India-UAE Current Affairs

India, UAE inks 5 MoUs

India and United Arab Emirates (UAE) have signed five Memorandum of Understanding (MoUs) in key areas of energy sector, railways, manpower and financial services.

These agreements were signed in PM Narendra Modi’s visit to Abu Dhabi. They were signed in presence of PM Modi, Crown Prince of Abu Dhabi HH Sheikh Mohammed bin and Deputy Supreme Commander of UAE Armed Forces Zayed Al Nahyan at the Presidential Palace, Abu Dhabi.

Signed Agreements are

  • MoU for Technical Cooperation in Rail Sector
  • MoU to institutionalise the collaborative administration of contractual employment of Indian workers in UAE.
  • MoU between Indian Consortium (OVL, BPRL & IOCL) and ADNOC: It was signed for acquisition of 10% participating interest in the offshore Lower Zakum Concession.
  • MoU between Bombay Stock Exchange (BSE) and Abu Dhabi Securities Exchange (ADX): It seeks to enhance cooperation between both the countries in financial services industry.
  • MoU between Government of Jammu and Kashmir and DP World: It seeks to establish multi-modal logistics park and hub in Jammu comprising warehouses and specialized storage solutions.

India-UAE Relations

India-UAE Relations deeply rooted in history and strategic cooperation which is driven by mutual aspirations of both countries. UAE is lynch-pin of the economic, defence and strategic strands of  India’s coordinated strategy to outreach west Asia.

UAE is India’s third largest trading partner after China and the United States. Bilateral trade between India and UAE stood at about $50 billion in 2015-16. It is among the top investors in India in terms of foreign direct investments (FDI) and was the fifth largest supplier of crude oil to India in 2015-16. Besides, there are also more than 2.6 million Indians living in the UAE and their annual remittance is estimated to be around $14 billion.


First Investment Agreement signed between NIIF and Abu Dhabi Investment Authority

India’s National Investment and Infrastructure Fund (NIIF) of India on has signed an investment agreement worth $1 billion with Abu Dhabi Investment Authority (ADIA). With this, ADIA became first institutional investor in NIIF’s Master Fund and shareholder in NIIF’s investment management Company. NIIF is claimed to be India’s first sovereign wealth fund.


The agreement was signed in pursuant to Memorandum of Understanding (MoU) between Department of Economic Affairs (DEA), Finance Ministry and Government of United Arab Emirates (UAE) to mobilise long term investment into NIIF.

National Investment and Infrastructure Fund (NIIF)

The Union Government has set up NIIF in 2015 with aim to attract investments from both domestic and international sources for infrastructure development in commercially viable projects both Greenfield and Brownfield, including stalled projects. It was envisaged to be Category II Alternative Investment Funds (AIFs) under SEBI Regulations. It will also serve as an umbrella fund with several funds underneath it.

It has proposed corpus of Rs. 40,000 crores (around $6 Billion).  Government’s contribution to NIIF is 49% of total commitment at any given point of time. NIIF has been mandated to solicit equity participation from strategic anchor partners, like overseas sovereign, quasi-sovereign, multilateral and bilateral investors.

Two companies viz. NIIFTL, trustee of fund and NIIFL, investment management company of NIIF were incorporated in 2015. Besides, Governing Council also has been set up under chairmanship of Union Finance Minister to act as an advisory council to NIIF.

Few investors of NIIF

NIIF has singed MoUs with Government of UAE, RUSNANO, QIA, RDIF and Japan Overseas Infrastructure Investment Corporation for Transport & Urban Development (JOIN). In addition, DEA has signed terms for cooperation on NIIF with UK Treasury and US Treasury. Besides, India-UK Green Growth Equity Fund (GGEF) also has been announced in April 2017.