UAE President arrives today, to hold bilateral talks with PM, Pg11

Key Highlights:

• UAE President Sheikh Mohamed bin Zayed is visiting New Delhi on January 20, 2026, to strengthen bilateral ties with India.
• Discussions with Prime Minister Narendra Modi will cover regional and global issues.
• The visit occurs amidst UAE's tensions with Saudi Arabia in Yemen.
• India-UAE trade exceeded $100 billion in FY2024-25, making UAE India's third-largest trading partner.
• The visit aims to explore strategic partnership opportunities and chart new frontiers for the India-UAE Comprehensive Strategic Partnership.

Detailed Insights:

• The UAE President's visit builds upon recent high-level exchanges, including visits by the Crown Prince of Abu Dhabi in September 2024 and the Deputy PM in April 2025.
• India and the UAE maintain strong political, cultural, and economic ties, enhanced by the Comprehensive Economic Partnership Agreement (CEPA), the Local Currency Settlement (LCS) system, and a Bilateral Investment Treaty.
• Tensions between the UAE and Saudi Arabia escalated in December 2025 due to conflicting interests in Yemen, with clashes between UAE-backed and Saudi-backed forces.
• India maintains close ties with both Riyadh and Abu Dhabi, as the Gulf neighbors compete for influence across West Asia and Africa.
• Key Indian exports to the UAE include jewellery, refined petroleum, electronics, and agricultural products, while imports include crude oil, gold, and diamonds.
• The UAE supports the second phase of the comprehensive Gaza peace plan and the US President's announcement of the 'Board of Peace'.

Key Concepts Involved:

• Comprehensive Economic Partnership Agreement (CEPA): A trade agreement between two countries to reduce or eliminate tariffs and promote trade.
• Local Currency Settlement (LCS): A mechanism to settle trade transactions in local currencies, reducing reliance on dominant currencies like the US dollar.
• Bilateral Investment Treaty: An agreement between two countries that establishes terms and conditions for private investment by nationals and companies of one state in the territory of another.