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A deep-dive research report on UAE, India expand partnership in defense, tech, trade - The Jerusalem Post, synthesized from multiple global sources.
In a significant consolidation of regional strategic architecture, Prime Minister Narendra Modi’s diplomatic itinerary in early 2026 has marked a definitive shift in the geopolitical landscape of West Asia. While the visit to Israel in February 2026 was framed as a historic return for the first Indian Prime Minister since 1992, concurrent high-level talks with United Arab Emirates (UAE) leadership in January 2026 underscored India’s central role in the region’s emerging economic and security corridors.
The primary outcome of these engagements is the formal upgrade of the India-Israel relationship to a "Special Strategic Partnership," accompanied by parallel expansions in defense, technology, and trade with the UAE. This period represents a geopolitical inversion where India, now positioned as a bridge between East and West, leverages its rising global stature to deepen ties with nations navigating complex diplomatic pressures. The agreements signed span critical emerging technologies, including artificial intelligence and quantum computing, alongside substantial defense procurement and energy cooperation. However, the strategic depth of these partnerships is being tested by regional security dynamics, specifically regarding Iran, adding a layer of complexity to India’s balancing act between its growing alliances in the Middle East and its traditional ties across West Asia.
The technical scope of the partnership upgrade extends far beyond traditional diplomatic handshakes, focusing on hard infrastructure and advanced technological integration. In the defense sector, the numbers tell a clear story of deepening reliance. According to data from the Stockholm International Peace Research Institute, between 2020 and 2024, one-third of Israel’s arms sales were directed toward India. Since the beginning of 2026, bilateral deals have reached an eye-popping $8.6 billion. Israeli systems currently in Indian service include air-defense platforms such as the Barak missile system, drones, radar systems, and advanced surveillance technologies.
Crucially, this relationship has evolved to accommodate India’s "Make in India" doctrine. Israeli defense firms are now operating joint ventures and production lines within India, facilitating technology transfer and local manufacturing. This shift aligns with the broader policy of "de-hyphenation" instituted by Modi in 2014, which separated India’s relationship with Israel from its relationship with the Palestinians, bringing ties into full public view rather than keeping them below the radar.
Technology featured prominently in the discussions between New Delhi and Jerusalem. The two leaders announced the launch of a Critical and Emerging Technologies Partnership covering areas such as artificial intelligence, quantum technologies, and critical minerals. Additionally, officials welcomed an agreement enabling the use of India’s Unified Payments Interface (UPI) in Israel and committed to cooperation in digital health.
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Simultaneously, the UAE-India partnership saw significant expansion during President Sheikh Mohamed bin Zayed Al Nahyan’s working visit to New Delhi in January 2026. The leaders signed a "Letter of Intent on a Strategic Defense Partnership" and an agreement between the UAE Space Agency and India’s National Space Promotion and Authorization Centre to launch a joint initiative for space industry development. Energy cooperation was also formalized through agreements between Adnoc Gas and Hindustan Petroleum Corporation Limited, alongside food safety accords.
The economic implications of these strategic upgrades are substantial, with trade negotiations advancing toward a mutually beneficial Free Trade Agreement. Economic engagement is emerging as a key driver of growth and innovation, supported by the Bilateral Investment Agreement concluded last year. Specific investment cooperation agreements were signed between the UAE Ministry of Investment and the Government of Gujarat regarding the development of the Dholera Special Investment Region.
In the agricultural sector, the partnership aims to improve farmer incomes and productivity through the scaling up of Centres of Excellence in India. The leaders agreed to establish Villages of Excellence aimed at taking Israeli agricultural technologies to rural India, with an emphasis on improving farmer incomes and productivity. An India Israel Innovation Centre for Agriculture is to be set up to support future-ready farming solutions.
Market sentiment reflects a complex interplay of opportunity and geopolitical risk. On one hand, India is positioning itself as a manufacturing powerhouse and a technological hub, serving as a counterweight to China. The "hexagon" of alliances proposed by Israeli Prime Minister Benjamin Netanyahu—comprising India, select Arab states, Greece, Cyprus, African partners, and additional Asian players—is designed to create an axis of countries facing the same challenges through the same lens.
However, sentiment is tempered by regional security realities. Analysis suggests that Modi’s visit to Jerusalem will haunt India in the context of recent Iranian attacks. Days after Modi returned to New Delhi, Israel, with backing from the United States, launched missile strikes against Iran. India has not condemned the unprovoked attack on Iran, which shares a significant bilateral relationship with India. This timing underscored the limits of personal diplomacy and symbolized bad optics for India, sharpening questions about how New Delhi balances its growing partnership with Israel against its longstanding ties and interests across West Asia.
Furthermore, diplomatic circles noted that Modi skipped the Zawiya al-Hindiya shrine in Jerusalem—a rare site where India’s diplomatic statecraft intersects with Muslim devotional history—instead spending time with actors of the Israeli television series Fauda. This choice was interpreted by some as prioritizing security over symbolic heritage.
Looking forward, the strategic convergence between New Delhi and Jerusalem is set to deepen through specific structural initiatives. Both sides reiterated that there is no place for terrorism in any form and committed to standing shoulder to shoulder against it. On regional issues, Modi stated that India would work with Israel and partners to advance the India Middle East Europe Economic Corridor (IMEC) and the I2U2 grouping involving India, Israel, the United States, and the UAE.
The focus on technology remains a central pillar. The launch of the Critical and Emerging Technologies Partnership signals a long-term commitment to innovation in AI and quantum technologies. In terms of workforce cooperation, the scope is being expanded from construction and caregiving sectors under the 2023 manpower mobility agreement to include commerce and services. An India Israel Academic Forum is to be created to link youth, researchers, and innovators.
For the UAE-India axis, the relationship remains part of the larger relationships in the region linked to Israel