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Other than what David has mentioned, there is also another reason which is responsible for increased efforts at strengthening bilateral relations between UAE and India.

That reason is to annoy India's Arch-Nemesis, Pakistan.

Why, you ask?

Because Pakistani Parliament overwhelmingly voted in refusal of Saudi request to join the Saudi-led Arab alliance fighting the Iranian backed rebels in Yemen.

This decision, coupled with lack of active participation by another Sunni Non-Arab power Turkey in the alliance against Shias, caused huge outrage in Gulf countries who saw it as Pakistanis and Turks abandoning them in front of Iranian advances as Gulf nations have long relied on the military muscle of these two Sunni majority countries.

While Saudis themselves did not issue any hard statement or overtly hostile reaction to the Turks and the Pakistanis, UAE did so in most clear terms.

UAE’s Minister of State for Foreign Affairs Dr Anwar Mohammed Gargash said:

The vague and contradictory stands of Pakistan and Turkey are an absolute proof that Arab security — from Libya to Yemen — is the responsibility of none but Arab countries. Tehran seems to be more important to Islamabad and Ankara than the Gulf countries.

He also threatened that Pakistan will pay heavy price for this stance.

This threat was followed by a two-day visit to UAE by Indian Prime Minister, Narendara Modi. During this visit, Indian PM and UAE's leaders reached an agreement and established an infrastructure investment fund, with the aim of reaching the target of $75 billion, to support investments in the rapid expansion of next-generation infrastructure in India, especially railways, ports, roads, airports, industrial corridors and parks. This investment of 75 billion is widely seen as UAE's effort to woo new Geopolitical allies against Iran and Indian attempt to counter the 46 Billion USD planned Chinese investment in Pakistan.

In Conclusion:

  1. UAE is finding new partners in region for wider political aims for containing Iran.
  2. India is seeking alternatives for foreign investment as Chinese CPEC investment in Pakistan is seen as a major threat by Indian policy makers. They are also hoping to find new partners to contain Pakistan after their bid to fail the CPEC project in Gwadar by building rival port in Iran failed.
  3. Religion does not play as big a role in politics as you might imagine. Iraq is an Arab Muslim state, it has always supported India in Indo-Pakistan rivalry. Meanwhile, Sri-Lanka and Nepal, both Non-Muslims, are seen as good friends by Pakistanis.

So you can say UAE's antics are kind of like acts of one's ex who isn't really over you and keeps flaunting how good things are going with their new partner to make you jealous or feel bad for yourself .

On a lighter note, To put it in terms of a famous meme :D :

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