British Prime Minister Keir Starmer’s recent visit to the UAE at the end of 2024 highlighted the growing significance of the UK-UAE partnership in shaping a future characterized by growth, stability, and innovation. In an era marked by economic uncertainty and climate urgency, this bilateral relationship is evolving beyond traditional trade and investment ties to focus on sustainability, technology, and green finance as foundations for a transformative global agenda.
Amid pressing global challenges such as climate change, economic volatility, and rapid technological advancement, the UK and UAE are uniquely positioned to drive solutions and lead initiatives. By leveraging their complementary strengths, both nations set the stage for a shared vision that addresses immediate issues while advancing a sustainable, technology-driven future.
Building stronger economic foundations: Trade, investment, and growth
The economic relationship between the UK and UAE has become increasingly important, with bilateral trade growing steadily. By October 2024, UK exports to the UAE totaled £844 million ($1.04 billion), while imports amounted to £385 million ($473.2 million), resulting in a trade balance of £459 million (564.1 million). This positions the UAE as the UK’s 18th-largest trading partner, accounting for 1.4 percent of total UK trade in the 12 months leading to Q1 2024, according to the Observatory of Economic Complexity (OEC).
Both nations actively diversify their economies, moving beyond traditional sectors into emerging fields such as renewable energy, advanced technology, and sustainable finance. Negotiations for a Comprehensive Economic Partnership Agreement (CEPA) between the two countries indicate a mutual desire to strengthen these economic ties further. Though the agreement is not yet finalized, it is projected to elevate bilateral trade to £25 billion ($30.7 billion) by 2030, creating opportunities for expanded investments while prioritizing traditional industries. The UK views the UAE as a crucial partner for accessing new markets in a post-Brexit landscape.
Mubadala and the Abu Dhabi Investment Authority (ADIA) are already key players in reshaping the UK’s infrastructure and technology sectors. Simultaneously, the UAE benefits from the UK’s expertise in financial services, legal frameworks, and innovation ecosystems, creating a reciprocal flow of capital and knowledge. This partnership is bolstering the economies of both nations and providing a gateway for global investors to capitalize on emerging opportunities in these dynamic markets.
Technological collaboration: Leading in AI and fintech
Technology is one of the most promising areas for collaboration between the UK and UAE, particularly in fintech, artificial intelligence (AI), and venture capital. The UK’s fintech sector, valued at £11 billion (13.5 billion), is a hub of global innovation, while the UAE’s Vision 2031 outlines a path toward a tech-driven economy.
The synergy between the two nations is already evident. UK-based fintech firms are exploring the UAE’s expanding digital banking and blockchain markets, facilitated by partnerships with entities such as Emirates NBD and Mubadala. These collaborations accelerate digital transformation across the Gulf region and yield significant economic returns.
The UK’s academic leadership in machine learning and data science in the AI sector complements the UAE’s substantial investments in AI infrastructure. Together, these nations are developing cutting-edge solutions in various areas, including autonomous vehicles and smart cities, creating innovations with global implications. Such technological partnerships are reshaping industries and establishing new standards for international collaboration in the digital age.
Leading the green transition: Renewable energy and sustainability
The heart of the UK-UAE partnership is a mutual commitment to achieving net-zero targets by 2050. This green transition is a defining characteristic of their bilateral collaboration, as both nations work to spearhead global efforts in renewable energy and sustainable development.
The UAE, a global leader in clean energy investment, has substantially contributed to renewable initiatives worldwide. Its flagship renewable energy company, Masdar, exemplifies this commitment through projects like the £1.3 billion ($1.6 billion) joint venture with Octopus Energy to develop one of the world’s largest offshore wind farms in the UK. Such cross-border collaborations advance sustainability goals and create economic opportunities in emerging green industries.
Green finance is another critical area of focus. The issuance of green bonds and Sukuk is funding large-scale environmental projects, with the UAE emerging as a leader in the green Sukuk market. Meanwhile, the UK’s expertise in green bonds provides a strong platform for mobilising capital toward the global low-carbon transition. This innovative financial collaboration unlocks the resources necessary to address one of humanity’s most urgent challenges – climate change.
Read more: UAE economy emerges as the most competitive as per Arab Monetary Fund
Charting a vision for 2025 and beyond
As we move into 2025 and beyond, the UK-UAE alliance is a powerful example of how collaboration can drive significant advancements in trade, technology, and sustainability.
By leveraging their technological strengths, green finance, and sustainable investment, the two nations are establishing a cooperative model that provides economic benefits and environmental improvements. Prime Minister Starmer’s visits mark a significant milestone in this evolving partnership, emphasizing their shared vision of growth and innovation. For businesses, investors, and policymakers, the UK-UAE collaboration presents a compelling opportunity to take advantage of transformative trends. This partnership goes beyond merely pursuing bilateral interests; it aims to lead the global community toward a more sustainable and technology-driven future.
Zahara Sadiq is the founder of Impact Gate, a boutique consultancy specializing in impact investing across the GCC, Africa, and beyond
