If one is to look at this dispassionately, UAE is in a major bind. Their oil based economy was being offset by their tourism industry and then COVID-19 threw in a massive wrench in their plans. The Yemen conflict was already draining their coffers even prior to the emergence of COVID-19, but after that, their fiscal situation has dramatically worsened.
In such a situation, what are they to do? They need to get more business alignment and FDI in. Both Israel and India can offer them trade (as does Pakistan) but given the situation on hand, the more the merrier (if the approach is to diversify).
The sovereign funds that most of the ME countries bet on big are also running across challenges as there is a contraction in the global markets. Their investments are not providing the returns they were accustomed to as such this time around, economy is the driving factor. In the past, when the Emeratis had a good cushion, they could talk the brotherhood talk and continue doing business, in essence making hay while the sun was shining, now things are more binary.
