India and the UAE sign agreement on a trade corridor connecting continents

India, UAE sign pact on trans-continental trade corridor
The framework agreement between India and the UAE, announced during Prime Minister Narendra Modi's visit to the Gulf state, aims to foster regional connectivity. The India-Middle East Economic Corridor, extending from India to Europe, is a key part of the agreement. This comes amid regional instability, including the ongoing conflict in Gaza.
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During a visit by India’s Prime Minister Narendra Modi to the United Arab Emirates (UAE), a framework agreement was announced, although few details were made public. The agreement aims to build on previous understandings and cooperation and foster regional connectivity between India and the UAE. The agreement concerns the India-Middle East Economic Corridor, which was announced last September and aims to extend from India across the Arabian Sea to the UAE, Saudi Arabia, Jordan, Israel, and Europe.

Despite the ongoing war in Gaza, the UAE and India seem to be moving forward with their plans for the economic corridor, which could challenge China’s global trade infrastructure and road connectivity strategy. The UAE and India also signed a bilateral investment treaty and exchanged cooperation agreements covering electrical interconnection, trade, and digital infrastructure. This announcement comes as Saudi Arabia has halted its normalisation plans due to the current regional instability. The UAE’s establishment of diplomatic relations with Israel in 2020 under U.S.-backed initiative known as the Abraham Accords has also been an influencing factor in the region.

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