The I2U2 grouping comprising India, Israel, the UAE, and the United States has emerged as an essential economic and strategic initiative since its establishment in 2022. I2U2 represents a new form of international collaboration focusing explicitly on economic and technological cooperation while consciously avoiding security entanglements. I2U2 was officially launched at a leaders’ summit in July 2022, following initial ministerial-level engagements dating back to October 2021. The Abraham Accords, which normalised relations between Israel and several Arab states beginning in 2020, served as the catalyst. These accords allowed unprecedented cooperation between Israel and the UAE, creating a conducive environment for wider regional economic integration. The future of the I2U2 depends on conflict in the Middle East and war in Gaza. It will be a while before Israel can focus and provide resources to this grouping. However, the UAE and India can work on projects jointly and have the capability to do so. Even if the Trump administration remains lukewarm to the initiative, the two countries will have enough bandwidth, talent, expertise, and finances to carry these projects forward. In any case, the project concentration has been in India and the UAE.
Differing attitudes among I2U2 members towards external powers like China and Iran introduce further complexity for the grouping. The U.S. and India share concerns regarding China’s expanding global influence, while Israel and the UAE maintain robust economic engagements with China…Meanwhile, Israel and the U.S. regard Tehran as a regional adversary, while India and the UAE pursue a more balanced, pragmatic approach towards Iran
Worth noting that each of the four members approached I2U2 with distinct strategic rationales. The United States sought to recalibrate its Middle Eastern presence from military-centric engagements to economic and diplomatic ones, amid growing fatigue with prolonged military involvements. India saw the grouping as an opportunity to extend its strategic outreach westward, complementing its traditional East Asian focus and fostering deeper economic relationships with pivotal partners like the UAE and Israel. Israel, historically isolated regionally, welcomed I2U2 as a platform to strengthen its financial and diplomatic ties with South Asia and the Gulf. For the UAE, participating in this grouping aligned well with its national vision of becoming a global economic and technological hub.
