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By P.K.Balachandran/Ceylon Today
Colombo, February 19: Indian Prime Minister Narendra Modi last week was in the United Arab Emirates (UAE) and Qatar, seeking to greater economic engagement with these rich West Asian countries, which are also being wooed by China.
This was Modi’s seventh trip to the UAE since taking office in 2014, and his third in eight months, which shows the importance he attaches to this federation which is the Indians’ El Dorado.
“I always feel that when I come here, I feel like I have come home,” Modi said. And it is another home for many Indians as 30% of the population are Indians.
Indians have not only prospered here and sent money home but are also one of the key pillars of the UAE’s booming economy.
The UAE President Sheikh Mohamed bin al Zahyan had visited India in January and tweeted: “The UAE and India are united by our shared keenness to develop the bilateral strategic partnership to achieve further progress and build a better future for our peoples.”
IMEC
The leaders signed a pact to advance efforts for the India-Middle East-Europe Economic Corridor (IMEC), an initiative unveiled at the Group of 20 summit hosted by India in September. The proposed corridor will connect India to Europe via the Middle East, including through the UAE, Saudi Arabia and Israel, by rail and by sea.
Led by the US the initiative is meant to counter China’s Belt and Road infrastructure-building initiative (BRI).
Closer cooperation with Gulf countries would boost India’s energy security. In February 2022, India and the UAE inked a comprehensive economic partnership agreement that eliminated tariffs on nearly 80% of goods. Modi’s latest trip to the UAE produced a fresh memorandum of understanding to expand cooperation on trade. Annual bilateral trade has reached US$ 85 billion, making the UAE India’s third-largest trading partner after the US and China. India is also among the biggest exporters to the UAE and buyers of Emirati oil. During Modi’s trip to the UAE in July, the countries agreed to conduct trade in their own currencies instead of the dollar.
Indians make up 3.5 million of the 10 million people living in the UAE. Many Indian companies are making inroads there.
India-Gulf relations go back into the distant past. Indian traders were active in the Persian Gulf long before the oil boom, investing in pearl fishery operations, buying pearls and dates and supplying locally needed commodities from India. India was the preferred source for textiles, spices and consumables, furniture and furnishings.
A missionary hospital in Miraj in southern Maharashtra was the preferred destination for complex medical care, even for the ruling Sheikhs. Boat builders from the Kerala coast were much sought after. It was an Indian entrepreneur who first introduced electricity to Dubai by using kerosene-driven generator sets.
Successful Indian entrepreneurship was evident across a number of sectors in trade, retail, construction, real estate, healthcare, education, IT, services and other areas. Indians were the biggest investors in UAE real estate projects while the second place was taken by UK citizens, mostly of Indian origin.
Prime Minister Narendra Modi’s first visit to the UAE on August 16-17, 2015 set the stage for transforming the relationship. The Joint Statement of August 17, 2015, listed 31 agreed points, the first of which was, “Elevate the India-UAE relationship to a comprehensive strategic partnership”.
Other points included the creation of the Infrastructure Investment Fund of USD 75 billion, an increase in trade by 60 per cent in five years, UAE’s participation in the development of India’s strategic petroleum reserves, cooperation in space, nuclear energy and education sectors.
The Joint Statement issued on July 15, 2023, during the PM’s fifth visit to the UAE, indicates progress on various items listed in 2015. The two countries had signed a Comprehensive Economic Partnership Agreement (CEPA) in February 2022, which further boosted bilateral trade. UAE has become the fourth largest investor in India.
An MoU was signed to promote the use of local currencies for cross-border transactions. Interlinking of payment and messaging systems was initiated. A campus of the Indian Institute of Technology-Delhi is being established in Abu Dhabi, initially offering a Masters program in Energy Transition and Sustainability.
A Hindu temple has been constructed in the UAE, though it is an Islamic country. Modi inaugurated the temple during his latest visit.
Qatar
India-Qatar bilateral relationship has been steadily expanding in recent years by regular and substantive engagements between the two countries. Relations between both countries span across all domains such as political, trade, investment, energy, security, education, culture, and sports.
The two countries have strong trade relationship with a bilateral trade of about US$ 19 billion in 2022-23. Qatar is an important pillar of India’s energy security. Recently QatarEnergy and Petronet LNG Ltd. signed a long-term Sale and Purchase Agreement for supply of 7.5 MMTPA LNG for 20 years starting from 2028.
Qatar is also an important source of foreign direct investments into India.
According to the Indian Ambassador in Qatat, there have been several large investments by Qatar in India recently. The recent LNG Agreement between both countries is important for India’s energy security and there are several opportunities for enhancing this pillar including mutual investments in gas infrastructure.”
Over 835,000 strong and vibrant Indian community in Qatar is testament to the close people-to-people ties that continue to nurture the cultural bonds between the two countries. 20 schools and an Indian university are functioning in Qatar.
Talking about the Indian community, the Ambassador said, “Qatar is second home to more than 800,000 Indians and the closeness of both countries was clearly visible in the celebration by the community of Qatar’s victory in AFC 2023 as well as the pride in the community on Qatar’s great success in hosting FIFA World Cup 2022.
Release of Indian Naval Officers
Over the weekend, Qatar released eight Indian nationals previously arrested on espionage charges. All of whom were veterans of the Indian Navy. The eight suspects were accused by Qatar in August 2022 of leaking details of their work for the Qatar-based firm Dahra Global to Israel. Although the details of the case have not been disclosed, the firm’s work advising the Qatari government on the acquisition of Italian submarines had led analysts to theorize that Qatari authorities suspected the eight Indian nationals of passing the details of Doha’s nascent submarine program on to Israeli intelligence.
After the eight were sentenced to death by a Qatari court in October 2023, Indian officials at the Ministry of External Affairs expressed their shock at the decision and announced their intention to “take up the verdict with Qatari authorities.”
The subsequent release of the prisoners represents the culmination of India’s efforts to seek the release of the prisoners after a Qatari court commuted the death sentences of the eight Indian nationals late last year.
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