Trilateral critical mineral deals, wider air pact key to India-UAE ties ahead, says UAE Minister

Ahmedabad: India and the UAE could look to deepen their strategic partnership beyond bilateral trade by jointly investing in third countries, particularly in critical minerals, as global supply chains are reshaped by rising geopolitical risks, UAE minister of economy and tourism Abdulla Bin Touq Al Marri said.

He also pressed for enhancing seat entitlements under the India-UAE air services pact, with demand far exceeding available capacity, arguing that the revision was critical to supporting the next phase of trade, tourism and investment.

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“The next phase of partnership could involve a trilateral approach, where India and the UAE invest together in a third country. There are many such opportunities in critical minerals... That’s where I would like the partnership to go,” the UAE minister told ET.

Securing Supply Chains

Al Marri was speaking on the sidelines of an event organised on Thursday by Investopia Global, a UAE-based investment platform, in partnership with the Confederation of Indian Industry.

He said the partnership could begin with the sourcing and processing of critical minerals such as nickel, cobalt, copper and lithium, which are essential for renewable energy, batteries, semiconductors and data centres. “Processing these minerals is extremely important, and so is securing their sourcing.

This is where the UAE could participate through investments, ensuring reliable supply chains for the future of energy, future industries and future industries. For instance, lithium is essential for batteries, copper is critical for data centres and cobalt and nickel play a major role in semiconductors,” he said.

With global supply chains being redrawn amid geopolitical risks, the minister said India and the UAE should work together to redesign supply routes and explore new opportunities and investments.

He added that the next phase is no longer just about trade growth but also joint investments, co-investment platforms, industrial partnerships and financial connectivity. Making a fresh case for revising the India-UAE bilateral air services agreement, Al Marri said the seat entitlement under the existing pact has been fully utilised and expanding capacity should be viewed as an economic imperative rather than merely an aviation issue.

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The current limits are fixed at 66,000 weekly seats for flights to/ from Dubai and 50,000 for Abu Dhabi. “The capacity under the current agreement has reached saturation…it’s important to prioritise the issue and look at it from a broader perspective. Aviation policy must be linked to tourism and the economy.

It should also be viewed through the lens of job creation,” he said. Constrained seat capacity has contributed to higher airfares, with consumers bearing the burden, Al Marri said. Citing an Observer Research Foundation study, he said a 1% increase in seat capacity from India to the UAE would reduce airfares by about 0.2%. “I think it’s important to look at this from the consumer’s perspective as well. Today, the UAE is home to more than 4 million Indians, and that community plays a very important role.

Several second- and third-tier cities and states in India remain underserved. We should look at connecting them better because greater connectivity brings more people together,” he said. He added that aviation had helped India and the UAE reach the $100 billion bilateral trade target, it will also need to play an equally important role in helping achieve the next milestone of $200 billion.

Al Marri has held talks with commerce minister Piyush Goyal and civil aviation minister Ram Mohan Naidu, besides Andhra Pradesh chief minister N Chandrababu Naidu and Gujarat chief minister Bhupendra Patel.