Europe and the Gulf: A partnership poised for historic growth

In March 2001, His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, spoke at a symposium in Abu Dhabi titled “Political globalism and its impacts on Arabic countries”, calling for change, for governments to “overcome internal differences and begin an age of economic and social renaissance.” This is an excerpt from his speech highlighted in his authorised biography: “We must not allow the frustrations that have plagued the Arab nation in the past to thwart efforts to secure a better future for coming generations”. He added: “The economic integration that has thus far eluded the Arab World is key to rapprochement and solidarity...” This approach — advocating for setting aside differences to promote national interests — has played a key role in fostering closer ties between Gulf countries and the West.

It also now emerges as the seed of a relationship with Europe that may soon reach unprecedented levels, especially due to growing uncertainty and fragmentation between the United States and the European continent.

In a context marked by major disagreements between the United States and the European Union over trade policies, US President Donald Trump has announced new tariffs on Europe. The announcement comes at a time when European countries and companies are already seeking to redefine their strategic map. This is where the Gulf nations could present themselves as a valuable opportunity — as strategic allies of the European bloc.

Institutional relations between the EU and the Gulf Cooperation Council (GCC) — composed of Saudi Arabia, Bahrain, the United Arab Emirates, Kuwait, Oman, and Qatar — began in 1988 to strengthen economic and technical cooperation, as well as enhance collaboration in energy, industry, trade and services, agriculture, fisheries, investment, science, technology, and environment. Since then, several key milestones have followed.

In 2016, the EU and GCC agreed to establish a more structured dialogue on trade and investment. In 2022, during a meeting held in Brussels, the parties approved a joint cooperation programme for the period 2022–2027, outlining joint initiatives in areas such as trade, investment, and energy. And in 2024, the first EU–GCC Summit was held. There, a joint declaration was signed to foster enhanced collaboration between Europe and the Gulf countries, strengthening ties in trade, investment, people-to-people relations, energy, and connectivity.

According to official data from the European Commission, in 2024 Europe imported a total of €11.218 billion from the UAE, of which €11.055 billion were industrial products. In terms of exports, the continent exported €44.398 billion to the UAE, €40.963 billion of which were industrial goods. As for Saudi Arabia, Europe imported €33.070 billion and exported €36.840 billion, with industrial goods also dominating trade flows, €32.948 billion imported and €32.190 billion exported.

These figures confirm the strength of the relationship but also reveal room for improvement in sectors such as agriculture. In 2024, Europe exported €3.361 billion worth of agricultural products to the UAE and €4.622 billion to Saudi Arabia, representing 7.6% and 12.5% of total exports to those countries, respectively.

The European Union plans to strengthen its relations with the Gulf Cooperation Council nations for several reasons. First, because these nations are strategic allies in sectors such as energy and technology. Second, because the EU needs to diversify both its energy suppliers and sources of investment amid rising trade tensions between the United States and China.

But what can Europe and its companies offer the Gulf countries? The existing partnership between the two regions is already evident and healthy in terms of trade and investment. From a financial point of view, it is worth noting that in recent years, the GCC countries have aimed to diversify through sovereign wealth funds created from hydrocarbon revenues.

These funds play a crucial role in the progress of Gulf economies, and Europe is an attractive destination for investments in high-growth sectors such as technology and renewable energy. In Spain, for example, according to the Ministry of Economy, Trade and Tourism, Abu Dhabi alone has invested €71.592 billion since 2007. It is followed by Saudi Arabia (€14.750 billion), Kuwait (€12.585 billion), Qatar (€4.183 billion), Bahrain (€62.8 million), and Oman (€46.7 million).

Countries like Spain are accelerating their institutional engagement with Gulf economies, as evidenced by the recent meeting held in June between Spain’s Minister of Economy, Carlos Cuerpo, and his UAE counterpart, Abdulla bin Touq Al Marri, during the fifth Joint Economic Committee between the two nations. Both parties committed to strengthening relations in areas such as sustainable mobility, green energy, technological innovation, agribusiness, and food security.

Spain is not an isolated case. A clear sign of this is the agreement reached in April 2025 between UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and European Commission President Ursula von der Leyen to initiate negotiations for a free trade agreement.

The evolving global landscape — and the positions taken by both the US and China — are encouraging European companies and governments to look to the Gulf countries and deepen ties with a future-oriented perspective. For all these reasons, the Old Continent has become both an opportunity and a potential strategic ally for nations that, for years, have understood that ensuring progress for future generations depends on bridging gaps between previously disconnected economies.

Ignacio Schmölling is President of Grupo Bolschare