During the PM’s visit to UAE, one of the key areas of focus will be energy security. Two important MoUs in the areas of LPG and Strategic Petroleum Reserves are likely to be concluded during this visit on Friday, a source informed.
Through the current turmoil, the UAE has remained one of India’s most reliable energy partners and continues to be so. With long term supply agreements in place, India’s energy security has been bolstered.
Bilateral merchandise trade crossed US$100 billion for the first time, reaching US$101.25 billion in FY 2025-26. During the UAE President’s January 2026 visit, both sides committed to doubling bilateral trade to US$200 billion by 2032. UAE is India’s 7th-largest investor, with cumulative FDI inflows of US$25.19 billion. Local Currency Settlement (LCS) system between India and the UAE is in place, enabling bilateral trade and remittances to be settled in INR and AED, reducing dollar dependence and transaction costs.
Indians constitute the largest group of expatriates in the UAE. They form the backbone of the UAE economy and society. Their wellbeing is important to both countries. Despite the challenges to the global economy, the diaspora remains a consistent source of remittance to India, having a positive impact on the forex reserves.
