Col Alok Mathur, SM
As the West Asia burns under blockades by Iran and USA since 28 feb 2026 and World logistics supply chain remain disrupted, Oil prices are spiralling, Indian PM has decided to go across the Arabian sea and visit UAE, which he termed as his second home and great friend and ally of India. He would also cover Nordic belt. Out of all the countries, surrounding southern and western coast of Iran, surprisingly UAE has faced the Prussian wrath maximum. Iran has launched 390 plus ballistic missiles / drones on Abu Dhabi, Dubai and Fujairah. UAE Air defence has intercepted 75% of the Iranian missiles and drones through THAAD (US patriot Air defence shield) but still considerable damage has been caused to Abu Dhabi and Dubai Air field although they have been made operational. On 17 May, three Unidentified drones attacked nuclear plant at Dafae. Two were destroyed but last one damaged a maintenance shed although no radiation leakage confirmed by IAEA. UAE is one of the most developed West Asian countries with no enemies and safest horizon for international investment and home for World top multinationals and business empires.
United Arab Emirates (UAE) is a country in West Asia and situated on the eastern end of Arabian Peninsula. It is a federal semi constitutional monarchy comprising of seven emirates with Abu Dhabi as national capital. The other emirates are; Dubai, Ajman, Sharjah, Ras al Khaimah, Umm al Quwain, and the emirate of Fujairah. It is overlooking beautiful blue waters of the Gulf. Oman Sultanate share its land border in east and Saudi Arabia is the southwestern neighbour. It also shares its maritime border with Qatar in west, Iran to the north and with Oman in east in Gulf of Oman. It was a British protectorate since 1820 and part of the Trucial states. It achieved full independence from Britain on 2 Dec 1971. The total area is 83,000 square kms and Population is 12 million. The state religion is Sunni Islam and Arabic is the official language. English as corporate language also widely spoken. There are large number of migrant population from Indian sub -continent. There are about 3 million Indians based in UAE. The president of UAE is King Mohamed Bin Zayed Al Nahyan, Sultan of Abu Dhabi. Th prime minister is Sultan of Dubai Mohamad Bin Rashid Al Maktoum. The other emirate heads are designated as Deputy PMs.
UAE is considered to be a middle power in Global affairs and one of the most attractive destinations for business tycoons, film stars, corporate giants and also known as smugglers paradise. Gold souk is the world famous Gold markets with hundreds of goldsmiths, jewellers’ outlets dealing in millions of dollars every day. The most important asset of Emirates its liquid gold. UAE has the 7th largest Oil reserves of World and also posses7th largest natural gas reserves. UAE has the most diversified economy among the Gulf Cooperation Council member states with main focus now on business and investment hub and attractive tourist destination. It has also become a transit hub of most of the international Airlines of the world aviation, linking East with West. UAE is a member of United Nations, Arab League, OIC, NAM. WTO, BRICS and dialogue partner in Shanghai coop council. UAE was one of the founding members of OPEC but it has decided to quit it on 10 May 2026 as Iran rained missiles during Op True promise 4 and considered it as ally of USA. India and UAE also members of 12U2 group, formed in 2021, Israel and USA are other two members
UAE became the target of Iran Revolutionary Guard rocket force because of an American military base located and leased to US Armed forces. AL Dhafra Air base is the primary US military installation in UAE, which is located about 35 kms southwest of Dubai city. It is a strategic Joint Air base shared by USAF, French Air force and UAE Airforce. It is the HQ of 380th Air Expeditionary wing of USAF. It has four F 15 Eagle and F 35 II lightning fighter sqns, Refuelling tankers, AWACs, MQ 9 Reaper flights and Iron Dome shield. The second base is Jabel Ali port which provides Logistics and refuelling facility to US Warships and repair facility to US Navy,
India UAE trade relations existed even in 3000 BC when Arabian traders called Magan and Dilmun sailed from Musandam, muscat and salaah ports in Gulf of Oman and crossed Arabian Sea for Indian ports of Okha, Dwarka, Porbandar in Gujrat and Kannur, Calicut in Malabar coastal towns and traded in Gold, spices, silk, dates and porcelain. Trade relations continued during colonial days as both countries were British subjects. India UAE relations blossomed especially after 1971 as UAE discovered vast oil reserves and also achieved full sovereignty covering multi domains. India and UAE trade are based on strong leadership, mutual trust, strong bonding and shared vision for prosperity and development.
