Last year marked a period of tangible advancement in the trade and commercial relationship between the UK and the UAE. Our partnership has matured, deepened and created even stronger foundations for shared future prosperity.
Progress is reflected in the numbers. In the year to the end of June last year, our bilateral trade reached a remarkable £24.8 billion ($33.4 billion), an increase of nearly 10 per cent from the previous year. UK exports climbed to £15.8 billion. An impressive 30 per cent surge in services exports, demonstrates the powerful alignment between British strengths in finance, the law, technology and consulting, and the UAE’s increasing demand for high-value, knowledge-based services.
Goods such as mechanical equipment, cars and pharmaceuticals remain a vital component of our exports, but the evolution of our trade relationship means that services now account for nearly half of all UK exports. This also reflects the UAE’s successful economic diversification and its emergence as a global hub for services – often built on a UK model such as in ADGM and DIFC – in addition to trade and logistics.
Beyond the impressive trade figures, our relationship is being strengthened on the ground. The presence of more than 5,000 UK companies in the UAE indicates the long-term commitment and confidence that British businesses have in the Emirates, which fosters collaboration and innovation. The UAE Ministry of Investment records that the UK is the largest source of foreign direct investment stock in the UAE; and at 12 per cent that is 8 per cent ahead of the US in the second place.
This progress is supported by the effort by both nations to enhance our bilateral co-operation through formal platforms like the UAE-UK Business Council and the Abu Dhabi and Dubai British Chambers of Commerce. These mechanisms are instrumental in fostering connections in priority sectors such as infrastructure, energy, education and technology.
The Dubai Airshow was testament to the UAE’s vision as a leader in aerospace. The future Al Maktoum International Airport at its core, the UK is a committed partner with our early interest in providing up to $3.5 billion from UK Export Finance, the UK government’s export credit agency. With our world-renowned capabilities in airport design, operations and regulation, the UK hopes to work with the UAE to help redefine the passenger experience for generations to come.
Major orders for Airbus aircraft and for Rolls-Royce engines also represented a resounding vote of confidence in British engineering and advanced manufacturing. These multi-billion-pound deals support tens of thousands of highly skilled jobs across the UK.
Criminal networks don’t respect borders. Financial centres like the UK and the UAE are targeted by organised criminals to move and hide their money. International co-operation to tackle crime, including money laundering, is essential. That is why UK Foreign Secretary Yvette Cooper will hold an international Illicit Finance Summit in June. The work of our two countries in this area has grown stronger, underpinned by the UK-UAE Partnership to Tackle Illicit Financial Flows, to which UK Minister of State for Security Dan Jarvis recommitted during his visit to the UAE last March.
Throughout the previous year, there was significant engagement between law enforcement, financial intelligence, policy and judicial experts from both countries, including a high-level Emirati delegation visiting London in September. Much more is planned throughout the coming year. We learn from one another and provide support directly to disrupt criminals and hold them accountable through law enforcement action and extraditions.
The UK’s huge educational presence in the UAE creates pathways for Emiratis (and others who live in the UAE) to access world-class education while maintaining their cultural identity and connection to their families and home.
Major UK universities – including Heriot-Watt University, the University of Birmingham, Middlesex University, DeMontfort and the University of Manchester – have established substantial campuses and partnerships in Dubai and the Northern Emirates.
If business, law enforcement and education represent limbs of our partnership, then people-to-people contact is its beating heart. The movement of people between our two nations tells a story of affinity and connectivity that transcends government policy or diplomatic protocol. Alongside the tourism that flows in both directions, many British citizens have chosen to make the UAE their home, making it one of the largest diasporas in the region. I am proud to see their contributions across the economy and society, and in these endeavours, they also contribute to the UK: stronger human ties and the absorption of British culture and standards, for example in the financial and legal systems in ADGM and DIFC, support the economy back home.
As we look ahead to this year, the UAE’s determined push towards a diversified and knowledge-based economy, coupled with its robust non-oil gross domestic product growth, creates a fertile ground for British firms to thrive. The focus on innovation and services will continue to be a central with immense potential in fields like fintech, sustainability consulting and education technology.
The anticipated UK-GCC free-trade agreement holds the promise of unlocking new opportunities by reducing barriers and enhancing regulatory alignment to the benefit of exporters and investors. For British businesses, the UAE will solidify its role not just as a vital market, but as a strategic springboard to the wider region.
