Warehousing & logistics sector resilient amid investment drought: Vestian

Vestian stated that the sector received investments worth $646 million in 2023, accounting for 15 per cent of the total institutional investment received in the real estate sector

Foreign Secretary Vinay S Kwatra on Wednesday emphasised on ensuring that economic cooperation stays its course despite the ongoing conflict in Gaza and disturbances in the Red Sea.

He was responding to a question on whether Israel's latest conflict would impact the India, Israel, the US and the United Arab Emirates (I2U2), and the proposed India Middle East Economic Corridor (IMEC).

Addressing a press conference on the second day of Prime Minister Narendra Modi's visit to the UAE, Kwatra said the conflict in Gaza and the situation in the Red Sea featured in the discussions with President Mohamed bin Zayed al Nahyan on Tuesday.

"Whether it is I2U2 projects or the IMEC, the signing of which is a clear testimony and evidence that while the ongoing disturbance in the region with regards to conflicts in Gaza and situation in the Red Sea is indeed a matter of concern, both countries and the leaders continue to monitor, supervise and exchange notes on them," Kwatra elaborated. “It is equally important to ensure that economic cooperation continues to stay its course and maintains its momentum.”

After tightening their diplomatic and economic ties over a few years, the I2U2 nations held their first virtual leader's summit in July 2022. The joint statement issued after the meeting of PM Modi, US President Joe Biden, Israeli Prime Minister Yair Lapid, and the UAE President had outlined a $2 billion plan by the UAE to develop a series of integrated food parks across India.

In September 2023, the nations had announced a new joint space venture to use the space-based observation data and capabilities of the four countries, and create a space-based tool for policymakers, institutions, and entrepreneurs.

However, the attack on Israel by Hamas, had cast doubts over the grouping. In August 2020, the UAE had become the third Arab state, besides Egypt and Jordan, to fully recognise Israel and establish diplomatic relations. However, it recently joined several Arab Gulf states in warning Israel against launching an offensive on Rafah in the extreme south of the Gaza Strip.

Meanwhile, Israel is also a key part of the IMEC initiative, which calls for a sea-land connectivity project linking India with the Middle East and Europe in an apparent move to counter China's controversial Belt and Road Initiative.