UAE to store 30 million barrels in India’s reserves, commits $5 billion during PM Modi’s Abu Dhabi visit

In a major push to India-UAE strategic ties amid escalating tensions in West Asia, the United Arab Emirates has agreed to store 30 million barrels of crude oil in India’s strategic petroleum reserves and committed investments worth $5 billion across infrastructure and financial sectors.

The announcements came during Prime Minister Narendra Modi’s brief stopover in Abu Dhabi on May 16, where he held wide-ranging talks with UAE President Sheikh Mohamed bin Zayed Al Nahyan during his four-nation Europe tour.

The visit took place days after the UAE came under Iranian missile and drone attacks, lending added significance to the meeting. Modi strongly condemned the attacks, calling them “unacceptable”, and reaffirmed India’s solidarity with the Gulf nation.

“India stands shoulder to shoulder with the UAE,” Modi told the Emirati President, while also backing efforts to restore peace and stability in West Asia.

A key outcome of the visit was a new strategic energy agreement between Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company, expanding the UAE’s participation in India’s strategic oil reserves to 30 million barrels. Both sides also agreed to explore the creation of strategic gas reserves in India.

India and the UAE additionally signed a long-term LPG supply arrangement between Indian Oil Corporation and Abu Dhabi National Oil Company, further strengthening India’s energy security.

The UAE remains a crucial energy partner for India. In 2025, it was India’s fourth-largest crude oil supplier, meeting nearly 11% of the country’s demand, and its largest LPG supplier, accounting for nearly 40% of imports.

The two nations also unveiled investment commitments worth $5 billion. These include up to $1 billion in infrastructure investments through Abu Dhabi Investment Authority and National Investment and Infrastructure Fund, a $3 billion investment by Emirates NBD in RBL Bank, and a $1 billion investment by International Holding Company in Sammaan Capital.

“These investments underscore the UAE’s sustained and long-term commitment to India’s growth story,” the Prime Minister’s Office said.

Defense cooperation also featured prominently, with both countries signing a framework for a strategic defense partnership aimed at boosting collaboration in defense manufacturing, advanced technology, maritime security, cyber defense, secure communications and military training.

India also used the visit to underline the importance of uninterrupted maritime trade routes. Modi stressed that the Strait of Hormuz must remain “free, open and safe”, calling it critical for global energy, food security and regional stability.

In a rare diplomatic gesture, Modi was received personally at Abu Dhabi airport by the UAE President and accorded a guard of honor, while his aircraft was escorted by Emirati Air Force fighter jets, underscoring the warmth in bilateral ties.