Economic Power Shift? India-UAE Trade Soars to $200B as Pakistan-Saudi Lags at $20B

India and the UAE Agreed to Deepen Their Strategic Partnership, Securing an LNG deal and a Strategic Defence Partnership Agreement
Economic Power Shift? India-UAE Trade Soars to $200B as Pakistan-Saudi Lags at $20B
Written By:
Soham Halder
Published on

UAE President Sheikh Mohamed bin Zayed Al Nahyan’s brief visit to India has significantly expanded bilateral cooperation. India and the UAE finalized a series of agreements to double bilateral trade to $200 billion by 2032. It has unveiled plans to have a strategic defence partnership and an LNG deal.

India-UAE Trade Deal

Prime Minister Narendra Modi and the UAE President set a $200 billion annual trade target by 2032. The two nations have also laid out a broad agenda to shore up the ties. Abu Dhabi state firm ADNOC Gas will supply 0.5 million metric tons of LNG a year to India's Hindustan Petroleum Corp for 10 years, the companies said.

The UAE will develop an international airport, smart township, and port in Gujarat’s Dholera Special Investment Region. These are direct investments, rather than credit or loan-based arrangements.

India’s IN-SPACe and the UAE Space Agency will jointly establish a satellite factory and launch complex. Agreements were also signed in nuclear energy and Artificial Intelligence. It highlights a focus on future-ready sectors.

President Sheikh Mohamed bin Zayed Al Nahyan mentioned on X: “Today I was pleased to meet with the Indian Prime Minister in New Delhi to discuss opportunities to further strengthen the deep-rooted and historical ties of cooperation between our countries. Committed to fostering sustainable development and economic growth, the UAE and India will continue to work together to advance progress in future-focused sectors and ensure mutual benefits for our countries and people."

$200B VS $20B

The Shehbaz Sharif government has set a $20 billion trade and investment target with Saudi Arabia. Its current trade stands at $5.7 billion, and the first phase of the $5 billion investment has yet to materialise. It reflects a slower pace of implementation.

Both India and Pakistan are moving toward a strategic partnership in defense, including joint weapons development, shifting beyond the traditional buyer-seller dynamic.

Saudi Arabia and the United Arab Emirates have increasingly diverged in their regional policies. Their rift was exposed during the Middle East conflict involving Yemen. They also had disagreements over oil output.

Final Thoughts

The contrast between the two regional initiatives is notable. India and the UAE are strengthening their relationship on an existing $100 billion trade foundation. It focuses on direct investments and technological collaboration for sustainable growth. In contrast, Pakistan’s $20 billion target depends on loans or credit agreements. It reflects a reactive and constrained approach.

How these deals shape out will decide the future of both nations. The trade deals signal both the scale of ambition and confidence in execution.

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