Amid US-Israel conflict, PM Modi to visit UAE
What's the story
Prime Minister Narendra Modi is set to visit the United Arab Emirates today, May 15, as part of a five-nation tour. The trip comes amid heightened tensions in the Middle East due to the ongoing US-Israel conflict with Iran. During his brief stay in the UAE, PM Modi is expected to meet President Sheikh Mohamed bin Zayed Al Nahyan and discuss energy security issues.
Agenda focus
Energy security key topic for talks
The US-Israel conflict has disrupted shipping routes in the Middle East, with Iran blocking traffic in the Strait of Hormuz and the US imposing a naval blockade on Iranian ports. This makes energy security a key topic for PM Modi's talks with President Al Nahyan. According to Hindustan Times, they may sign agreements on LPG supplies and strategic petroleum reserves during this visit.
Energy partnership
Bilateral trade crossed $100 billion in FY 2025-26
Despite the current turmoil, the UAE has been a key energy partner for India. With long-term supply agreements in place, India's energy security is bolstered. Bilateral trade between the two countries crossed $100 billion in FY 2025-26, and both sides aim to double it by 2032. The UAE is also India's seventh-largest investor with FDI inflows of $25.19 billion.
Trade facilitation
Local currency settlement system
A local currency settlement system between India and the UAE allows trade and remittances to be settled in Indian Rupees (INR) and United Arab Emirates Dirham (AED). This reduces dependence on the US dollar and transaction costs. Indians are also the largest expatriate group in the UAE, contributing significantly to remittances.
Europe
PM Modi's itinerary after UAE stop
After leaving the UAE, Modi will head to Europe, visiting the Netherlands, Sweden, Norway, and Italy. In the Netherlands (May 15-17), his visit will focus on semiconductors, water management, defense, and green hydrogen. In Sweden (May 17), he will discuss bilateral ties and address the European Round Table for Industry on Artificial Intelligence (AI) and sustainability. In Norway (May 18-19), he will attend the 3rd India-Nordic Summit. He will attend official meetings in Italy (May 19-20) to discuss strategic partnerships.