India and the UAE share a multifaceted relationship that has evolved significantly over the past few decades. This relationship encompasses economic, political, and cultural dimensions and is underpinned by historical ties and a shared vision for regional stability and prosperity. As two of the fastest-growing economies in their respective regions, India and the UAE have increasingly found common ground in various sectors, including trade, investment, and security.
The UAE’s strategic location has also made it a significant hub for the Indian diaspora, with approximately 3.5 million Indians residing in the UAE, contributing to its economy and cultural landscape. India shares close geographical proximity with the UAE; with important cities in India, including the capital New Delhi, requiring only 3-4 hours of flying time, similar to what it takes to travel from one end of India to the other.
Reasons for past neglect
The close and substantive relations that India currently enjoys with the UAE are the result of a remarkable turnaround from neglect and underachievement. Formal diplomatic ties were established between India and the UAE in 1972. However, for four decades and more, there were only limited high-level contacts. India viewed the UAE with suspicion, perceiving it as a close ally of Pakistan and the Taliban. The UAE was one of three countries, including Pakistan and Saudi Arabia, which recognised the first Taliban Government in Afghanistan (1996-2001). Dubai was also seen as a principal source of gold smuggling into India in the 1980s and a haven for gangsters from India like Dawood Ibrahim, who is believed to have fled there from Mumbai after the 1993 Mumbai terrorist bombings. Sharjah was similarly known for match fixing and illegal betting, and participation in cricket there by the Indian team was banned in 2001. The UAE, and Dubai in particular, reinvented themselves as an extraordinary success story through growth supported by oil revenues, with the super-efficient Jebel Ali port built in 1979, the Jebel Ali Free Zone and the Emirates Airline in 1985 and a tourism / real estate boom since the 1990’s. After 9/11, the UAE government also started cracking down on suspected terrorist elements and stepping up international cooperation on such matters. This resulted in India’s economic presence and the number of its citizens living and working in the UAE steadily growing, but officially, India continued to be slow to respond to these changes and rebuild relations.
