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Big boost for India as UAE unveils $5 billion investment plan during Modi talks

The visit marked the first stop of the Prime Minister’s five-nation diplomatic tour and produced some of the strongest outcomes seen in recent India-UAE engagements.

By Trisha Katyayan

May 16, 2026 09:44 IST

Prime Minister Narendra Modi and UAE President Mohammed bin Zayed Al Nahyan held extensive talks in Abu Dhabi on Friday, announcing major agreements across defence, energy, infrastructure and technology during Modi’s official visit to the United Arab Emirates.

The visit marked the first stop of the Prime Minister’s five-nation diplomatic tour and produced some of the strongest outcomes seen in recent India-UAE engagements.

PM Modi was received at the airport by Sheikh Mohammed bin Zayed Al Nahyan and accorded a ceremonial welcome before bilateral discussions began under the India-UAE Comprehensive Strategic Partnership framework.

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Energy partnership takes centre stage

Energy cooperation remained a key focus of the talks. India and the UAE signed a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company (ADNOC). Under the agreement, the UAE will increase its participation in India’s Strategic Petroleum Reserves to 30 million barrels.


PM Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan hold delegation-level talks. ANI


Both countries also agreed to explore the establishment of strategic gas reserves in India. Another agreement between Indian Oil Corporation (IOCL) and ADNOC formalised long-term LPG supply arrangements.

During the discussions, PM Modi reiterated India’s support for safe navigation through the Strait of Hormuz, calling it essential for regional stability and global energy and food security.

UAE commits $5 billion investments

One of the biggest announcements during the visit was a combined investment commitment of $5 billion from UAE entities into India.

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Emirates NBD will invest $3 billion in India’s RBL Bank, while the Abu Dhabi Investment Authority (ADIA) will invest $1 billion alongside the National Infrastructure and Investment Fund (NIIF) in infrastructure projects. Another $1 billion investment will come from International Holding Company into Sammaan Capital.

The Ministry of External Affairs said the investments reflected the UAE’s "sustained and long-term commitment to India's growth story".


Prime Minister Narendra Modi receives a guard of honour on his arrival, in Abu Dhabi, on Friday. ANI


Defence and technology agreements signed

The two sides also signed a Framework for Strategic Defence Partnership aimed at expanding cooperation in defence manufacturing, maritime security, cyber defence, training and advanced technologies.

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In the technology sector, India’s CDAC and the UAE’s G-42 signed a term sheet to establish an 8 Exaflop Super Compute Cluster. Agreements were also signed between Cochin Shipyard Limited and Dubai’s Drydocks World to strengthen ship repair and maritime skill development.

The leaders additionally welcomed the operational launch of the Virtual Trade Corridor under the MAITRI digital framework to streamline cargo movement and reduce transit costs between the two countries.

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