India strikes oil deal as Asian powers court the UAE

India strikes oil deal as Asian powers court the UAE

16/02/18

Luke Foddy, Communications Manager

India is set to become a ‘regional oil storage and trading hub,’ following Prime Minister Narendra Modi’s visit to the United Arab Emirates earlier this week.

The major visit saw the conclusion of a deal between the Abu Dhabi National Oil Company and the state-run Indian Strategic Petroleum Storage Ltd, which will see 5,860,000 million barrels of crude oil stored in Mangalore, a major Indian port on the Arabian Sea, the Times of India reports.

‘This will be the first investment from the UAE into an Indian oil project, marking the turning point in New Delhi’s buyer-seller relationship with West Asian oil producers,’ the newspaper said.

The deal was one of 14 that were signed during Modi’s visit, with Forbes reporting that ‘growing investment into India from the UAE is boosting bilateral ties.’

Modi’s trip marks the fourth high-level visit between the two countries in the last three years. But it isn’t just India courting the UAE.

Last month, China’s Foreign Minister Wang Yi hosted the UAE Minister of State, Sultan Ahmed Al Jaber, in Beijing, where the Belt and Road Initiative was on the agenda. An official statement read: ‘China has always regarded the UAE as one of the priority directions for its diplomacy in the Middle East.’

It added: ‘The UAE is willing to take more active measures to participate in the “Belt and Road” construction.’

The Middle East’s increasing importance to Asia and the wider global economy is a key theme which will be explored at Asia House’s major conference in Dubai this April.

Held in partnership with DMCC, The New Global Trade Order will take place on 22 April. Find out more.

 

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