Basics of UAE
- The United Arab Emirates(UAE) is a country in West Asia, in the Middle East, at the eastern end of the Arabian Peninsula.
- It is a federal elective monarchy made up of seven emirates, with Abu Dhabi serving as its capital.
- It shares land borders with Oman to the east and northeast, and with Saudi Arabia to the southwest; as well as maritime borders in the Persian Gulf with Qatar and Iran, and with Oman in the Gulf of Oman.
Areas of Cooperation
- Historical Relations
- India and the UAE share a long history of trade and cultural exchanges dating back to 3000 BCE with ancient trade routes that connected the Indus Valley Civilization with the Sumerians, facilitating the exchange of goods like spices, silk, and gold.
- Diplomatic relations were formally established in 1972, and the relationship has since evolved into a strategic partnership.
- Political Cooperation
- Politically, the relationship has strengthened with high-level visits and agreements.
- The UAE’s support for India’s bid for a permanent seat in the UN Security Council.
- Cooperation in international forums like the I2U2 Group highlights the political synergy.
- Security Cooperation
- Defence ties have deepened since 2003, marked by joint military exercises like Desert Eagle and Gulf Star-1.
- The Annual Defence Dialogue and counter-terrorism collaboration have further solidified this partnership.
- Economic Relations
- Economic ties between India and the UAE are robust, with bilateral trade reaching $84.5 billion in FY23. The UAE is also India’s second largest export destination.
- The Comprehensive Economic Partnership Agreement (CEPA) signed in 2022 aims to boost trade to $100 billion by 2030.
- Key sectors include energy, infrastructure, and technology.
- The UAE is a significant investor in India’s infrastructure, committing $75 billion.
- The UAE is a major source of remittances to India, second only to the US.
- Socio-Cultural Ties
- Cultural exchanges are vibrant, with the Indian diaspora constituting about 38% of the UAE’s population.
- Initiatives like the construction of a Hindu temple in Abu Dhabi symbolize the cultural bond.
- The interlinking of digital payment platforms (UPI and AANI) has enhanced financial connectivity.
Significance
- More focus on enhancing trade facilitation.
- Protection of migrant workers’ rights
- Collaborations on regional stability
- Strengthening digital and energy cooperation
Challenges
- Despite strong ties, challenges persist. Non-tariff barriers impact Indian exports.
- The rights of migrant workers in the UAE remain a concern.
- Regional instability, such as the Israel-Palestine conflict, also poses risks.