India and the United Arab Emirates (UAE) have agreed to commence negotiations for establishing a Strategic Petroleum Reserve here in an effort to increase crude oil sourcing from that region.

The negotiations will be held between Abu Dhabi National Oil Company (ADNOC) and the Indian Strategic Petroleum Reserves Ltd (ISPRL).

This was agreed during the bilateral meeting between Prime Minister Narendra Modi and the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces Sheikh Mohammed bin Zayed Al Nahyan here.

“Recognising that energy is a central pillar of the economic relationship, the two leaders expressed satisfaction at their growing bilateral trade in the energy sector, noting that the UAE is one of the largest suppliers of crude oil to India,” said a joint statement by Ministry of External Affairs (MEA).

The UAE also vowed to invest the promised $75 billion in a gradual manner into the country’s infrastructure development, especially in railways, roads, ports, and shipping.

Both sides also welcomed the signing of a framework MoU, which will serve “to facilitate and expand the participation of Emirati investors in infrastructure projects in India,” the joint statement said.

UAE’s Minister of State for Foreign Affairs Anwar Gargash had earlier stated that in order for India to attract sovereign wealth funds, New Delhi has to create a conducive environment.

“We have said India has the most open environment for investments. But at the same time we do acknowledge that there is scope of improvement,” Vikas Swarup, spokesperson, MEA ,told reporters here on Friday.

India and the UAE also agreed to greater cooperation the fields of space technology, cyber security, renewable energy and IT-ITES, among others.

During the visit of the Crown Prince, who concluded the trip on Friday, both the governments signed a total of nine agreements, including an MoU on currency swap arrangement.

Also read: India, UAE civil nuclear deal talks remain inconclusive

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