Trade between the United Kingdom and the United Arab Emirates could reach £30 billion ($39.6 billion) by 2030, but a new bilateral economic pact focused on emerging technologies could help unlock further growth, Lord Davies of Abersoch has told Arabian Business.
The UK co-chair of the UAE-UK Business Council said the two countries should build on the Gulf trade agreement by pursuing a dedicated economic partnership designed to support artificial intelligence (AI), data and other technology-intensive industries.
His comments come as commercial ties between the two countries continue to strengthen, with bilateral trade already exceeding £25 billion ($33 billion) and British businesses expanding their presence across the Emirates.
UK-UAE Trade Gains Momentum Despite Regional Disruption
According to Davies, trade between the UK and UAE has rebounded strongly following disruption caused by regional conflict earlier this year. The recovery highlights the resilience of commercial relations between the two countries and the continued importance of the Emirates as a market for British goods, services and investment.
More than 14,000 British companies export goods and services to the UAE, underlining the breadth of the relationship across multiple industries.
The existing trade relationship also provides a foundation for further cooperation as both countries seek to expand commercial opportunities, attract investment and strengthen their positions in rapidly evolving global markets.
New Economic Pact Could Focus on AI and Advanced Technology
Davies has argued that a bilateral economic agreement should complement the Gulf trade framework while addressing the needs of modern, technology-driven industries.
Artificial intelligence, data infrastructure and other advanced technologies are increasingly important areas of international economic competition. A dedicated agreement could help create new opportunities for businesses operating across these sectors while supporting closer commercial collaboration between British and Emirati companies.
Such a partnership could also help both countries respond to changes in global trade, where digital services, technological innovation and cross-border investment are becoming increasingly significant drivers of economic growth.
British Investment in the UAE Expands Across Key Industries
British investment in the Emirates is growing particularly in digital finance, life sciences and clean energy, according to Davies.
These sectors offer opportunities for collaboration as the UAE continues to develop its technology and innovation capabilities, while British companies seek access to international markets and new investment opportunities.
Digital finance and AI could create scope for closer cooperation in financial technology and data-driven services. Life sciences and clean energy also offer potential areas for investment, research partnerships and the development of new commercial ventures.
With trade already exceeding £25 billion, deeper cooperation across these industries could play an important role in supporting the ambition of reaching £30 billion by 2030.
A Strategic Opportunity for UK and UAE Businesses
The proposed economic pact would come as both countries look to strengthen their commercial relationship beyond traditional trade and into sectors with greater technological and investment intensity.
For British exporters, the UAE represents an established market with opportunities across goods, professional services and emerging industries. For Emirati businesses and investors, closer economic cooperation with the UK could provide additional avenues for international partnerships, innovation and access to expertise.
Although the £30 billion trade target remains an ambition rather than a confirmed outcome, the combination of an established trading relationship, expanding investment and interest in technology-focused cooperation provides a basis for further growth.
As discussions around a future bilateral agreement develop, the central question will be how effectively both countries can translate that ambition into practical measures that support businesses, encourage investment and deepen economic ties.
