In 2023, India-UAE ties reached new heights, expanding from bilateral to multilateral cooperation. The year witnessed landmark developments, including the announcement of the India-Middle East Economic Corridor (IMEEC) and the UAE’s inclusion in the BRICS grouping. These initiatives, coupled with significant advancements in trade, defence, and climate action, underscore the deepening and multifaceted nature of the India-UAE partnership.
BRICS Expansion and Global Engagements: The UAE’s accession to BRICS, effective from January 1, 2024, signifies a strategic move, aligning the nation with major emerging economies (Brazil, Russia, India, China, South Africa). This expansion consolidates the UAE’s global economic and diplomatic engagements, emphasizing its commitment to multilateralism and collaboration.
India-Middle East Economic Corridor (IMEEC): A pivotal announcement during the G20 summit in September was the establishment of the IMEEC, showcasing India and the UAE’s commitment to fostering economic connectivity. The corridor comprises an eastern route linking India to the Gulf and a northern corridor connecting the Gulf to Europe. This ambitious project aims to enhance trade and connectivity, leveraging existing ports and a railway line through UAE, Saudi Arabia, Jordan, and Israel.
Bilateral Trade Surge: The implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) on May 1, 2022, catalyzed substantial growth in bilateral trade. In the fiscal year 2022-23, trade between the two nations surged to a historic high of approximately USD 84.5 billion, marking a 16% year-on-year increase. The CEPA, eliminating duties on various tariff lines, played a pivotal role in this remarkable economic collaboration.
Prime Minister Modi’s Diplomatic Engagements: Prime Minister Narendra Modi’s visit to the UAE in July 2023 underscored the strategic importance of the bilateral relationship. Talks during the visit covered diverse areas, including trade, energy, defence, and food security cooperation. Both nations reaffirmed their commitment to combating extremism and terrorism, emphasizing peace, coexistence, and tolerance.
Joint Committee Under CEPA: The first meeting of the joint committee under the CEPA set an ambitious target of more than doubling non-petroleum trade to USD 100 billion by 2030. Discussions addressed various aspects of the agreement’s implementation, emphasizing a comprehensive approach to strengthen economic ties.
COP28 Climate Summit and Sustainable Cooperation: The COP28 climate summit in Dubai marked a pinnacle in India-UAE cooperation. Both nations collaborated closely on climate change issues, emphasizing collective global action. Commitments were made to enhance cooperation on climate ambition, decarbonization, and clean energy. The leaders stressed the need for developed countries to fulfill financial commitments to support climate action in developing nations.
Multilateral Platforms – G20 and BRICS: The UAE’s strong support for India’s G20 presidency highlighted the nations’ collaboration on global platforms. The BRICS expansion with the inclusion of the UAE reflects the growing significance of emerging economies in shaping the global order. Both nations demonstrated mutual support on various multilateral fronts, fostering a united front in addressing global challenges.
Special Guest at G20 Summit: As the host of the G20 summit in 2023, India extended an invitation to the UAE to be a special guest, showcasing the strong bilateral relations and increasing synergy on international forums. Discussions encompassed areas like energy, healthcare, defence, space, and climate change.
Future Collaborations: The year 2023 laid the foundation for continued collaboration, with Prime Minister Modi scheduled to inaugurate the first Hindu temple in Abu Dhabi in February 2024. This upcoming event exemplifies the enduring partnership and shared commitment to enhancing people-to-people ties.
In summary, the year 2023 witnessed a transformative phase in India-UAE relations, marked by diplomatic milestones, economic cooperation, and joint efforts in addressing global challenges. The deepening ties not only reflect the strategic importance of the bilateral relationship but also underscore the nations’ commitment to fostering a collaborative and inclusive global order.