Mohan Sinha
24 Jan 2026

NEW DELHI, India: India signed a US$3 billion deal this week to purchase liquefied natural gas from the United Arab Emirates, making it the UAE's top customer.

This was among a series of agreements signed by U.A.E. President Sheikh Mohamed bin Zayed Al Nahyan and India's Prime Minister Narendra Modi during their meeting in the national capital. Both leaders hope to double bilateral trade to $200 billion by 2032.

The two countries also signed a deal on nuclear cooperation, development, and deployment of "large nuclear reactors", and nuclear safety.

The meeting between Sheikh Mohamed and Modi primarily focused on strengthening cooperation across trade, energy, defense, and emerging technologies, India's foreign secretary Vikram Misri told reporters, reaffirming the comprehensive strategic ties that have expanded over the past decade.

India and the UAE have become strong business partners in recent years. Trade increased after they signed an economic agreement in February 2022 that lowered taxes on goods and opened markets for both countries. Since then, trade between them has exceeded $100 billion, and the leaders aim to double it by 2032.

With this deal, India will purchase 0.5 million metric tons of natural gas annually from the UAE for 10 years, starting in 2028. The two countries also plan to work closely on defense. They also made deals in the space and food sectors. The UAE also promised to invest in Gujarat, Prime Minister Modi's home state, to develop a special investment area with airports, ports, banking facilities, and smart cities.

This visit is essential because tensions are rising in West Asia, especially after recent events involving Iran. There are also ongoing problems between Saudi Arabia and the UAE over Yemen, and the situation in Gaza remains unstable.

The visit shows that India and the UAE want to stay close partners during uncertain times in the region and the world.

Late last week, U.S. President Donald Trump invited Prime Minister Modi to join the Board of Peace on Gaza, of which the U.S. President was the chairperson. Indian officials were mum on whether Modi had accepted the invitation.

Experts say the India-UAE relationship is strong and growing. With problems in West Asia, plans for Gaza, and tensions with Iran, both countries want to talk and support stability in the region.

India has strong trade and people-to-people ties with West Asia and is working closely with key partners, such as the UAE, as global politics becomes more complex.