PIB Backgrounder: Prime Minister's Visit to the UAE — Advancing Energy, Technology, Connectivity and Strategic Cooperation

📌 Summary:

• PM Modi visited UAE on 15 May 2026 — his 7th visit since 2014; UAE President Sheikh Mohamed bin Zayed has visited India 5 times in the same period
• Bilateral trade crossed US$100 bn for the first time, reaching US$101.25 bn in FY 2025-26; target US$200 bn by 2032
• Bilateral Investment Treaty (BIT) signed Feb 2024, entered into force 31 August 2024
• Cumulative UAE FDI into India: US$25.19 bn (Apr 2000 – Mar 2025); UAE = 7th largest overseas investor in India
• Local Currency Settlement (LCS) system enables INR–AED trade & remittance settlement, reducing dollar dependence
• Energy: UAE is India''s 4th largest crude oil source, 3rd largest LNG source, largest LPG supplier (FY 2024-25); only country participating in India''s Strategic Petroleum Reserve programme
• Indians = largest expatriate group in UAE; key remittance source for India''s forex reserves
• Key Outcomes of 15 May 2026 visit: (1) MoU between ISPRL & ADNOC on Strategic Petroleum Reserves and LNG/LPG storage infrastructure (2) IOCL–ADNOC Strategic Collaboration on LPG supplies (3) Framework for Strategic Defence Partnership — co-development, joint manufacturing, technology sharing (4) Cochin Shipyard Limited (CSL) – Drydocks World (DDW) MoU to set up Ship Repair Cluster at Vadinar, Gujarat (5) CSL–DDW–Centre of Excellence in Maritime & Shipbuilding (CEMS) partnership on skill development in ship repair (6) Term Sheet for 8-Exaflop Supercomputing Cluster — CDAC India and G-42 UAE for sovereign AI / HPC (7) UAE investment commitments to India''s infrastructure and banking sectors

🎯 UPSC Relevance: GS2 — IR (India and West Asia / Look West policy); GS3 — Energy security, Maritime infrastructure, Strategic Defence cooperation.

📝 Prelims Facts:

• Bilateral Investment Treaty between India and UAE entered into force on 31 August 2024
• LCS = Local Currency Settlement system enabling INR–AED settlement
• ISPRL = Indian Strategic Petroleum Reserves Limited; ADNOC = Abu Dhabi National Oil Company
• 8-Exaflop Supercomputing Cluster — CDAC (India) + G-42 (UAE) partnership
• CSL = Cochin Shipyard Limited; DDW = Drydocks World; Ship Repair Cluster located at Vadinar, Gujarat

🔑 Key Term: Strategic Petroleum Reserves (SPR) — Government-owned crude oil stockpile maintained by ISPRL at Visakhapatnam, Mangaluru and Padur to ensure India''s energy security during global supply disruptions.