Modi thanked the UAE leadership for this "landmark" decision.
While there are two temples in Dubai, one of Lord Shiva and another of Krishna, there is none in Abu Dhabi.
"A long wait for the Indian community ends. On the occasion of PM's visit, UAE Govt decides to allot land for building a temple in Abu Dhabi," tweeted external affairs ministry spokesperson Vikas Swarup.
"PM @narendramodi thanks UAE leadership for this landmark decision," he said.
