India and UAE has signed five new agreements related to energy sector, railways, manpower and financial services.
What are the agreements signed?
A MoU between the Indian Consortium (OVL, BPRL & IOCL) and the Abu Dhabi National Oil Company (ADNOC) was signed for the acquisition of a 10% participating interest in the Abu Dhabi’s offshore.
To cooperate in the field of manpower, India and the UAE signed a MoU that aims to institutionalise the collaborative administration of contractual employment of Indian workers in the Gulf country.
A MoU for technical cooperation in railways was also signed between the two sides, it aims at cooperation in infrastructure sector especially railways.
To deepen bilateral cooperation in the field of finance, a MoU between Bombay Stock Exchange and Abu Dhabi Securities Exchange was also signed.
A MoU between the Government of Jammu and Kashmir and DP World was also signed to establish multi-modal logistics park and hub in Jammu comprising warehouses and specialised storage solutions.
What are the prospects of these agreements?
The concession on oil will be for 40 years from 2018 to 2057, with 60% of the participating interest will be retained by ADNOC and remaining 30% will be awarded to other international oil companies.
This is the first Indian Investment in upstream oil sector of UAE, transforming the traditional buyer-seller relationship to a long-term investor relationship.
Labour related MoUs will end the existing malpractices, combat trafficking and organise collaborative programs for education and awareness of contractual workers.
Railway related MoU will facilitate development of joint projects, knowledge sharing, joint research, and technology transfer and envisages formation of a Joint Working Group.
The financial MoU will enhance cooperation between both the countries in financial services industry and facilitate investment in financial markets by investors from both the countries.
