$200 Billion vs $20 Billion: How India-UAE Trade Pact Dwarfs Pakistan-Saudi Deal

Last Updated:January 20, 2026, 09:14 IST

India and UAE aim to double trade to $200B by 2032, focusing on tech, infrastructure, defence, and MSMEs — leaving Pakistan-Saudi Arabia's $20B plans far behind

UAE President Sheikh Mohamed bin Zayed Al Nahyan’s Monday visit to India may have been brief but in those 90 minutes, the two countries reached agreements that significantly expand bilateral cooperation, unveiling plans to have a strategic defence partnership and sealing an LNG deal.

Prime Minister Narendra Modi and the UAE President set a $200 billion annual trade target by 2032 while laying out a broad agenda to shore up the ties. In contrast, Pakistan’s ongoing efforts to secure similar trade and investment commitments from Saudi Arabia highlight the differing scales and trajectories of regional economic partnerships.

Trade and Investment Targets

Pakistan-Saudi Arabia: The Shehbaz Sharif government has set a $20 billion trade and investment target with Saudi Arabia. Current trade stands at $5.7 billion, and the first phase of $5 billion investment has yet to materialise, reflecting a slower pace of implementation.

India-UAE: Trade between India and the UAE has already crossed $100 billion. Building on this foundation, Prime Minister Modi and President Sheikh Mohamed bin Zayed Al Nahyan have set an ambitious target of $200 billion by 2032, signaling both the scale of ambition and confidence in execution.

Strategic Agreements and Sectors

The India-UAE agreements cover a wide range of sectors and illustrate a structured approach to long-term growth:

Infrastructure and Investment: In Gujarat’s Dholera Special Investment Region, the UAE will develop an international airport, smart township, and port. These are direct investments, rather than credit or loan-based arrangements.Technology and Innovation: India’s IN-SPACe and the UAE Space Agency will jointly establish a satellite factory and launch complex. Agreements were also signed in nuclear energy and artificial intelligence, highlighting a focus on future-ready sectors.Defence Cooperation: The two countries are moving toward a strategic partnership in defense, including joint weapons development, shifting beyond the traditional buyer-seller dynamic.

Strategic Significance

The contrast between the two regional initiatives is notable:

Pakistan’s $20 billion target relies heavily on loans or credit agreements, reflecting a reactive and constrained approach.India and the UAE are building on an existing $100 billion trade foundation, leveraging direct investments, technological collaboration, and strategic alignment to ensure sustainable growth.

This structured approach reflects intent and capability: the sums Pakistan has pursued for months in Riyadh could be deployed in a single India-UAE project such as Dholera or a high-tech data center. The India-UAE strategy emphasises capacity-building, future-ready industries, and long-term bilateral integration.

President Sheikh Mohamed bin Zayed Al Nahyan captured the visit’s focus on X:

“Today I was pleased to meet with the Indian Prime Minister in New Delhi to discuss opportunities to further strengthen the deep-rooted and historical ties of cooperation between our countries. Committed to fostering sustainable development and economic growth, the UAE and India will continue to work together to advance progress in future-focused sectors and ensure mutual benefits for our countries and people."

Overall, the agreements highlight a clear strategic vision: leveraging existing economic strengths, integrating technology and industrial capabilities, and establishing a comprehensive, forward-looking partnership—positioning India-UAE cooperation as a benchmark in regional economic diplomacy.

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