India UAE Relations
The friendship between India and the United Arab Emirates is based on cultural,social and economic ties dating back thousands of years. India-UAE ties were strengthened after the crowning of Sheikh Zayed bin Sultan Al Nahyan as Ruler of Abu Dhabi in 1966 and the creation of the UAE Confederation in 1971. These relations have expanded in recent years and exchanges have grown in a number of sectors, including renewable energy, defence, space and security cooperation, besides trade and investment in energy.
Importance of UAE for India
The United Arab Emirates (UAE) is making a significant contribution to India's energy security.
The Indian expatriate community has a population of 2.6 million in the UAE does.India receives about 52% of its total remittances from Gulf migrants. The United Arab Emirates is a member of the Gulf Cooperation Council (GCC).Close cooperation is necessary to maintain stable relations in the Gulf region and to counter radicalization.
The indirect importance of the UAE is 'to end Pakistan's dominance in the UAE. By working together, the two countries contribute greatly to regional stability.
India is a reliable security and It is in a good position to emerge as an economic partner.
Dakum Port
Under the military agreement signed during the Prime Minister's visit to Oman, India has got military access to the strategically important Dakum port of Oman located in the Arabian Sea.
With this agreement, India will be able to make military use of Dakum port. Indian Navy warships will be stationed at this port and these warships can also be repaired in the dry dock located here.
The strategically important port of Dakum is located on the shores of the Arabian Sea in Oman. From here the sea routes leading to the Arabian Sea and the Gulf of Aden can be monitored.
The port is also geographically close to the Chabahar port being developed by India in Iran, which will provide better security to the trade route from Chabahar port to Afghanistan and Central Asia.
Apart from this, China's military base in Djibouti and Pakistan's Gwadar port can also be monitored from this port.
After getting military access to this port, India's military presence in the Indian Ocean region will increase. The move can be seen as counterbalancing China's growing presence in the Indian Ocean region.
India is currently following an active maritime security policy in the Indian Ocean region. Under this policy, agreements have been signed by India for the construction of military infrastructure on Assumption Island of Seychelles and military use of Agalega Island in Mauritius.
An Exclusive Economic Zone has also been developed along with this port where about $1.8 billion has been invested by Indian companies. Therefore, this port can also play the role of a hub in the export of Indian products to Arab countries.
Zakum oil field
The Lower Zakum Oil Field is located 84 km north west of Abu Dhabi. This oil field was discovered in 1963. The oil field is managed by the Abu Dhabi National Company.
The total proven reserves of oil in this oil field are estimated to be 17.2 billion barrels. The deal marks the first time Indian oil and gas companies have acquired a stake in Abu Dhabi's hydrocarbon resources.
The global decline in oil prices in recent years has led oil-rich countries to sell stakes in their major oil and gas fields to foreign companies to reduce their dependence on petroleum resources and balance their budget deficits. Thus they want to diversify by reducing the percentage of petroleum resources in their economy.
Indian energy companies, backed by diplomatic efforts in oil-rich countries, are aggressively trying to gain a stake in these oil and gas fields.
