New Delhi, March 24 (IANS) India and the United Arab Emirates (UAE) are poised to begin a new phase of political and economic cooperation by signing a clutch of agreements when the Ruler of Dubai and UAE's Prime Minister Sheikh Mohammed Bin Rashid Al Maktoum comes here on a two-day visit Sunday.

New Delhi has made elaborate preparations to give a red carpet welcome to Sheikh Mohammed, who is keen to pack as many meetings as possible in a little over 24 hours - the duration of his visit.

The two countries are expected to sign seven pacts to enhance trade and investment and encourage closer strategic and cultural ties, diplomatic sources told IANS.

The two countries are expected to sign key agreements in the areas of political and economic cooperation after Sheikh Mohammed meets Prime Minister Manmohan Singh at the stately Hyderabad House Monday on a wide range of bilateral and regional issues, including terrorism and the Middle East peace process.

Sheikh Mohammed will be given a ceremonial welcome at the Rashtrapati Bhavan before sitting down for a series of meetings with President A.P.J. Abdul Kalam, Manmohan Singh, chairperson of the ruling coalition Sonia Gandhi and External Affairs Minister Pranab Mukherjee.

Sheikh Mohammed, who comes here accompanied by his senior ministers and top businessmen, will also address Indian business honchos at a meeting organised by the country's apex industry and trade bodies.

The UAE and India will sign a Double Taxation Protocol and a visa avoidance agreement on government officials and diplomats holding the passports of either country to ease visits to the other country, diplomatic sources told IANS.

India and the UAE are also discussing agreements on customs cooperation, exchange of prisoners (an extradition agreement already exists) and an agreement on combating international terrorism, money laundering and other crimes.

Sheikh Mohammed's visit is powered by a new perception of India in the Middle East as a rising Asian economic and political power and an increasing recognition of "shared values".

His visit to India comes barely three days after Bahrain's Crown Prince Shaikh Salman bin Hamad al Khalifa concluded his visit to this country and puts the spotlight on New Delhi's burgeoning ties with the Gulf region.

From India's point of view, seeking cooperation with the UAE on security issues, including the fight against global terrorism and targeting funding of terrorists, is high on agenda.

In the wake of new disclosures by National Security Adviser M.K. Narayanan about terrorists getting funds via banking channels in the UAE, Manmohan Singh is likely to raise this issue with Sheikh Mohammed.

India and the UAE - home to a large Indian diaspora - are expected to discuss fresh measures to strengthen institutional links between their law enforcement agencies and financial and regulatory authorities and institutions.

Taking business ties to new heights will, however, top the priority of both countries during Sheikh Mohammed's visit. Interestingly, the largest number of companies registered in the UAE is from India.

IT, telecom, pharma, bio-technology, nano-technology, manufacturing for regional markets and the services sector like health, education and tourism holds great potential for joint collaborations.

In an interview with Khaleej Times, Mukherjee set the tone for the visit saying the "UAE has been one of our key allies".

"The Indo-UAE relationship had been reinforced by the long-standing people-to-people and commercial contacts," he said, adding that this relationship was based on "shared traditions, historical contacts and cultural values".

Sheikh Mohammed last visited New Delhi and Mumbai in 1974 as the defence minister of the UAE while accompanying his father, the late Shaikh Rashid bin Saeed Al Maktoum.