Oil Reserves To LPG Supply : UAE Announces $5 Billion Investment In India As PM Modi Visits Abu Dhabi

15th May 2026 at 10:53 PM

1 minute read

Abu Dhabi : It was a brief visit by Prime Minister Narendra Modi to the United Arab Emirates on Friday, but it yielded big returns for New Delhi. The PM’s visit to Abu Dhabi came at a time of geopolitical churn in West Asia and continued uncertainty in global energy markets. Against the backdrop of the ongoing regional conflict and concerns over disruption to critical shipping routes, including the Strait of Hormuz, both sides stressed the need for stability, connectivity and economic resilience.

The agreement moves beyond standard military exercises to focus on the joint development and co-production of advanced defense technologies, deeper intelligence sharing, and stricter counter-terrorism cooperation. In the energy sector, India and the UAE signed a Memorandum of Understanding on Strategic Petroleum Reserves to strengthen India’s energy security amid volatile crude markets and supply disruptions linked to regional tensions.

The two sides also concluded an agreement on supplies of Liquefied Petroleum Gas, aimed at ensuring stable and long-term energy supplies to India as it seeks to secure and diversify imports and limit the impact of global price shocks on domestic consumers. The agreement was signed between Indian Oil Corporation (IOCL) and ADNOC, secures a long-term, prioritised supply of fuel from the UAE, which fulfils roughly 40 per cent of India’s domestic LPG requirements.

In addition, the UAE announced investments worth USD 5 billion, targeted at boosting Indian infrastructure projects, expanding credit capacity at RBL Bank, and injecting liquidity into housing financier Sammaan Capital. The agreements, according to officials, showed how India-UAE ties were expanding beyond traditional trade and energy cooperation into defence, logistics, infrastructure and finance.