India–Arab League: Bridging Cultures, Creating Opportunities
Source: The Hindu
For Prelims
What:
The 2nd India–Arab Foreign Ministers’ Meeting (Jan 30–31, 2026, New Delhi) marks a major diplomatic engagement between India and the League of Arab States (LAS) to strengthen cooperation in trade, energy, security, connectivity, fintech, and strategic partnerships amid rising geopolitical instability in West Asia.
Why:
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Geopolitical Flux: Conflicts in Gaza, Syria, Iran tensions, and emerging rifts between Saudi Arabia and UAE are reshaping regional power dynamics.
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Economic Stakes: Bilateral trade exceeds $240 billion, with major investments from UAE, Saudi Arabia, and Qatar into India’s infrastructure sector.
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Strategic Security: Energy security, maritime safety (SAGAR), and defence cooperation are critical for India’s external stability.
Who:
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Ministry of External Affairs (India)
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League of Arab States (LAS) – 22 Member States
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Arab-India Cooperation Forum (AICF)
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Strategic Partners: UAE, Saudi Arabia, Egypt, Oman, Qatar
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Key Institutions: RBI (Fintech & Currency Settlement), Energy PSUs (ONGC, IOC), ADNOC, QatarEnergy
For Mains
GS-II – International Relations / GS-III – Economy & Energy Security / GS-IV – Ethics in Diplomacy
Highlights of the Article
Strategic Convergence Beyond Trade
Energy as the Backbone of Relations
Connectivity as a Growth Multiplier
Fintech & Digital Diplomacy
Security and Defence Cooperation
UPSC EXAM NOTES – ANALYSIS
1.India and the Arab League
- The League of Arab States (LAS) was established in Cairo on March 22, 1945, beginning with seven founding members. Over the decades, it has expanded to include 22 countries across North Africa and West Asia.
- While India’s historical ties with Arab nations span several centuries, formal engagement with the LAS took shape in March 2002 through the signing of a Memorandum of Understanding (MoU), which created a structured framework for regular dialogue.
- This agreement seeks to strengthen long-standing bonds of friendship and cooperation and mandates annual interactions between India’s External Affairs Minister and the Arab League’s Secretary General.
- In December 2008, following a visit by then Secretary General Amr Moussa, the Arab–India Cooperation Forum (AICF) was launched to deepen institutional collaboration.
- Two years later, in December 2010, India appointed its Ambassador to Egypt as the country’s Permanent Representative to the Arab League. The first AICF meeting took place in Manama, Bahrain, in January 2016.
- Complementing these efforts is the India–LAS Partnership and Investment Summit, a biennial platform focused on economic cooperation.
- During the ongoing foreign ministers’ meeting, a new body—the India and Arab Countries Chambers of Commerce, Industry and Agriculture—is set to be formally introduced
2. Key Pillars of Engagement
- The relationship between India and the League of Arab States (LAS) now extends well beyond commerce and capital flows. Over the last decade, strategic cooperation and security collaboration have become central to their interaction.
- India’s first formal strategic partnership in the region was concluded with Oman in 2008, followed by similar accords with the UAE in 2015, Saudi Arabia in 2019, Egypt in 2023, and Qatar in 2025, significantly widening the scope and depth of regional alignment.
- India has consistently supported Arab countries across major multilateral platforms such as BRICS and the Shanghai Cooperation Organisation (SCO).
- There is also a notable overlap in long-term national development visions, including Saudi Vision 2030, UAE Centennial 2071, Kuwait Vision 2035, Oman Vision 2040, and India’s own Viksit Bharat 2047. Reflecting this strategic convergence, India has been identified as one of the eight key partners under Saudi Arabia’s Vision 2030 framework.
- Trade and investment remain the foundation of bilateral ties and have demonstrated resilience even during disruptions such as the COVID-19 pandemic.
- A large share of India’s overseas trade transits through the Suez Canal, the Red Sea, and the Gulf of Aden, underscoring the region’s logistical importance.
- Two-way trade between India and LAS members now exceeds $240 billion. Comprehensive Economic Partnership Agreements have been signed with the UAE and Oman, and commerce with the UAE alone has surpassed $115 billion, with a revised target of $200 billion by 2030.
- Substantial investment pledges—$75 billion from the UAE, $100 billion from Saudi Arabia, and $10 billion from Qatar—are largely directed toward India’s expanding infrastructure sector.
- Overall foreign direct investment from the region has crossed $2.5 billion. As economic ties intensify, improving connectivity has become essential, making the India–Middle East–Europe Economic Corridor (IMEC)—unveiled at the G20 Summit in New Delhi in September 2023—a key focus for future cooperation.
- Advances in digital public infrastructure have opened new avenues for collaboration, with financial technology emerging as a shared priority.
- The RuPay card was introduced in the UAE in August 2019, and from July 2023, the Indian rupee has been accepted at Dubai airports.
- A rupee–dirham settlement mechanism has also been put into operation between India and the UAE. India’s Unified Payments Interface (UPI) is now functional in Bahrain, Saudi Arabia, Qatar, and the UAE, with further expansion across LAS countries expected.
- Energy cooperation forms a cornerstone of the partnership. The region supplies nearly 60% of India’s crude oil, around 70% of its natural gas, and over half of its fertilizer requirements. Iraq, Saudi Arabia, and the UAE rank as the leading sources of crude oil.
- The UAE has also partnered with India to develop strategic petroleum storage, backed by an initial investment of $400 million.
- A long-term $78 billion LNG agreement with Qatar, signed in February 2024, ensures the supply of 7.5 million tonnes annually for the next two decades, strengthening India’s long-term energy security.
- Additionally, in July 2023, ADNOC and Indian Oil concluded a 14-year contract for the delivery of 1.2 million metric tonnes of LNG per year.
- Given the region’s exposure to conflict and terrorism, defence and security cooperation has gained prominence.
- India has concluded defence partnership agreements with several LAS members, including Oman, the UAE, Saudi Arabia, Egypt, and Qatar.
- Maritime initiatives such as Security and Growth for All in the Region (SAGAR) aim to enhance collaboration in the Indian Ocean Region, particularly in countering piracy and safeguarding sea lanes.
- The strategic access arrangement at Oman’s Duqm port enhances the Indian Navy’s operational reach while enabling closer monitoring of regional naval activities, including those of China.
- Regional flashpoints, notably Iran-related tensions and the future of the Gaza peace process, are shared security concerns and are expected to feature prominently in diplomatic discussions.
- Most LAS members have expressed firm support for India’s campaign against cross-border terrorism, condemning attacks such as those in Uri, Pathankot, Pulwama, and Pahalgam.
- At the same time, opportunities for co-production of defence systems and the export of platforms like the Tejas fighter aircraft, BrahMos and Aakash missile systems, and artillery equipment are gaining traction.
- Emerging domains such as cybersecurity, space cooperation, and drone technology are also poised to become future areas of collaboration
3. Way Forward
As India’s influence expands across the economic, political, and strategic domains, the Arab League region has become an essential component of its global outlook. For member states of the LAS, India represents a dependable and credible partner. Though the two regions are geographically divided by the Arabian Sea, they are connected through shared history, mutual confidence, and an evolving sense of partnership. The gathering of Arab foreign ministers in New Delhi presents a timely platform to deepen cooperation and explore new areas of collaboration
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Mains Practice Questions
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