PM Modi in UAE: MoU on strategic petroleum reserves, LPG supply signed amid Iran war; $5 billion investment committed
PM Modi in UAE: PM Modi's short visit to Abu Dhabi comes as a chance for India shore up energy supplies from the UAE and to discuss the welfare of the four-million-strong diaspora in the Emirates amid the impact on fuel supply due to Iran war.
PM Modi in UAE: Prime Minister Narendra Modi landed in Abu Dhabi, UAE, on the first leg of his five-nation visit on 15 May.
The prime minister met UAE President Sheikh Mohamed bin Zayed Al Nahyan during the visit. The two leaders exchanged views on bilateral issues, particularly energy cooperation, as well as on regional and international issues of mutual interest.
“I used to keep speaking to you over the phone, but I was very eager to meet you in person,” PM Modi said during his delegation-level talks with UAE President Sheikh Mohammed bin Zayed Al Nahyan.
Quick answers to key questions
During PM Modi's visit, India and the UAE signed agreements on a Strategic Defence Partnership, a Memorandum of Understanding on Strategic Petroleum Reserves, and an agreement on Liquefied Petroleum Gas (LPG) supplies. An MoU on setting up a Ship Repair Cluster at Vadinar was also signed.
The MoU on Strategic Petroleum Reserves establishes a framework for collaboration on building, maintaining, or storing emergency crude oil supplies between India and the UAE. This initiative aims to act as an energy safety net, stabilizing supply chains and mitigating the impact of volatile global oil prices.
Investments worth $5 billion were committed by the UAE to India during PM Modi's visit. These investments are targeted towards Indian infrastructure, as well as companies like RBL Bank and Samman Capital.
PM Modi's visit to the UAE was significant as it occurred during a period of crisis arising from the US-Iran war and its impact on the Strait of Hormuz. India sought to shore up energy supplies from the UAE, a key energy supplier in West Asia, and discuss regional and international issues.
The UAE is India's third-largest trade partner and its seventh-largest cumulative investment source over the past 25 years. Following the CEPA agreement, FDI from the UAE to India saw a significant increase.
The trip resulted in major agreements and investment announcements across the defence, energy, infrastructure and banking sectors for India.
Here are the major agreements and investment decisions announced today, according to news agency ANI:
- India and the UAE signed an Agreement on Framework for the Strategic Defence Partnership, further strengthening bilateral strategic and security cooperation.
- The two countries also signed a Memorandum of Understanding on Strategic Petroleum Reserves and an agreement on supplies of Liquefied Petroleum Gas (LPG), boosting cooperation in the energy sector.
- In the maritime sector, both sides signed an MoU on setting up a Ship Repair Cluster at Vadinar.
- Investments worth $5 billion were announced in Indian infrastructure as well as in RBL Bank and Samman Capital.
What is an MoU on Strategic Petroleum Reserves?
A Memorandum of Understanding (MoU) on Strategic Petroleum Reserves (SPR) generally refers to a diplomatic and operational framework between countries or energy corporations to collaborate on building, maintaining, or storing emergency crude oil supplies.
These reserves usually act as an energy safety net to stabilise supply chains and mitigate the effects of volatile global oil prices.
"The leaders agreed to promote new initiatives for a comprehensive energy partnership. In this context, they welcomed the conclusion of a Strategic Collaboration Agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company to enhance the UAE’s participation in India’s Strategic Petroleum Reserves to 30 million barrels, and work together to set up strategic gas reserves in India," a statement from the Ministry of External Affairs (MEA) said after PM Modi's trip to Abu Dhabi.
Short visit to Abu Dhabi
PM Modi's short visit to Abu Dhabi was seen as a chance for India to shore up energy supplies from the UAE and to discuss the welfare of the four-million-strong diaspora in the Emirates.
During the crisis arising from the US-Iran war and its impact on vessel traffic through the Strait of Hormuz, India has reached out to key energy suppliers in West Asia. The UAE is India’s third-largest trade partner and its seventh-largest cumulative investment source over the past 25 years, the Ministry said.
PM Modi’s visit to the Emirates comes months after the President of the United Arab Emirates (UAE), Sheikh Mohamed bin Zayed Al Nahyan, visited India for two to three hours in January.
After the UAE, PM Modi will travel to the Netherlands from 15-17 May, where he is scheduled to hold talks with Dutch Prime Minister Rob Jetten and meet King Willem-Alexander and Queen Maxima. The visit is expected to focus on sectors such as semiconductors, green hydrogen, innovation, defence and water management.
(With agency inputs)
- Strengthening energy security through strategic petroleum reserves.
- Investment of $5 billion in Indian infrastructure signals growing economic ties.
- The importance of personal diplomacy in enhancing bilateral relations.
About the Author
Gulam Jeelani is Political Desk Editor at LiveMint with over 16 years of experience covering national and international politics. Based in New Delhi, Jeelani delivers impactful political narratives through breaking stories, in-depth interviews, and analytical pieces at LiveMint since February 2024. The expertise in video production fuels his current responsibilities, which include curating content and conducting video interviews for an expanding digital audience.<br><br> Jeelani also travels during elections and key political events and has covered assembly elections in key states apart from national elections. He has previously worked with The Pioneer, Network18, India Today, News9Plus and Hindustan Times.<br><br> Jeelani’s tenure at LiveMint and previous experience at print and digital newsrooms have honed his skills in creating compelling text and video stories, explainers, and analysis that resonate with a diverse viewership.<br><br> Before moving to New Delhi in 2015, Jeelani was based in Uttar Pradesh, where he worked for five years as a reporter. In 2018, Jeelani was one of the two Indian journalists selected for the Alfred Friendly Fellowship in the US. There, he attended training workshops on reporting and data journalism, and he was attached to the Minneapolis Star Tribune in Minnesota, where he worked as a reporter.<br><br> Jeelani is a Bachelor's in Chemistry and holds a Masters Degree in journalism and mass communication from Aligarh Muslim University. Outside work, he enjoys poetry, cricket and movies.
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