Indian business ties underpin muted Arab response to New Delhi's actions in occupied Kashmir

Published August 15, 2019
In this 2017 file photo, Indian Prime Minister Narendra Modi, left, gestures as he receives Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed Al Nahyan at the airport in New Delhi, India. — AP
In this 2017 file photo, Indian Prime Minister Narendra Modi, left, gestures as he receives Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed Al Nahyan at the airport in New Delhi, India. — AP

Gulf Arab countries have remained mostly silent as India’s government moved to strip the Indian-occupied sector of Kashmir of its limited autonomy, imposing a sweeping military curfew in the disputed Muslim-majority region and cutting off residents from all communication and the internet.

This muted response is underpinned by more than $100 billion in annual trade with India that makes it one of the Arabian Peninsula’s most prized economic partners.

Regional heavyweight Saudi Arabia urged restraint and expressed concern over the brewing crisis. Other Gulf countries — Kuwait, Qatar, Bahrain and Oman — do not appear to have issued any statements. The United Arab Emirates has gone a step further by apparently siding with India, calling the decision to downgrade occupied Kashmir’s status an internal matter.

Saudi Arabia’s response to the Kashmir situation is complicated by its close ties with both India and Pakistan, which have fought two wars over the disputed Himalayan region, as well as its ideological rivalry with Turkey and Iran for supremacy in the Islamic world.

Prime Minister Imran Khan has reached out to leaders in Saudi Arabia and Bahrain in recent days to discuss India’s actions in Kashmir, but it’s unclear whether he would find Arab backing if he took his concerns to the United Nations Security Council.

The brief Saudi statement on the Kashmir events said the kingdom “is following up on the current situation” and called for a “peaceful settlement” in line with international resolutions.

Gulf Arab states are home to more than 7 million Indian expatriates who help drive the region’s economy and keep its cities teeming with doctors, engineers, teachers, drivers, construction workers and other laborers.

Nowhere in the region is this relationship more pronounced than in the UAE, where Indians outnumber Emiratis three to one. Bilateral trade surpassed $50 billion in 2018, making India the UAE’s second-largest trade partner.

In this Feb 10, 2018 file photo, the Burj Khalifa displays the flag of India to honor the visit of Indian Prime Minister Narendra Modi, in Dubai. ─ AP
In this Feb 10, 2018 file photo, the Burj Khalifa displays the flag of India to honor the visit of Indian Prime Minister Narendra Modi, in Dubai. ─ AP

Indian investments in the UAE amount to $55 billion and Indians are the largest foreign investors in Dubai’s real estate market, according to India’s Ministry of External Affairs. Meanwhile, DP World, Dubai’s global port operator, has plans to develop a logistics hub in Indian-controlled Kashmir.

The UAE doubled down on this strategic relationship when it signaled support for Indian Prime Minister Narendra Modi’s government as New Delhi rushed to send tens of thousands of additional soldiers to occupied Kashmir, already one of the world’s most militarised regions. The troops were deployed to prevent unrest and protests over the August 5 decision to strip the territory of its special constitutional status.

The UAE’s ambassador to India, Ahmed al-Banna, was quoted in local media in both countries as saying the changes in Kashmir “would improve social justice and security [...] and further stability and peace.”

The decision by Modi’s Hindu nationalist government carries religious overtones for Muslim residents of the Indian-occupied Kashmir.

The revocation of the region’s constitutional status, which needs the approval of the ruling party-controlled parliament, means Kashmiris lose their hereditary right to jobs, scholarships and land ownership. Government critics see the move, which would allow Indians from outside the region to permanently settle and buy land, as an attempt to alter Kashmir’s culture and demographics with Hindu settlers.

Read: Srinagar turned into a maze of razor wire and steel barriers

These religious tensions have made Kashmir another field of contest between Saudi Arabia, Iran and Turkey to champion Muslim causes worldwide, said Hasan al-Hasan, an expert on Gulf-Indian relations at the International Institute for Strategic Studies.

In this Feb 20, 2019 file photo, Saudi Arabia's Crown Prince Mohammed bin Salman shakes hand with Indian Prime Minister Narendra Modi during a ceremonial welcome in New Delhi, India. ─ AP
In this Feb 20, 2019 file photo, Saudi Arabia's Crown Prince Mohammed bin Salman shakes hand with Indian Prime Minister Narendra Modi during a ceremonial welcome in New Delhi, India. ─ AP

“The Turks are trying to cultivate influence in Kashmir. The Iranians are trying to cultivate influence in Kashmir. So I doubt that Saudi Arabia would want to concede a lot of ground to the Turks and the Iranians in terms of this broader symbolic contest over the leadership of the Muslim world,” he said.

Turkey, which has less than $7 billion in annual bilateral trade with India, has thrown its weight behind Pakistan. A readout from a recent call between the President Recep Tayyip Erdogan and Pakistan’s prime minister emphasised Kashmiri self-determination.

Iran permitted a symbolic protest of around 60 students outside the Indian Embassy in Tehran last week, and a senior cleric there told worshippers during Friday prayers that India’s actions in Kashmir were “an ugly move”. However, both President Hassan Rouhani and the foreign ministry have issued more tempered statements, calling for dialogue and peace between Pakistan and India. The varied response comes as bilateral trade plummets following India’s decision to stop buying Iranian oil due to US sanctions on Iran.

In contrast, Saudi Arabia is home to 2.7 million Indians and is India’s second biggest supplier of oil after Iraq, according to Indian government statistics. Saudi oil exports to India dominated $27.5 billion in bilateral trade last year.

On Monday, the eighth day of the military curfew in Kashmir, India announced one of the biggest ever foreign investments in the country — a $15 billion purchase by Saudi Arabia’s state-owned Aramco in India’s Reliance oil and chemicals business. Beyond that, Saudi Crown Prince Mohammed bin Salman has vowed $100 billion of Saudi investments in India by 2021.

Gulf Arab countries may also be wary of supporting Kashmiri rights because it centers on “people’s right to their own freedoms”, said Hafsa Kanjwal, a Kashmiri American assistant professor of South Asian history at Lafayette College.

Bahrain, rocked in recent years by Arab Spring protests, reported that a number of people were arrested after South Asian residents held a protest there in support of Kashmir and against India after Sunday’s Muslim prayers for the Eidul Azha holiday.

“Kashmir is linked to movements for self-determination and people’s rights and democracy, which these Gulf countries, and Israel, are very much against and very much wary of,” Kanjwal said.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Terrorism upsurge
Updated 08 Oct, 2024

Terrorism upsurge

The state cannot afford major security lapses. It may well be that the Chinese nationals were targeted to sabotage SCO event.
Ban hammer
08 Oct, 2024

Ban hammer

THE decision to ban the PTM under the Anti-Terrorism Act is yet another ill-advised move by the state. Although the...
Water tensions
08 Oct, 2024

Water tensions

THE unresolved tensions over Indus water distribution under the 1991 Water Apportionment Accord demand a revision of...
A bloody year
Updated 07 Oct, 2024

A bloody year

Using the Oct 7 attacks as an excuse to wage endless aggression on Middle East, Israel has crossed all red lines.
Bleak cotton outlook
07 Oct, 2024

Bleak cotton outlook

THE extremely slow arrival of phutti at the ginning factories of Punjab and Sindh so far indicate a huge drop in the...
Killjoy neighbours
07 Oct, 2024

Killjoy neighbours

AT the worst of times in their bilateral relations, India and Pakistan have not shied away from carrying out direct...