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.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement