The UK has recently been focusing on expanding cooperation with the GCC region, conducting key discussions with the UAE, Saudi Arabia and Qatar as it progresses towards a free trade deal with the region.
Today, His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, and Minister of Finance, met with Her Excellency Emma Reynolds, the UK’s Economic Secretary to the Treasury.
“Our discussions focused on accelerating investment, building sustainable financial frameworks, and fostering innovation in the financial sector. The UAE remains committed to strengthening its position as a strategic partner in the region. We continue to enable the private sector’s growth and open new avenues for economic collaboration,” stated Sheikh Maktoum in a post on social media platform X.
Accelerating investment and trade
During the meeting, Sheikh Maktoum said the UAE and the UK enjoy a deep-rooted economic relationship that continues to evolve and expand, reflecting the two countries’ shared vision for a dynamic, sustainable global economy. The UAE remains committed to fostering a strategic partnership with the UK that supports long-term prosperity and innovation-led growth, he stressed.
Sheikh Maktoum added that the meeting underscored the importance of accelerating investment and trade, building on the UAE’s position as the UK’s largest trading partner in the Middle East. The two sides also discussed closer cooperation to enhance investment flows, promote sustainable financial frameworks, strengthen financial markets and leverage opportunities for growth in financial services and fintech.
UAE-UK trade hits £23.4 billion
The UAE-UK trade relationship is experiencing continuous development in various fields, including investment, trade, health, energy, education, space, tourism, food security and technology. Through bilateral platforms such as the UK-UAE Business Council, the Joint Taskforce, and the Joint Economic Committee, the two countries identify and leverage joint opportunities for economic growth.
In a recent report, the UK’s business and trade department revealed that bilateral trade between the two nations grew 2 percent annually to £23.4 billion in Q3 of 2024. The UAE was the UK’s 19th largest trading partner in the four quarters to the end of Q3 2024, accounting for 1.4 percent of total UK trade.
In addition, over 5,000 UK businesses operate in the UAE. In 2019, new rules were introduced allowing 100 percent foreign ownership in several sectors including technology, outer space, renewable energy and artificial intelligence. The UK is also the UAE’s largest source of Foreign Direct Investment, meaning this new regulation will benefit both Britain and the UAE.
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GCC-UK Free Trade Agreement talks progress
The ongoing GCC-UK Free Trade Agreement (FTA) negotiations launched on June 22, 2022. This deal is expected to further strengthen bilateral relations and the strategic economic relationship between the UK and GCC. The UK Minister for Investment Baroness Poppy Gustafsson recently stated that negotiations have been progressing at pace and the two sides are having constructive discussions on goods, services and sustainable trade provisions.
It is estimated that the GCC-UK deal could increase bilateral trade by 16 percent, adding an extra $10.85 billion per year to trade between the UK and GCC countries in the long run. The UK and GCC’s bilateral trade currently amounts to around $72.41 billion.
Speaking to QNA, Gustafsson described Qatar as a key market for the UK both for trade and investment because of its dynamic and diversifying economy, and the wide variety of growth areas identified in its National Vision 2030. The two countries share a robust and flourishing economic partnership, with total trade in goods and services reaching $7.06 billion in the first three quarters of 2024.
During her recent visit to Saudi Arabia, Gustafsson noted that the UK is genuinely committed to enhancing its trade ties with the Kingdom. Bilateral trade between Saudi Arabia and the UK soared to $21 billion in 2023, with a comprehensive free trade agreement between the U.K. and the GCC on the horizon, poised to further boost trade.
