India, UAE strengthen ties with key investment treaty
ECONOMY & POLICY

India, UAE strengthen ties with key investment treaty

India and the United Arab Emirates (UAE) formalised a significant bilateral investment treaty and various agreements related to fintech and digital infrastructure projects. These developments were announced during Prime Minister Narendra Modi's two-day visit to the Gulf nation.

The bilateral investment treaty is anticipated to play a crucial role in fostering investments between the two countries, according to a statement from the Prime Minister's Office (PMO).

Speaking during his meeting with UAE President and Ruler of Abu Dhabi, Mohamed bin Zayed al Nahyan, Modi emphasised the treaty's long-term impact and its significance for G-20 nations.

The UAE stands as India's seventh-largest source of historical Foreign Direct Investment (FDI), totalling $16.67 billion. This constitutes 2.5% of India's overall inbound FDI from the country since 2000, as per data from the Department for Promotion of Industry and Internal Trade.

FDI from the UAE to India increased to $3.35 billion in FY23, rising from $1.03 billion in FY22, and reaching $1.1 billion in the first six months of the current financial year.

Earlier in February 2022, India and the UAE signed the Comprehensive Economic Partnership Agreement, effective from May 2022. The UAE has become India's second-largest export destination and third-largest trading partner, with total trade reaching $85 billion.

Additionally, both countries signed an Intergovernmental Framework Agreement on the India-Middle East Economic Corridor (IMEC). This initiative aims to enhance regional connectivity, proposing a sea-land connectivity project linking India with West Asia and Europe to counter China's Belt and Road Initiative.

Agreements were also inked on interlinking national instant payment platforms and domestic debit/credit cards, fostering connectivity between India's United Payment Interface and the UAE's Aani, as well as RuPay (India) and JAYWAN (UAE), respectively.

Furthermore, an MoU on cooperation in Digital Infrastructure Projects was established to facilitate a broad range of collaboration in the digital infrastructure sector, including investment cooperation and the exchange of technical knowledge, skills, and expertise.

This visit marks Modi's seventh to the UAE and the fifth meeting with al Nahyan in the past eight months. As part of the visit, Modi inaugurated the first Hindu mandir in Abu Dhabi, constructed by the BAPS Swaminarayan Sanstha.

The Prime Minister is set to speak as the Guest of Honour at the World Government Summit in Dubai, focusing on global dialogue about governmental processes, policies, and issues related to futurism and technology innovation. Additionally, he will visit Qatar on Wednesday, a surprise visit announced on Monday, following the return of seven Indian Navy personnel facing the death penalty on espionage charges in Qatar to New Delhi.

India and the United Arab Emirates (UAE) formalised a significant bilateral investment treaty and various agreements related to fintech and digital infrastructure projects. These developments were announced during Prime Minister Narendra Modi's two-day visit to the Gulf nation. The bilateral investment treaty is anticipated to play a crucial role in fostering investments between the two countries, according to a statement from the Prime Minister's Office (PMO). Speaking during his meeting with UAE President and Ruler of Abu Dhabi, Mohamed bin Zayed al Nahyan, Modi emphasised the treaty's long-term impact and its significance for G-20 nations. The UAE stands as India's seventh-largest source of historical Foreign Direct Investment (FDI), totalling $16.67 billion. This constitutes 2.5% of India's overall inbound FDI from the country since 2000, as per data from the Department for Promotion of Industry and Internal Trade. FDI from the UAE to India increased to $3.35 billion in FY23, rising from $1.03 billion in FY22, and reaching $1.1 billion in the first six months of the current financial year. Earlier in February 2022, India and the UAE signed the Comprehensive Economic Partnership Agreement, effective from May 2022. The UAE has become India's second-largest export destination and third-largest trading partner, with total trade reaching $85 billion. Additionally, both countries signed an Intergovernmental Framework Agreement on the India-Middle East Economic Corridor (IMEC). This initiative aims to enhance regional connectivity, proposing a sea-land connectivity project linking India with West Asia and Europe to counter China's Belt and Road Initiative. Agreements were also inked on interlinking national instant payment platforms and domestic debit/credit cards, fostering connectivity between India's United Payment Interface and the UAE's Aani, as well as RuPay (India) and JAYWAN (UAE), respectively. Furthermore, an MoU on cooperation in Digital Infrastructure Projects was established to facilitate a broad range of collaboration in the digital infrastructure sector, including investment cooperation and the exchange of technical knowledge, skills, and expertise. This visit marks Modi's seventh to the UAE and the fifth meeting with al Nahyan in the past eight months. As part of the visit, Modi inaugurated the first Hindu mandir in Abu Dhabi, constructed by the BAPS Swaminarayan Sanstha. The Prime Minister is set to speak as the Guest of Honour at the World Government Summit in Dubai, focusing on global dialogue about governmental processes, policies, and issues related to futurism and technology innovation. Additionally, he will visit Qatar on Wednesday, a surprise visit announced on Monday, following the return of seven Indian Navy personnel facing the death penalty on espionage charges in Qatar to New Delhi.

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?