India and the United Arab Emirates established a framework for strategic defense cooperation on Friday, according to India’s foreign ministry, as both nations work to strengthen their relationship during the Iran war.
The countries also finalized agreements regarding strategic petroleum reserves and liquefied petroleum gas supply during Prime Minister Narendra Modi’s trip to the UAE, officials announced.
“The two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange,” the ministry said in a statement.
Before the diplomatic visit, Indian officials indicated to Reuters that Modi would likely explore long-term energy supply agreements and request assistance in expanding New Delhi’s strategic oil reserves.
The UAE’s recent departure from OPEC last month is anticipated to increase its production capacity and benefit importing nations like India.
The ongoing Iran conflict has disrupted worldwide energy markets through the blocking of the Strait of Hormuz, affecting transportation and commerce throughout the region as Iranian attacks targeted Gulf nations, including the UAE, before a temporary ceasefire was established last month.
The petroleum agreement announced Friday involves a possible expansion of ADNOC’s crude oil storage capacity in India up to 30 million barrels, according to Abu Dhabi’s national oil company in a separate announcement. The deal also examines potential crude storage opportunities in the UAE’s Fujairah as part of India’s strategic reserve system.
ADNOC stated it would investigate expanded LPG supply and trading possibilities with Indian Oil Corp.
“India’s scale and growth trajectory make it one of the defining energy markets of our time. As demand accelerates alongside a rapidly expanding population, the strength of the UAE India energy partnership becomes ever more critical,” said ADNOC managing director and CEO Sultan Ahmed Al Jaber.
New Delhi and Abu Dhabi completed a $3 billion agreement in January for India to purchase LNG from the UAE, its third-largest trading partner, along with a letter of intent to develop a strategic defense partnership.
This development came after Pakistan, India’s regional rival, established a mutual defense agreement with Saudi Arabia last year.
Pakistan has become the primary mediator between Washington and Tehran to resolve the conflict that started with U.S. and Israeli attacks on Iran on February 28. The country has also worked to strengthen Saudi Arabia’s defenses following hundreds of Iranian missile and drone strikes against the kingdom.
Riyadh announced last month it would offer $3 billion in additional assistance to help Pakistan address a multi-billion-dollar financing shortfall related to debt repayment to the UAE.
The Indian ministry also revealed UAE investments totaling $5 billion on Friday, referencing previous agreements including Emirates NBD’s purchase of a 60% stake in RBL Bank last year for $3 billion, and Abu Dhabi’s IHC $1 billion Sammaan investment.