The execution of “comprehensive strategic partnership “treaty in 2017 laid down foundation for even closer economic relationship as moderate bilateral trade between two nations which was worth US $ 180 million in the 1970 -71, soared to US $ 100,05 billion $ in Fy 2024- 25. Today UAE is India’ s largest third largest trade partner and second largest export destination with exports of 38 billion $ and India imported UAE goods worth 64 billion US $ consisting basically of Crude oil and LNG. India basically exports machinery, gems, jewellery, food, milk, textiles, and petroleum products. Investment is a major pillar of bilateral relationship. UAE has invested about 22 billion $ in various fields in Indian joint ventures. Comprehensive Economic Partnership Agreement (CEPA) was a landmark agreement signed between HH Sheikh Mohamed Bin Zayed Al Nahyan and PM Narendra Modi on 18 Feb 2022 with almost zero tariff on goods and services of both countries traded wef 1 May 2022. Another MOU was signed in 2023 for trade in local currency settlement between RBI and Central bank of UAE bypassing Dollar trade. The digital payment platforms of India (UPI system – Rupay) and AANI system -Jaywan) was to be linked for direct dealing in Dirhams / Rupee, for seamless cross border payments.
The Indo-UAE bilateral relationship will go beyond traditional fields to new areas ie Artificial intelligence (AI), Fin tech, innovative health care, renewable energy, critical minerals, civil nuclear field and defence, which are essential in current geo political environment. Space exploration, counter terrorism also new horizons of cooperation. The future of this strong bonding is bright, forward looking and reliable and full of opportunity.
As the Bharat Airforce 1 entered UAE airspace at 1100h on 15 May 2026 it was escorted by a flight of F 16 E, flying falcons of UAE Airforce and guarded it till the time, Indian Aircraft landed at Abu Dhabi International Airport. Reciprocating Modi’s gesture when UAE president visited India in Jan 2026, HH Sultan Mohamed bin Zayed welcomed Indian PM with open Arms and warm hug at the Airport. He was given a guard of honour also at the tarmac only. Both the leaders headed for the palace where various MOUs relating to Defence, shipping, Energy and technology were signed. The huge investment of 5 billion US $ in India, was declared by UAE govt. The important MOUs in energy sector inked were firstly Potential Abu Dhabi Oil Company (ADNOC) will develop 30 million barrels capacity Oil storage facility in Odisha, Secondly, Potential huge Oil storage for India will be allocated at Fujairah.
Thirdly, collaboration in LPG/ LNG storage facilities in India and fourthly long term sale and purchase agreements for LPG / LNG will be ensured. UAE will ensure that India gets its necessary supply of Crude Oil and LNG. The storage facilities developed at Chandikol in Odisha and Mangalore at Karnataka will enhance the reserves to 30 million barrels, It would boost the present storage capacity of 5.3 to 11.8 million tonnes. The UAE recently has exited from OPEC and plans to enhance its output from 3 mbd to 5 mbd. ADNOC has also signed an agreement for supply of cooking gas with Indian Oil corporation. UAE is also planning to built parallel pipe line along with current Habshan- Fujairah existing pipe line which would enhance the supply from 1.8 million barrel per day to almost 3.8 mbd.
Indian PM strongly condemned attack on Oil facilities and infrastructure projects of UAE. He said India stands with UAE shoulder to shoulder under all circumstances and will continue to do so in future too. He addressed his highness as brother and termed this short visit as extraordinary. He praised the leadership of President of UAE under war conditions for strong courage, wisdom and control. He tweeted on Post X enroute to Europe. India firmly stands with UAE and his visit would solidify bonds of friendship between us and achieve growth, peace and prosperity. A day is not far, when dream of Indian PM will see day of light, when direct underwater 2000 km Oil pipeline along with Tube railway line will link Fujairah port of Emirates and Mundra port in Gujrat bypassing Strait of Hormuz.