Sun, Jan 25, 2026

UAE-India signs Comprehensive Economic Partnership Agreement (CEPA)

Venture Capital

Sarah J

Posted on Sun, Jan 25, 2026

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UAE President Sheikh Muhammad bin Zayed al-Nahyan recently conducted a three-hour engagement in New Delhi with Prime Minister Narendra Modi, marking his fifth visit to India in ten years and his third as President.

The warmth of the relationship was highlighted by PM Modi personally receiving the President at the airport, followed by a customary car ride to the talks.

The Concept of Strategic Autonomy

Mutual Policy Goal: Both nations highlighted strategic autonomy-the ability to make independent foreign and security policies based on national interests-as a core principle.
Exclusive Recognition: India includes the phrase "strategic autonomy" in joint statements with only a few countries, such as France.
UAE's "Northstar": For the UAE, strategic autonomy is viewed as a "northstar" in a fragmented world to avoid zero-sum competition and reduce international polarisation.

Economic and Infrastructure Agreements

Energy Security: The two countries signed a long-term agreement for India to purchase 0.5 million metric tons of liquefied natural gas (LNG) per annum from the UAE for 10 years, starting in 2028.
Dholera Investment Region: A joint development project in Gujarat’s Dholera state will focus on key strategic infrastructure, including an international airport, a smart urban township, a greenfield port, and railway connectivity.
Civil Nuclear Cooperation: The nations will cooperate on developing and deploying large nuclear reactors and small modular reactors under new Indian laws.
Digital Embassies: A relatively new concept was introduced involving "digital embassies," which allow a country to extend its sovereign digital infrastructure and store vital data in a foreign country while maintaining control and ownership of that data.

Strategic Defence Partnership (SDP)

New Institutional Framework: The signing of a Letter of Intent for a Strategic Defence Partnership signals a shift toward a more institutionalised framework for security cooperation.
Industrial Collaboration: The partnership aims to move beyond simple exercises toward defense industrial collaboration, including the co-production of weapons and technologies.
Expanded Cooperation Areas: Future focus areas include special forces training, advanced technology innovation, counter-terrorism, and addressing threats in cyberspace.
Evolution of Ties: This partnership builds on a year of "watershed" momentum, including visits from UAE service chiefs and the Dubai Crown Prince, as well as regular participation in the Dubai Air Show.

Geopolitical and Regional Context

Diversification of Ties: Analysts suggest the UAE is using its relationship with India to diversify its strategic options.
Regional Rivalries: The deepening of ties occurs against a backdrop of competition between the UAE and Saudi Arabia for influence in Yemen and Sudan, as well as the formation of an "Islamic NATO" involving Saudi Arabia, Pakistan, and Turkey.
Maritime Security: The UAE now views India as a primary partner for maritime security and innovation in the Indian Ocean region, moving beyond traditional Western allies.
Indian Footprint in the Gulf: The partnership strengthens India’s influence in the Gulf without requiring formal alliance obligations or direct involvement in regional conflicts.
Building on Previous Milestones: This cooperation builds on the 2022 Comprehensive Economic Partnership Agreement (CEPA) and the 2023 India-Middle East-Europe Economic Corridor (IMEC).

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