The United Arab Emirates Monday declared full support for India’s candidature for a permanent seat in the UN Security Council as the two countries decided to expand their political, economic and energy ties.

The two sides also signed an agreement to hold political consultations on international and regional affairs, a move that is expected to build on their robust bilateral relations.

UAE Foreign Minister Sheikh Abdullah Bin Zayed Al-Nahyan, who touched down here on a day-long visit Sunday, discussed a host of bilateral, regional and global issues. Sheikh Abdullah also called on Vice President Hamid Ansari and Prime Minister Manmohan Singh.

India and the UAE, home to over 1.5 million Indian diaspora, discussed an array of bilateral and international issues, including the global economic recovery, UN reforms and counter-terror cooperation. At the end of the talks, the two sides signed a pact on political consultations and decided to step up mutual investment in each other’s country. The UAE plans to appoint a joint Task Force to increase trade and investment with India.

The two sides also decided to increase co-operation in technology transfer and research and development in areas related to space, agriculture, pharmaceuticals and bio-technology.

The UAE expressed its desire to enhance investment in key sectors of Indian economy like power, oil and gas and tourism. “We already have some investment here. But we are looking forward to increasing our presence in various sectors like power, oil and gas and tourism,” Khalid Ghanem Al Ghaith, assistant minister for economic affairs, told reporters on the sidelines of a business summit here.

According to Ghaith, the trade and investment opportunities between both the countries were enormous and had to be tapped. “There is an enormous opportunity for trade and investment here. A lot more has to be done to tap this potential,” he said. Indian industry on its part also showed keen interest in increasing their presence in the UAE.

“Industries should meet more and interact. There is a huge potential for trade and investment on both the sides,” said Atul Punj, chairman, Punj Lloyd.

Meanwhile, UAE electricity utility TAQA said that it was looking for investment opportunities in south India’s power sector. “We are looking for investment opportunities in the power sector in southern India region,” said Abdullah Bin Saif Al Nuaimi, director general, TAQA.

The two sides were also exploring possibilities of setting up industrial complexes in the Gulf as well as in India and third countries to cater to the markets worldwide.

Bilateral trade between India and the UAE was at $43.46 billion in 2009-10.

UAE supports India for UNSC seat, to enhance investment