UAE’s last month OPEC exit is expected to raise oil output and benefit importers
Sheikh Mohamed bin Zayed Al Nahyan, President of UAE met with Indian Prime Minister Narendra Modi. PHOTO: UAE President X
India and the United Arab Emirates agreed on a framework for a strategic defence partnership on Friday during Prime Minister Narendra Modi’s visit to the Gulf nation, as both countries seek deeper ties amid the Iran war, India’s foreign ministry said.
أجريتُ مباحثاتٍ ممتازة مع أخي، صاحب السمو الشيخ محمد بن زايد آل نهيان؛ حيث جددتُ التأكيد على إدانتنا للهجمات التي استهدفت دولة الإمارات العربية المتحدة بأشد العبارات. كما أعربتُ عن تقديري لما يتحلى به أخي من قيادةٍ وشجاعةٍ وحكمة، وهي خصالٌ تجلّت بوضوحٍ طوال هذه الفترة. وعبرتُ… pic.twitter.com/gLYFz69Leh
— Narendra Modi (@narendramodi) May 15, 2026
India and the UAE also signed agreements on strategic petroleum reserves and the supply of liquefied petroleum gas (LPG), the ministry said in a statement.
Under the strategic defence partnership, “the two sides have agreed on deepening defence industrial collaboration and cooperation on innovation and advanced technology, training, exercises, maritime security, cyber defence, secure communications and information exchange,” the statement said.
Ahead of Modi’s visit, Indian sources told Reuters the prime minister was expected to discuss long-term energy supply deals and seek support for expanding India’s strategic oil reserves.
मैंने प्रधानमंत्री नरेन्द्र मोदी का अबू धाबी में स्वागत किया, जहाँ हमारी वार्ता हमारे देशों और लोगों के बीच गहरे संबंधों को और सुदृढ़ बनाने पर केंद्रित रही। संयुक्त अरब अमीरात और भारत के बीच एक दीर्घकालिक रणनीतिक एवं आर्थिक साझेदारी है, और आज की हमारी चर्चाओं में ऊर्जा,… pic.twitter.com/aB8vIGZUIi
— محمد بن زايد (@MohamedBinZayed) May 15, 2026
The UAE’s decision last month to leave OPEC is expected to boost its oil output and benefit importers such as India.
The US-Israeli war on Iran, now in its third month, has disrupted global energy markets following the closure of the Strait of Hormuz, through which around 20% of global oil flows. Iranian strikes also affected transportation and business across the Gulf, including in the UAE, before a fragile ceasefire was reached last month.
In January, New Delhi and Abu Dhabi signed a $3 billion LNG supply agreement, along with a letter of intent to work toward a strategic defence partnership.
Eyeing closer Saudi-Pakistan ties
The developments follow a mutual defence agreement signed last year between Pakistan and Saudi Arabia.
Pakistan has since emerged as a key mediator between the United States and Iran and has also strengthened Saudi defences after the kingdom faced repeated Iranian missile and drone attacks.
Last month, Riyadh announced an additional $3 billion support package for Pakistan to help address financing pressures linked to an upcoming debt repayment to the UAE.
India’s foreign ministry also announced UAE investments worth $5 billion, citing previous deals including Emirates NBD’s acquisition of a 60% stake in RBL Bank for $3 billion and Abu Dhabi-based IHC’s $1 billion investment in Sammaan.
