India and the United Arab Emirates signed a deal on establishing a commerce hall this week, a improvement that might have an effect on international commerce flows amid assaults within the Red Sea and increase efforts to counter China’s Belt and Road Initiative.

What occurred: The two nations signed an settlement on Tuesday associated to the India-Middle East-Europe Economic Corridor (IMEC) within the presence Indian Prime Minister Narenda Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan throughout the former’s go to to Abu Dhabi.

In an announcement, the Indian Ministry of External Affairs framed the deal as an inter-governmental framework settlement for the operation of the hall, saying it “would build on previous understandings and cooperation on this matter and foster India and the UAE cooperation furthering regional connectivity.” The ministry didn’t present extra particulars.

IMEC was introduced on the sidelines of the G20 in September. The hall will join India to Europe through a transport and rail community. India, Saudi Arabia, the UAE, the United States and a number of other European Union states signed a memorandum of understanding (MoU) on the hall throughout the summit.