India and UAE Sign Defence, Energy and Shipping Agreements
Prime Minister Narendra Modi met UAE President Sheikh Mohamed bin Zayed Al Nahyan on May 15, 2026, as the countries signed agreements on defence industrial collaboration, strategic petroleum reserves and LNG supply. The UAE will invest up to $5 billion to deepen economic ties. The visit came after Iranian strikes on Fujairah injured three Indian workers and set an oil refinery ablaze.
Al-MonitorPrime Minister Narendra Modi visited the United Arab Emirates on May 15, 2026, where he met UAE President Sheikh Mohamed bin Zayed Al Nahyan during an official visit reception in Abu Dhabi. India and the UAE signed pacts on defence, energy and shipping the same day. The agreements were inked during a meeting between Modi and Sheikh Mohamed bin Zayed Al Nahyan.
The strategic defence partnership includes deepening defence industrial collaboration, cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange, according to an official statement.
India and the UAE agreed on strategic petroleum reserves, with potential storage of crude oil in Fujairah, UAE, to form part of the Indian strategic petroleum reserve. They also signed deals related to the supply of liquefied natural gas (LNG).
The UAE will invest up to $5 billion to further deepen economic ties with India, Narendra Modi said. Sheikh Mohamed bin Zayed said in a post on X that talks with Modi explored “measures to give new momentum to cooperation in energy, technology, and other priority sectors”. The agreements come after the UAE accused Iran of targeting its eastern coast emirate of Fujairah with drones and missiles.
Iran strikes on Fujairah set an oil refinery on fire. Three Indian workers were injured in the Iranian strikes on Fujairah. Narendra Modi condemned the strikes on the UAE in a post on X. During the meeting with Sheikh Mohamed bin Zayed Al Nahyan, Modi renewed emphasis on condemnation of the attacks that targeted the United Arab Emirates in the strongest terms.
3 million Indians living or working in the UAE. India raised its fuel prices by 3 percent after feeling the effects of the regional conflict. India imports 90 percent of its oil, with roughly half of those imports passing through the Strait of Hormuz.
The pacts reflect long-standing efforts to strengthen bilateral ties at a time when energy security has grown more fragile for major importers. The defence elements focus on practical cooperation across multiple domains rather than a formal treaty structure.
Modi’s visit occurred against the backdrop of direct Iranian attacks on UAE territory, adding urgency to discussions on maritime security and information exchange.
Key Facts
Story Timeline
6 events- 2026-05-15
Prime Minister Narendra Modi visits UAE and meets Sheikh Mohamed bin Zayed Al Nahyan in Abu Dhabi
4 sourcesAl Jazeera · Reuters - 2026-05-15
India and UAE sign pacts on defence, energy, shipping, strategic petroleum reserves and LNG
3 sourcesAl Jazeera · official statement - 2026-05-15
UAE announces up to $5 billion investment to deepen economic ties with India
1 sourceNarendra Modi - 2026-05-15
Narendra Modi condemns Iranian strikes on Fujairah during meeting and on X
2 sourcesNarendra Modi - recent days
Iranian strikes on Fujairah set oil refinery on fire and injure three Indian workers
2 sourcesUAE · Al Jazeera - recent
India raises fuel prices by 3 percent amid energy crisis linked to Strait of Hormuz disruptions
1 sourceAl Jazeera
Potential Impact
- 01
Higher fuel costs for Indian consumers and industries due to 3 percent price rise
- 02
Increased economic ties through $5 billion UAE investment
- 03
Enhanced defence industrial and maritime security cooperation between India and UAE
- 04
Potential addition of UAE crude storage to India's strategic petroleum reserves
- 05
Strengthened bilateral response to regional security threats following Fujairah attacks
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