cutting-edge digital infrastructure:
- Digital Data Embassies: A pioneering concept where India and the UAE will explore setting up offshore data centers. These "embassies" will store critical sovereign data under mutually recognized legal frameworks, ensuring data continuity even during geopolitical or natural disasters.
- AI India Mission: A collaboration between India’s C-DAC and UAE’s G42 will establish a supercomputing cluster in India to accelerate AI research and commercial applications.
