India and UAE Explore Critical Minerals and Energy Links on Sidelines of BRICS Summit

Key facts

The bilateral encounter between Prime Minister Modi and Crown Prince Sheikh Khaled took place on the sidelines of the BRICS summit on September 12, 2026, providing a high-profile forum to review ongoing joint initiatives and open new channels of bilateral cooperation. According to reporting by SECTIONS, the primary focus of the discussions was the strategic expansion of shared energy infrastructure. The two leaders reviewed ongoing hydrocarbon partnerships while examining next-generation projects, including renewable energy cross-border grid interconnections, hydrogen production, and energy storage systems.

In addition to traditional and clean energy frameworks, the dialogue turned to critical minerals—a priority sector for both economies as they seek to build resilient supply chains for electric vehicle manufacturing, defense electronics, and semiconductor supply loops. Modi and Sheikh Khaled explored collaborative mechanisms for joint investment, exploration, and refining of essential minerals such as lithium, cobalt, and rare earth elements, aiming to reduce dependence on single-source global suppliers.

The leaders also reviewed defense and security collaboration, emphasizing operational coordination, defense technology co-development, and maritime security across the Arabian Sea and northern Indian Ocean. Strategic transport connectivity was a fourth major pillar of the conversation. The leaders addressed practical measures to advance the India-Middle East-Europe Economic Corridor (IMEC), examining infrastructure alignments, port operational integration, and digital trade corridors designed to facilitate low-friction commerce between South Asia, the Gulf, and Europe.

Why it matters

The convergence between India and the UAE carries significant structural implications for international trade, energy security, and supply chain diversification. For India, securing reliable access to strategic energy infrastructure and essential minerals is vital to sustaining its domestic industrial growth, supporting its fast-expanding manufacturing base, and reaching its long-term decarbonization targets. Energy partnerships with Abu Dhabi—which holds vast oil and natural gas reserves alongside substantial sovereign wealth—provide India with capital and fuel security while protecting its economy against global market disruptions.

For the UAE, deepening ties with India aligns with its economic diversification initiative, aimed at reducing long-term national dependency on crude oil exports. By co-investing in critical mineral processing, green technology, and advanced logistics hubs, the UAE positions itself as a central clearinghouse and manufacturing node for South-East Asian and Middle Eastern industrial value chains.

The focus on the India-Middle East-Europe Economic Corridor (IMEC) reinforces the strategic importance of Middle Eastern logistics routes as counterweights to rival global infrastructure networks. If operationalized effectively, IMEC offers a significantly shorter, more cost-effective maritime and rail transport path between Indian ports and European markets via the Gulf. Furthermore, defense cooperation between India and the UAE strengthens maritime domain awareness across critical sea lines of communication, particularly near the Bab-el-Mandeb and Strait of Hormuz, where global commercial shipping remains vulnerable to regional instability and asymmetric maritime threats.

The diplomatic and economic relationship between New Delhi and Abu Dhabi has undergone a structural transformation over the past decade, evolving from a traditional buyer-seller trade relationship into a comprehensive strategic partnership. A foundational milestone occurred in February 2022, when India and the UAE signed the Comprehensive Economic Partnership Agreement (CEPA). The landmark trade deal eliminated or reduced tariffs on over 80 percent of product categories, driving bilateral non-oil trade toward a targeted threshold of $100 billion.

Energy cooperation has historically formed the backbone of bilateral ties, but recent years have seen a transition toward strategic storage and long-term security contracts. Abu Dhabi National Oil Company (ADNOC) became the first foreign energy company to store crude oil in India’s Strategic Petroleum Reserve (SPR) underground facilities at Mangaluru and Padur, granting India emergency fuel access while allowing ADNOC to commercialize oil reserves locally. In parallel, long-term liquefied natural gas (LNG) purchase contracts signed between Indian state-owned utilities and UAE producers have anchored New Delhi’s transition toward a natural gas-assisted energy mix.

The strategic alignment expanded further in September 2023 at the G20 Summit in New Delhi, where India, the UAE, Saudi Arabia, the European Union, and the United States unveiled the IMEC framework. Designed to connect India to the Gulf via maritime routes, across the Arabian Peninsula by rail, and onward to Europe via Mediterranean ports, the corridor is intended to accelerate trade velocity and reduce shipping times.

The multilateral dimension of the relationship expanded significantly in January 2024, when the UAE formally became a full member of the BRICS bloc. The expansion allowed Abu Dhabi and New Delhi to coordinate economic policies and infrastructure funding across both bilateral and multilateral frameworks, including the BRICS New Development Bank and cross-border payment integration initiatives.

Reaction

Official communiqués issued following the meeting emphasized the mutual commitment of both governments to execute signed agreements without delay. Diplomatic channels in New Delhi highlighted that high-level engagements with UAE leadership serve as a core component of India's neighborhood-first and extended-neighborhood policy, reflecting Abu Dhabi's status as a top-tier trade partner and host to a diaspora of over 3.5 million Indian nationals.

Industry analysts and trade associations in both regions responded favorably to the renewed focus on critical minerals and energy grid integration. Market experts noted that joint ventures in mineral processing could unlock substantial private sector investments in battery manufacturing and clean technology across Western India and UAE industrial zones. Strategic defense analysts noted that discussions on maritime security indicate an intent to establish more structured naval coordination, including joint patrols and intelligence sharing across the Western Indian Ocean.

What we don't know yet

Despite the positive diplomatic signaling, several key operational details remain unconfirmed in available reports. The specific financial allocations and corporate structures for joint critical mineral exploration projects have not been publicly detailed. It remains unclear whether investment will be channeled primarily through Indian public sector enterprises like Khanij Bidesh India Limited (KABIL) alongside Emirati sovereign wealth funds such as Mubadala or ADQ, or if private consortiums will lead project execution.

Additionally, concrete timelines for overcoming logistical and geopolitical hurdles facing the IMEC infrastructure remain undisclosed. The precise route development, standard gauge railway harmonization across participating Middle Eastern states, and port capacity upgrades require detailed intergovernmental agreements that have yet to be fully ratified. Finally, specific terms regarding potential expansion of UAE crude storage in India's Phase II Strategic Petroleum Reserves remain subject to technical and commercial negotiations.

What to watch

In the coming months, several key milestones will demonstrate the practical progress of these discussions. Observers should track upcoming ministerial-level meetings of the India-UAE Joint Commission, where technical subcommittees are expected to convert framework discussions on critical minerals into binding commercial contracts.

Attention will also focus on technical working group sessions for the India-Middle East-Europe Economic Corridor, where participating nations are expected to finalize operational standards for customs clearance, digital transit tracking, and port integration. Furthermore, announcements at major regional energy and mining summits, including the Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC), may disclose initial joint ventures between Emirati energy firms and Indian industrial conglomerates in renewable hydrogen and mineral processing facilities.

This report is based on reporting published by SECTIONS.