The United Arab Emirates (UAE) will make initial investments of $2 billion in infrastructure projects in India.
This was agreed at the first meeting of the India-UAE task force on investments held at Abu Dhabi today.
The UAE has also agreed to support and work for the establishment of strategic oil reserves in India, Commerce and Industry Minister Anand Sharma said after the meeting.
The UAE and India have also agreed in principle to put in place a bilateral investment promotion and protection agreement and expedite its conclusion, Sharma said.
Hamed Bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince Court, co-chaired the first meeting of the task force today.
Both sides also agreed to set up a committee within the task force to address outstanding issues, Sharma said.
He said there were concerns about past investments that had run into difficulties.
UAE companies that are facing issues in India as regards their investments include Etisalat, DP World, Emaar and TAQA.
“I have assured them that within the parameters of our laws, India will protect every investment made by UAE companies. All pending issues will be dealt with fairly and correctly,” Sharma said.
Both sides today agreed to set up five committees within the task force to look into issues of infrastructure and energy; manufacturing and technology; investment in trade, ICT and civil aviation.
On the possibility of a Jet Airways-Etihaad deal, Sharma declined to comment, but noted that both airlines are engaged in talks.
Both India and UAE have also agreed to get their public and private sectors to collaborate to take up third country projects in the oil and gas and infrastructure sectors.