Historic agreement between India and UAE: Target to take trade to $200 billion

 New Delhi, 20 January 2026:

Bilateral relations between India and the United Arab Emirates (UAE) have reached a new historic height. In a high-level meeting between Prime Minister Narendra Modi and UAE President Sheikh Mohammed bin Zayed Al Nahyan, the two countries have set an ambitious target of doubling bilateral trade to $200 billion by 2032.

This meeting is not just limited to trade, but can also prove to be a game-changer for India's infrastructure, energy security and important projects in Gujarat.

Historic surge in India-UAE trade after CEPA

According to the joint statement, economic cooperation between India and the UAE has witnessed significant growth after the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022.

Bilateral trade reached a record-breaking $100 billion in the financial year 2024-25. 

This growth has established both countries as strong global trading partners.

Dholera SIR and GIFT City: A Golden Opportunity for Gujarat

Two ambitious projects of Gujarat – Dholera Special Investment Region (SIR) and GIFT City – were at the centre of discussion in this meeting.

Partnership with UAE for Dholera SIR

The leaders of both countries welcomed the potential partnership with the UAE for the development of the Dholera SIR. As per the proposed plan, here:

International Airport 

Pilot Training School 

MRO (Maintenance-Repair-Overhaul) Facility 

Greenfield Port 

Smart Urban Township

Strategic infrastructure projects like will be developed.

GIFT City to become a global financial hub

The two leaders expressed satisfaction over the opening of branches of ‘DP World’ and ‘First Abu Dhabi Bank (FAB)’ in GIFT City, Gandhinagar. 

This initiative will: 

Provide direct access to the Middle East and African markets for Indian companies 

Strengthen India’s position in international finance and logistics 

Big deal for energy security

An important agreement has also been reached between India and the UAE in the energy sector.

A 10-year LNG supply agreement has been signed between Hindustan Petroleum and ADNOC Gas.

Key details of the agreement:

0.5 million tonnes of LNG supply per year from 2028 

Long-term benefit to India's energy security 

Stability in industry and power generation

Conclusion

This historic agreement between India and UAE will not only boost trade, but will also give a new direction to India's infrastructure, energy security and global economic influence. This partnership, especially for Dholera SIR and GIFT City, will further strengthen Gujarat on the global map.