India's view of the world · A factual referenceLast updated 12 May 2026 · Edition 04

COUNTRY RELATIONSHIP · UNITED ARAB EMIRATES

India & United Arab Emirates

CEPA PARTNERTRADEENERGYDIASPORA

India's largest Arab trading partner and home to 3.5 million Indians - the largest diaspora community globally. The CEPA concluded in 88 days (2022) and covers 90% of India's exports duty-free. The UAE is a growing source of sovereign wealth investment in India across infrastructure, technology, and food security.

COOPERATION AREAS

Where India and United Arab Emirates actually work together

6 active areas of cooperation, as of 12 May 2026

01 TRADEDEEP

CEPA concluded in record time

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) was signed in February 2022 after just 88 days of negotiations - the fastest CEPA India has concluded. It covers goods, services, and investment; 90% of Indian goods exports enter the UAE duty-free.

CEPAGOODSSERVICES
02 ENERGYDEEP

Oil, LNG, and renewables

The UAE is India's third-largest crude oil supplier. ADNOC has equity stakes in Rajasthan oil fields. Renewable energy cooperation - solar, green hydrogen - expanded under the UAE COP28 presidency. IRENA is headquartered in Abu Dhabi.

OILLNGSOLAR
03 INVESTMENTDEEP

Sovereign wealth flowing into India

ADIA (Abu Dhabi Investment Authority) and Mubadala have committed billions to Indian infrastructure, fintech, and logistics. Total UAE FDI into India exceeded $20bn cumulative by 2025, making UAE the 7th largest FDI source.

ADIAMUBADALAFDI
04 PEOPLE-TO-PEOPLEDEEP

3.5 million Indians, largest diaspora

India's largest diaspora community is in the UAE. Remittances from the UAE to India exceeded $18bn in FY24. The two governments cooperate closely on welfare of Indian workers, particularly in construction and domestic service sectors.

DIASPORAREMITTANCESWELFARE
05 TECHNOLOGYGROWING

Digital payments and data centres

UPI was launched in UAE in 2023 - the first Middle East country. NPCI International and local payment networks are integrating. UAE is a growing hub for Indian data centres, cloud infrastructure, and AI compute.

UPICLOUDDATA CENTRES
06 FOOD SECURITYACTIVE

I2U2 food corridor

Under the I2U2 grouping, UAE is financing large-scale integrated food parks in Indian states (Gujarat, Madhya Pradesh, Andhra Pradesh) with $2bn committed. Israel provides agri-tech, India the land and labour.

I2U2FOOD PARKSAGRI

TRADE & INVESTMENT

By the numbers

All figures FY 2023–24 unless noted. Source: DGFT, Ministry of Commerce.

$83.6bn
Total bilateral trade in goods
$35.5bn
India exports to country
$48.1bn
India imports from country
$4.1bn
Israeli FDI into India (cumulative)

Trade trajectory · USD bn

FY15FY20FY24

TOP TRADED ITEMS

Petroleum products (refined)28% →
Gems and jewellery18% →
Crude oil35% ←
Gold and silver20% ←
Engineering goods9% →
Pharmaceuticals5% →

AGREEMENTS & MILESTONES

The relationship since 1972, in 12 dates

1972

Diplomatic relations established

1975

First large-scale Indian worker migration to Gulf

2017

Comprehensive Strategic Partnership declared

2019

Order of Zayed awarded to PM Modi

2022

CEPA signed - 88 days of negotiations

2023

UPI launched in UAE

2023

I2U2 food park framework signed, Gujarat summit

2024

ADIA invests $4bn in Indian infrastructure fund

2024

Rupee–Dirham settlement mechanism expanded

2025

CEPA review - services and digital chapters

2025

Joint data centre and cloud MOU signed

2026

India-UAE Strategic Dialogue, Abu Dhabi

CURRENT STATE

Where things stand, May 2026

The relationship is at peak transactional depth. CEPA is delivering - Indian exports to UAE grew 18% in the first two years post-CEPA. Sovereign wealth investment from ADIA and Mubadala into India's infrastructure and technology sectors is growing structurally. The UAE-India rupee-dirham direct settlement mechanism, operational since 2024, is gradually reducing dollar dependency in bilateral trade. The diaspora welfare framework was strengthened after the 2024 amnesty programme allowed undocumented workers to regularise status.

SIGNALS TO WATCH

CEPA services chapter expansion - advanced stage
Rupee-Dirham settlement - live and growing
I2U2 food park Phase 2 funding disbursement
Indian workers digital welfare portal - launched Q1 2026
Dubai-Mumbai direct data cable project

IN CONTEXT

How India and United Arab Emirates cross paths multilaterally