| Prime Minister Modi will visit UAE from 16-17 August where he will meet with Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces as well as Sheikh Mohammed Bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai. Prime Minister Modi will also interact with the large Indian expatriate community in the UAE. Energy cooperation, trade and investment and the welfare of the Indian workers in the country, will be at the top of the agenda. Neelam Deo, director at Gateway House, comments on the importance of this visit. |
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Statement: “The Gulf is critical for India’s energy security. Around 60 percent of India’s energy imports are sourced from the Gulf, with 8 percent from the UAE alone. However, the recent trend of low global oil prices leading to a seller’s market has made the trade equation between the Gulf countries and India more balanced, with India gaining importance as the world’s third largest importer of oil. The relationship between India and the Gulf countries, has surged past the criticality of its traditional energy equation – to addressing broader concerns such as security cooperation and the welfare of the Indian workers in the Gulf as well as deepening investment ties between the countries. The 2.6 million Indians in UAE repatriate approximately $15 billion annually. Prime Minister Modi, on this trip must endeavour to negotiate greater job security and improved working conditions for them. Investments from the Gulf have not been significant in the past, with only about $8 billion from UAE as of 2015. Indian investments in the Gulf are believed to be around $55 billion and the scope for increases on both sides is immense. The infrastructure sector is particularly an area where India could benefit from investments and the expertise of UAE companies in building world–class infrastructure. Meanwhile, the security perceptions of the Gulf countries have evolved in the wake of the P5+1 nuclear agreement with Iran. Israel, with which India has close relations is now viewed differently by the Arab Sheikdoms. The rise of Islamist groups as well as the deteriorating security situation in Afghanistan, are major security concerns for all countries in the region. India‘s existing security co-operation with the Gulf countries can be expanded, especially in the naval sphere. In a significant gesture, last year, the UAE had deported terrorists with alleged links to the Indian Mujahideen, making the relationship mutually beneficial.” |