India, UAE seal 11.5 billion dollar Odisha aluminium project deal

A key bilateral meeting between India and the United Arab Emirates was held during the 18th BRICS Summit in New Delhi. Prime Minister Narendra Modi held detailed talks with Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan on cooperation in several new and strategic areas. Sheikh Khaled represented the UAE at the summit as President Mohamed bin Zayed was on a visit to Germany.

The meeting comes at a time of rising tension between the United States and Iran and geopolitical uncertainty in West Asia. Amid the turmoil in the Middle East, PM Modi said the India-UAE relationship stands as a strong example of stability, prosperity and peace in the region. Over the past few years, ties between the two countries have grown into a new strategic partnership, and they are now setting even bigger economic goals.

Briefing on social media after the meeting, PM Modi said the two countries had decided to advance their partnership in modern sectors such as defence, artificial intelligence, space technology, critical minerals, energy, food security and connectivity. There was also detailed discussion on strategic energy infrastructure and new connectivity possibilities under the India Middle East Europe Economic Corridor, or IMEC. The corridor is expected to give a new direction to trade and logistics networks between the two countries.

The biggest and most significant outcome of the meeting was the announcement that the UAE's International Holding Company, or IHC, will invest 11.5 billion dollars, about 96,000 crore rupees, in India's Odisha state. An agreement has been signed between IHC group company International Resources Holding and India's Adani Enterprises Limited, or AEL, for this integrated greenfield aluminium project. The joint venture will have a 50-50 stake split between IHC and the Adani Group. The project will be the largest direct foreign investment in India's aluminium sector so far, and could make Odisha a major global hub for aluminium production.

According to an official statement from the Ministry of External Affairs, the two leaders gave particular attention to the role of the UAE's new sovereign investment fund, Al Emaad. The fund could make significant investments in India's infrastructure, energy needs and technological development. Amid the war-like situation in West Asia, the Indian side sought assurance from the UAE leadership on the safety and welfare of the more than four million Indian citizens living there. The two countries also agreed that the uninterrupted supply of energy to India would continue.

Earlier in January, UAE President Sheikh Mohamed bin Zayed had visited India, following which PM Modi visited the UAE in May. These repeated high-level visits have made ties between the two countries stronger and more trusted. India also praised the UAE's active role during India's BRICS presidency.