UAE-India Strategic Partnership: A New Era of Unprecedented Growth and Collaboration in 2025

Historic Milestones in UAE-India Relations

The bilateral trade between India and the United Arab Emirates (UAE) is set to surpass the ambitious target of $100 billion well ahead of the 2030 deadline. This remarkable achievement underscores the strength of their partnership, which has evolved significantly in recent years.

Recent Developments and Agreements

The relationship has been marked by high-level diplomatic engagement, including visits from UAE’s Crown Prince of Abu Dhabi, Sheikh Khalid Bin Mohammad Bin Zayed Al Nahyan, and the Crown Prince of Dubai. These visits have strengthened collaboration across traditional areas like trade and energy, while expanding into emerging sectors such as polar research, nuclear energy, space, green hydrogen, and critical minerals.

Economic Partnership and Trade

The economic partnership has flourished, with bilateral trade reaching USD 85 billion in 2022-23, making the UAE India’s third-largest trading partner and second-largest export destination. The elimination of long-standing trade barriers has facilitated smoother trade flows across diverse sectors, benefiting traditional industries like oil & gas, gems and jewellery, and information technology, while also promoting growth in new sectors such as green energy, food security, and advanced technology.

Strategic Initiatives and Future Outlook

In February 2024, both countries signed an Intergovernmental Framework Agreement on IMEEC, and in September 2024, they launched the Virtual Trade Corridor (VTC) and MAITRI platform, integrating trade portals and enabling paperless transactions. With over 4.5 million Indians in the UAE – the largest Indian diaspora globally – the people-to-people connection forms the foundation of these relations. Indians have significantly contributed to UAE’s development, and the newly inaugurated BAPS Hindu Temple in Abu Dhabi stands as a symbol of these deep-rooted ties.

Innovation and Technology Cooperation

The countries have signed agreements on interlinking digital payment platforms – UPI (India) and AANI (UAE), which will facilitate seamless cross-border transactions and enhance financial connectivity. As of March 2025, officials from both nations have held talks on connectivity via the India-Middle East-Europe Economic Corridor (IMEEC), strengthening the master application for trade and regulatory interface (MAITRI) and Virtual Trade Corridor.