The European Union has launched negotiations for a bilateral free trade agreement with the United A Emirates, positioning the UAE as a cornerstone of a broader economic partnership with the Gulf region. The move signals a strategic shift in the EU’s approach to unlocking trade potential with the Gulf Cooperation Council (GCC), with 2026 designated as a critical “year of action.”
Luigi Di Maio, the EU Special Representative for the Gulf region, described the initiative as part of a multi-level strategy during a session titled “Where Will Trade and Capital Flow Next?” at the World Governments Summit. He said the UAE agreement is intended to serve as a “building block towards a regional agreement.” The bilateral deal is being pursued alongside renewed efforts to finalise a comprehensive free trade agreement between the EU and the GCC, which has been stalled for years.
The announcement comes as both the EU and GCC countries seek to translate decades of dialogue into tangible outcomes. Jasem Mohamed AlBudaiwi, Secretary General of the Gulf Cooperation Council, called for 2026 to be a “results-oriented year,” describing it as “the finishing touch to all these years of work.”
The EU’s push for a deal with the UAE follows a series of recent trade successes. Just days before the announcement, the EU concluded negotiations on a free trade agreement with India, capping a remarkable nine-month period that also saw deals finalised with Latin American countries and Indonesia.
