Guest Articles

Today, our partnership is increasingly shaped by a shared vision for future growth defined by innovation, openness, and collaboration with international partners. At its core, the UK and UAE are investing, jointly and deliberately, in the partnerships, frameworks and agreements that will drive long-term prosperity for both nations. 

Navigating a Challenging Global Environment

This relationship is sharpened by the complex regional and global environment in which we now find ourselves. Geopolitical tensions, shifting trade patterns, and broader economic uncertainty continue to test markets around the world. At the time of writing, the region is experiencing a period of heightened tension, with clear implications for global economic stability and trade flows.

Against this backdrop, the UAE has demonstrated remarkable resilience. The UK has stood firmly with our Emirati partners, including the deployment of RAF Typhoon aircraft in response to recent Iranian aggression. Emirati defence forces have excelled in safeguarding the country’s infrastructure and everyone living here, including over 200,000 Brits that call the UAE home.

In uncertain times, steady, practical and mutually supportive partnerships matter more than ever. 

British Businesses in the UAE: Calm, Committed & Confident

British businesses are here for the long term. 

From the conversations I’ve had with British firms across the Emirates, thanks to the response of the UAE leadership and the resilience of the country, UK companies in the UAE remain notably calm in approach, committed to the market, and confident in the future of the country and its economy.

This confidence reflects the UAE’s enduring strengths as a pro-business environment with world-class infrastructure and a regulatory system that continues to evolve in partnership with business.

Trade & Investment 

The UAE is the UK’s leading trading partner in the region, with bilateral trade reaching roughly £25 billion (Dh125 billion) last year. The UK is also the UAE’s largest source of foreign investment stock, according to the UAE Ministry of Investment. More than 5,000 British businesses are now established here, underlining long-term commitment, while over 14,000 continue to export into the market. Each year, hundreds more UK firms engage with the Department for Business and Trade to enter or expand in the market; further evidence of sustained commercial momentum.

Investment flows both ways. Through the UAE–UK Sovereign Investment Partnership, Emirati sovereign wealth funds have mobilised close to £30 billion – around triple the original target – into key UK sectors including as technology, life sciences and clean energy.

For UAE investors, the UK remains a partner of choice: a stable, open, globally connected economy with deep capital markets, world-class institutions, and a strong rule of law.

The UK’s Modern Industrial Strategy: A Clear Proposition to International Partners

At the heart of the UK’s approach to growth sits the Modern Industrial Strategy – our 10-year plan to make the UK the best country to invest in anywhere in the world.

The UK is a thriving global economy founded on stability, fairness, and the rule of law; and propelled by world-leading sectors and companies. We have a record of extraordinary research and innovation; we are champions of openness and free trade; and we continue to be a magnet for international talent and capital.

The Strategy focuses on eight priority sectors, including professional business services, life sciences, advanced manufacturing, financial services, defence, digital and technologies, clean energy, and creative industries.

This is not just a domestic programme; it is a global proposition. It is a clear invitation to partners such as the UAE to invest, collaborate, and co-create the industries of the future. This approach resonates strongly with the UAE’s own economic model, creating natural alignment between the two countries.

Agreeing the Way Ahead

In May 2026, as a clear signal of the UK’s long-term political and economic commitment to the Gulf, the UK and GCC concluded negotiations on a landmark Free Trade Agreement. It’s the first deal of its kind between the GCC and a G7 country, and the most ambitious the GCC has agreed to date. 

The agreement has the potential to increase UK trade with the region by around 20%, equivalent to £15.5 billion a year, opening opportunities in both directions. UK businesses will gain easier access to one of the world’s fastest-growing consumer markets, while Gulf exporters will benefit from preferential access to the UK’s 66 million consumers.

In practical terms, the deal will reduce costs and friction for businesses trading between the UK and UAE, including by eliminating duties worth an estimated £580 million annually on UK exports to the GCC – £360 million of which will fall away from day one. In return, the UK will remove tariffs on all goods from the GCC at entry into force, an unprecedented step in any UK trade agreement. 

Alongside this, the agreement includes ambitious provisions on data, services and customs facilitation. It has now been concluded and is moving through final legal processes, with a clear focus on bringing it into force as quickly as possible so that businesses can realise the benefits in practice.

Turning Opportunity into Growth

This is a moment of real opportunity. 

As a commercial and economic diplomacy team at the heart of the UK-UAE relationship, our role is to turn this into results, supporting both British and UAE-based companies to invest, grow, and succeed.

My team and I stand ready to help businesses turn these opportunities into long-term growth.

This article was published by Kreston Menon in its quarterly newsletter titled ‘Kreston Menon News’. Click here to visit their website.