India signs first concessional agreement with UAE in oil sector

India on Saturday signed the first concessional agreement with the United Arab Emirates (UAE) in the oil sector.

"The single most important agreement that was signed and which reflects a change in our energy relationship with the UAE was the one signed between a consortium of the Indian oil companies and Abu Dhabi National Oil Company (ADNOC) for the acquisition of 10% participating interest in the offshore Lower Zakum Concession," said Indian Ambassador to the UAE Navdeep Singh Suri in a media briefing.

The Ambassador underscored that this is the first time ever that the Indian Consortium has received concession in the Gulf.

"It is the first concessional agreement which has been signed between ADNOC and India which will be for 40 years from 2018 to 2057," Ambassador Suri said.

The Ambassador also used the occasion to emphasis that the UAE's Etihad Railways is looking for a major expansion plan and that they are looking forward to India as their partner.

In a bid to consolidate the financial architecture, India and the UAE will sign two more agreements in upcoming days.

Ambassador Suri explained the currency agreement, according to which the businesses between the two countries will be executed directly in the Indian rupee and Emirati dirham (AED).

Furthermore, the Ambassador underscored another agreement wherein the Financial Intelligence Units of the two countries will function in cooperation to prevent money laundering.

In terms of education, Indian Institutes of Management (IIM) Ahemdabad will expand its campus overseas in the UAE and Manipal University has announced

Manipal Insitute announced to open its first medical college in Dubai.

Briefing the press about the migration to the UAE, the Ambassador stated that, "We want to integrate our e-migrate system with the UAE. People visit here on tourist visa and then take up a job. If they come by e-migrate we'll have their details. We're trying to integrate with their labor laws so that contract is acceptable to them too."

In total, India and the UAE have signed five MoUs.