India and UAE Sign Defense Partnership and Energy Pacts in Abu Dhabi

India and the United Arab Emirates agreed a framework for a strategic defence partnership on Friday, May 15, 2026, during Prime Minister Narendra Modi’s visit to Abu Dhabi, as the two sides moved to deepen cooperation in security and energy. The accords were announced by India’s foreign ministry and come as conflict involving Iran has disrupted Gulf shipping and global energy markets.

Under the defence partnership, the two sides said they would expand cooperation in defence industrial collaboration, innovation and advanced technology, as well as training, exercises, maritime security, cyber defence, secure communications and information exchange.

India and the UAE also signed agreements covering strategic petroleum reserves and the supply of liquefied petroleum gas, the ministry said. Indian officials have signaled interest in long-term energy supply arrangements and in expanding New Delhi’s strategic oil reserves.

The UAE’s decision last month to leave OPEC is expected to boost its output and could benefit importing countries such as India, according to the report. India and the UAE signed a $3 billion agreement in January for India to buy LNG from the UAE, which India describes as its third-largest trading partner.

Regional conflict and energy-market risks

The agreements were announced as the U.S. and Israeli war on Iran, now in its third month, has roiled energy markets, including through the closure of the Strait of Hormuz, a vital chokepoint for global oil flows. The conflict has also disrupted transportation and business across the Gulf, after Iranian strikes hit Gulf countries, including the UAE, before a fragile ceasefire was reached last month.

Investment plans and shifting Gulf alliances

The stronger India-UAE relationship has also unfolded against closer ties between Saudi Arabia and Pakistan, India’s rival neighbor. Pakistan signed a mutual defence agreement with Saudi Arabia last year and has emerged as a mediator between the U.S. and Iran, while also moving to bolster Saudi defences after the kingdom faced hundreds of Iranian missile and drone attacks, the repoSources said.

In its statement on Friday, India’s foreign ministry also announced UAE investments worth $5 billion, pointing to prior deals including Emirates NBD’s $3 billion acquisition of a 60% stake in RBL Bank and IHC’s $1 billion investment in Sammaan.

Officials will be watched for details on the energy agreements and any follow-on commitments tied to India’s strategic reserves and longer-term supply arrangements.