Dubai calling: City set for closer ties with UAE as ministers pen cooperation deal
The UK is set to pen a deal to forge closer ties with the United Arab Emirates (UAE) on financial services today as ministers look to tap into deep pools of capital and promote cooperation between the City and the Gulf state.
City Minister Andrew Griffith will meet the UAE Minister of Economy, His Excellency Abdullah bin Touq Al Marr, in Dubai today to sign a Memorandum of Understanding (MoU) to promote cooperation in financial services cooperation between the two countries.
An agreement between the two countries has been drawn up to try and promote collaboration in areas like capital markets, wealth management, innovation, green finance, insurance, and SME financing, ministers said.
“Today’s Memorandum of Understanding progresses the UK’s relationship with the UAE in our respective strong financial service sectors,” City Minister Andrew Griffith told City A.M
“At this time of geo-political instability, trade and collaboration between nations is more crucial than ever.
“Deepening cooperation in areas such as capital markets, sustainable finance and insurance will help create a brighter future for both our economies.”
Executives from Barclays, HSBC, Lloyds of London and Standard Chartered, will be among a list of bosses to attend the meeting alongside the City minister. Griffith is now set to meet the UAE Minister of Economy for the UAE “at least every six months” to discuss cooperation, with the first meeting taking place in London in 2024.
The move was hailed by industry chiefs today. Charlotte Crosswell, who heads national fintech body, the Centre for Finance, Innovation and Technology and has joined the City minister in Dubai, said the move could deliver a boost to the country’s fintech sector.
“This will help British fintechs export more easily and will build the foundations for global standards in the future,” she said.
“Partnerships such as the one announced today between the UK and the UAE will be crucial. They will help validate and drive adoption of the standards that we are working with the UK fintech sector to help develop.”
Total trade between UK and UAE markets was £23.1bn in 2022, and the move could now be a boost for the City and allow it to tap into the UAE’s buoyant capital markets.
The wider Middle East has bucked a wider global downturn with a surge in public listings this year in which 13 IPOs collectively amassed $1.8bn in proceeds across the region in the first half of the year.
This marked a significant 44 per cent boost compared to the same period in 2022, according to EY.