India, UAE ink pacts on linking digital payment platforms, trade, energy

“Immensely grateful to my brother, HH @MohamedBinZayed, for taking the time to receive me at Abu Dhabi airport,” he posted on ‘X’.

The two leaders have met five times in the last seven months, and this is Modi’s seventh visit to the UAE since assuming office. After holding one-on-one and delegation-level talks, the Ministry of External Affairs (MEA) said the two leaders reviewed the bilateral partnership and discussed new areas of cooperation.

“Had an excellent meeting with my brother HH @MohamedBinZayed. India-UAE friendship is growing stronger and stronger, greatly benefitting the people of our nations,” Modi also posted on ‘X’.

In its statement, the MEA said: “They welcomed deepening of the comprehensive strategic partnership across sectors, including trade and investment, digital infrastructure, fintech, energy, infrastructure, culture and people-to-people ties. Discussions also covered regional and global issues.”

The two sides signed the Bilateral Investment Treaty which will be a “key enabler for further promoting investments in both countries,” it said. India has signed both a Bilateral Investment Treaty and a Comprehensive Economic Partnership Agreement with the UAE.

“The Bilateral Investment Treaty will have long-term impact, and the G20 countries will also see that India and UAE are moving forward on this direction,” Modi told MBZ.

From April 2000-March 2023, the UAE’s investment in India is estimated at around US$ 20-21 billion, of which US$ 15.5 billion is in the form of FDI while the remaining is portfolio investment. In 2022-2023, UAE was the fourth biggest FDI investor for India. It has committed to invest US$ 75 billion in India’s infrastructure sector. Abu Dhabi Investment Authority (ADIA), the principal sovereign wealth fund of the UAE and one of the world’s largest, is an anchor investor in NIIF Master Fund through an investment of US$ 1 billion in the National Infrastructure Investment Fund (NIIF).

The two sides also signed an intergovernmental framework agreement on the India-Middle East Economic Corridor. The MEA said this would build on previous understandings and cooperation, and foster India-UAE cooperation, furthering regional connectivity. The IMEC was announced on the sidelines of the G20 leaders’ summit in New Delhi in September 2023. Modi thanked MBZ for his support to the IMEC which, he said, would have “long-term impact”.

According to the MEA, the two sides also signed agreements on interlinking of digital payment platforms — UPI (India) and AANI (UAE). “This will facilitate seamless cross-border transactions between the two countries. This follows the MoU on interlinking payment and messaging systems signed in July last year during PM’s visit to Abu Dhabi,” it said.

They also signed a pact on interlinking domestic debit/ credit cards — RuPay (India) with JAYWAN (UAE). The MEA said this is “an important step in building financial sector cooperation… (and) will enhance the universal acceptance of RuPay across the UAE”.

Modi congratulated MBZ on the launch of UAE’s domestic card JAYWAN, which is based on the digital RuPay credit and debit card stack. The leaders witnessed a transaction made using the JAYWAN card, the MEA said.

The two sides also signed pacts on energy, an MoU on cooperation in the field of electrical interconnection and trade, which “opens new areas of collaboration in the field of energy, including energy security and energy trade,” the MEA said.

The leaders also discussed the strengthening of energy partnership. “They appreciated that in addition to the UAE being among the largest sources of crude and LPG, India is now entering into long-term contracts for LNG,” the MEA said.

They also signed an MoU on cooperation in digital infrastructure projects. “This will create a framework for wide ranging cooperation, including investment cooperation, in the digital infrastructure sector and also facilitate sharing of technical knowledge, skills and expertise,” it said.

On the culture front, the two sides signed a “cooperation protocol between the National Archives of the two countries”, which will shape extensive bilateral cooperation including restoration and preservation of archival material. An MoU for cooperation in the field of heritage and museums will “foster engagement between the two countries aimed at supporting the Maritime Heritage Complex at Lothal, Gujarat,” the MEA said.

Ahead of the visit, RITES Limited signed an agreement with Abu Dhabi Ports Company, and Gujarat Maritime Board with Abu Dhabi Ports Company, for building port infrastructure and enhancing connectivity between the two countries.

Modi thanked MBZ for his “personal support and graciousness in granting the land for the construction of the BAPS Temple in Abu Dhabi”. “In my very first meeting, when I mentioned this proposed temple, you had said instantly that you can put a finger on a spot (in the map of the UAE), and the land will be granted,” Modi said.

Both sides noted that the BAPS Temple is a celebration of UAE-India friendship, deep-rooted cultural bonds and an embodiment of the UAE’s global commitment to harmony, tolerance and peaceful coexistence, the MEA said.

Modi will address the World Government Summit and inaugurate the BAPS Temple, the first Hindu temple in the country, on Wednesday, before heading to Qatar.