I2U2: Economic partnership or strategic alignment

Umair Ahmad The I2U2 is a minilateral group that includes four states: India, Israel, the United States (US), and the United Arab Emirates (UAE). It is an economic and technological cooperation platform. However, the members of I2U2 also share strong defence ties and strategic partnerships, thus suggesting implications beyond economics and technology. I2U2 also carries a strategic weight as it operates in a region with shifting alignments, a fragile balance, and longstanding rivalries. I2U2 is also seen as a US-backed effort to soft-balance Chinese capital with parallel investment networks in the region. This insight argues that I2U2 is not merely a cooperative initiative; rather, it is part of a broader geopolitical reordering that influences regional alignments and security. I2U2, formed in October 2021, is an issue-based minilateral forum of complementary nations. The strategic foundations of I2U2 lie in the Abraham Accords, as it created a political space for broader frameworks like I2U2. I2U2 aims to strengthen the supply chains and enhance cooperation among the member nations. It is a small partnership to turn political ties into real-time investments and development projects. It is a project-driven, flexible model that promotes private-sector cooperation and leverages existing bilateral ties. I2U2 has six focus areas, as shown in Figure 1. While framed as development-driven, these economic patterns collectively reflect growing strategic alignment through interdependence rather than formal alliance. Figure 2 illustrates the key developments under the I2U2 framework from 2022 to 2025. The two tangible projects under I2U2 are the UAE’s pledge of $2 billion to build a food park in India, using Israeli and American technology to enhance agricultural productivity, reduce supply chain inefficiencies, and strengthen regional food resilience. In energy, a 300 MW hybrid renewable energy project in Gujarat, backed by joint investments, reflects a shared focus on clean e