The UAE - Gateway to MENA Markets

 

The United Arab Emirates (UAE) is one of the UK’s most dynamic and high-potential export destinations. With its strategic location at the crossroads of Europe, Asia, and Africa, a business-friendly regulatory environment, and high demand for British goods and services, the UAE offers exceptional opportunities for UK exporters across a wide range of sectors. From luxury vehicles and pharmaceuticals to digital services and engineering equipment, UK firms continue to thrive in this fast-growing and innovation-focused market. Whether you're an SME taking first steps into the Gulf or an established exporter looking to expand regionally, the UAE presents a gateway to sustained growth and profitability.

Dubai has developed more than 20 "free zones" to attract foreign investment, with benefits including full foreign ownership, 100% repatriation, zero import-export taxes, and more.

Trade Snapshot

According to the UK Government’s Trade & Investment Factsheet for the UAE (for the four quarters to end of Q1 2025, i.e. to end‑March 2025):

  • Total UK–UAE bilateral trade reached £23.8 billion, up 3.6% year-on-year.
  • UK exports to the UAE: £14.9 billion, +1.6% on prior year.

- Goods: £7.6 billion (−9.0%)

- Services: £7.3 billion (+15.4%)  

  • UK imports from the UAE: £8.9 billion, up 7.3%.

- Goods: £3.9 billion (+9.6%)

- Services: £5.0 billion (+5.5%)  

  • The UK recorded a trade surplus with the UAE of around £6.0 billion, split into a goods surplus (£3.7 bn) and services surplus (£2.3 bn).

Rankings & Context

  • The UAE is the UK’s 19th largest trading partner, accounting for ~1.3% of total UK trade in goods and services.
  • It ranks 11th for UK goods exports (2.1% share), and 19th for UK services exports (1.4%).
  • In 2023, over 5,000 UK businesses were operating in the UAE; more than 85% of UK goods exporters to GCC markets are SMEs — nearly 10,700 UK SMEs exporting to the UAE alone in 2020.

Leading Sectors & Demand

UK Goods Exports to UAE

Top 5 exported categories in value to end‑March 2025:

  1. Mechanical power generators (intermediate goods) – £1.0 billion (13.8% of goods export total; –21.1% change)
  2. Cars – £933 million (12.3%; –16.5%)
  3. Telecoms & sound equipment (capital) – £625 million (8.2%; +44.7%)
  4. Medicinal & pharmaceutical products – £441 million (5.8%; +54.1%)
  5. General industrial machinery (capital goods) – £327 million (4.3%; +14.9%)

UK Services Exports to UAE

Services exports grew strongly (+15.4%), approaching parity with goods. High appetite is evident for professional, financial, digital, and business services helping accelerate the UK surplus in services trade.

Market Appeal & Opportunities

  • High income levels and strong purchasing power across the UAE support sustained demand for premium UK goods and services – from pharma to advanced machinery and luxury autos.
  • SMEs have particularly benefited: more than 85% of UK goods exporters to the UAE are SMEs, with continued expansion.
  • Until a formal UK–GCC free trade agreement is concluded (near finalisation as of mid‑2025), exporters should monitor upcoming provisions affecting automotive, financial services, visas, and technology cooperation sectors.

Why is the UAE a Key Market for UK Firms?

  • Strong trade volume—with UK exports nearly triple UK imports, delivering a substantial trade surplus.
  • Balanced goods and services strength, with services growing particularly fast.
  • Clear demand for UK innovation in pharmaceuticals, telecoms, high-end machinery and automotive.
  • Regulatory friendliness toward SMEs, who comprise the majority of UK exporters in the region.
  • Strategic position in broader Gulf trade dynamics, including the pending GCC trade deal.

Free Trade Zones – A Strategic Advantage for UK Exporters

  • 100% foreign ownership available in UAE free zones—no need for a local partner or sponsor
  • Duty-free imports and exports, with full exemption from customs charges within zones
  • Full repatriation of profits and capital—no restrictions on moving funds abroad
  • Sector-specific zones such as Jafza (logistics), DAFZA (tech & air freight), RAKEZ (manufacturing), DIFC/ADGM (finance)
  • English common law governs DIFC and ADGM—ideal legal framework for UK legal, financial and fintech exporters
  • Fast-track setup—businesses can often incorporate and begin trading within days

Recommendations for UK Companies

  • Target sectors: continue focus on pharma, telecom/tech, industrial machinery—plus financial/digital services.
  • SME engagement: build partnerships via UK‑UAE trade bodies (e.g. British Business Group Dubai, Department for Business & Trade), and Chamber International.
  • Watch developments in the anticipated UK–GCC trade agreement, which may bring expanded access and regulatory alignment.
  • Invest in local presence: many UK companies (especially SMEs) register local offices or join local free zones to meet regulatory requirements. 
 

Telephone one of our specialists on 0845 0347200 or email for advice.

Exporting to the Arab World? Apply online for your Certificates of Origin here.