India, UAE sign major defence and energy agreements amid Iran tensions

India and the United Arab Emirates have signed a series of defence, energy and shipping agreements during Prime Minister Narendra Modi’s visit to Abu Dhabi, as both countries seek closer strategic cooperation amid rising regional tensions linked to the Iran conflict.

The agreements were finalised during talks between Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan on Friday.

According to official statements, the new strategic defence partnership will expand cooperation in defence manufacturing, advanced technology, military training, maritime security, cyberdefence, secure communications and intelligence sharing.

The two sides also signed important energy agreements focused on strategic petroleum reserves and liquefied natural gas supplies. One key proposal includes the possible storage of crude oil in Fujairah as part of India’s strategic petroleum reserve system.

The visit comes shortly after the UAE accused Iran of launching drone and missile attacks targeting the eastern emirate of Fujairah. Authorities said an oil refinery was set on fire during the attacks and three Indian workers were injured.

Modi strongly condemned the strikes during the meeting and reiterated India’s support for the UAE against attacks targeting civilian infrastructure.

The UAE is home to nearly 4.3 million Indians, making it one of the largest overseas Indian communities in the world.

Sheikh Mohamed bin Zayed said discussions with Modi focused on expanding cooperation in sectors including energy, technology and economic investment.

As part of the broader partnership, the UAE also announced plans to invest up to $5bn to strengthen economic ties with India.

The agreements come at a time of growing global concern over energy security due to disruptions linked to the conflict involving Iran and restrictions around the Strait of Hormuz, one of the world’s most important oil shipping routes.

India, which imports about 90 percent of its oil requirements, has been significantly affected by the regional crisis. Roughly half of India’s imported oil passes through the Strait of Hormuz.

The ongoing disruptions have already pushed India to raise domestic fuel prices as concerns over supply and transportation costs continue to grow.