Modi eyes $800 billion investment from UAE
By Agha Iqrar Haroon
Indian forceful Foreign Policy under the leadership Narendra Modi is reaching Middle East “aggressively” and leftover areas are now being filled. After covering “forgotten Central Asia” thoroughly, Indian Prime Minister Modi has landed in Dubai on his two-day official visit to United Arab Emirates (UAE). The last Indian Prime Minister who traveled to UAE was Indira Gandhi who visited UAE in 1981 when UAE was non-entity in gulf’s economy.
Modi’s visit will be followed by the tour of Indian President to Israel, Jordan and Palestine in October as part of new phase of Indian Foreign Policy.
According to available figures, Indian economy is closely linked with UAE and around 2.6 million Indians work in UAE and remit over $13 billion annually. Indians living in UAE form over 33% of the total population of the UAE while 45,000 Indian companies operate with a direct foreign investment over $3.1 billion in UAE.
Indian-UAE bilateral trade during year 2014-15 (July 2014 to July 2015) was over $60 billion. Meanwhile the direct foreign investment to India from the UAE is over $3.01 billion now. Now, India wishes special arrangements with UAE government to pitch India as “Joint investment destination”. The formula that India is trying to sell in UAE says that UAE and India can operate together for foreign investment as India has a huge manpower opportunities as well as consumer market while UAE has credibility as economically successful nation.
According to Indian newspapers, Modi is seeking bilateral cooperation in energy and trade to reach out investors in the UAE who have sovereign wealth fund of more than $800 billion. The philosophy behind this strategy is developing a system that can ensure joint ventures with UAE firms to route international firms to India that are already working in UAE while ensuring protection of UAE’s financial interests. There is no doubt that UAE is a global economic success story that has attracted people from all over the world. UAE has also emerged as an important logistics hub. UAE is also the sixth largest source of oil import to India.
According to Indian Foreign Office and Ministry of Finance, Abu Dhabi Investment Authority (ADIA) announced its plans of investing $2 billion in Indian infrastructure sector way back in 2013 but this announcement is yet to become a reality and this issue will also be on agenda during Modi visit.
Bilateral security treaties and agreements on extradition, mutual legal assistance in criminal and civil matters, combating trafficking in narcotics and information cooperation apart from the maritime interaction are also on agenda.
Indian newspapers believe that over 50,000 Indians livening in UAE will attend speech of Modi to members of Indian community at Dubai International Cricket Stadium on August 17. According to the oraganisers, more than 50,000 Indians have registered for the public reception. Organisers have made elaborate arrangements for the event, including an ambitious plan to air-condition the open air stadium as well as distribute free food and water to the audience.
Though Modi has no formal higher education and is known as radical conservative Hindu leader but he is leading a liberal and versatile foreign policy and earning a good repute as a liberal Statesman.
