With that, the UK has become a prominent market for the UAE lenders. The investments by Emirati banks in the Kingdom of Saudi Arabia and Egypt increased to Dh90.4 billion, accounting for 15.5 percent of banks’ total assets invested abroad, WAM reported. 

According to WAM, Dr Liam Fox, Secretary of State for International Trade, said, “The question of whether bilateral trade agreements [with individual countries are possible] is something we want to explore after we have left the EU.”

Last month, the UK was preparing to explore possibility of free trade agreements (FTAs) with countries in the Gulf region. However, Fox added that the UK is not allowed to establish FTAs until it leaves the EU. 

“As the first major international moment after we leave the EU, Expo 2020 Dubai will mark the UK becoming a truly independent trading nation,” he said.  

However, UK-GCC trade relations have strengthened over the years as UK exports to the Gulf and the UAE banks’ investments in the UK have increased. 

Based on the UK Department of International Trade data, the UK is superseding China in its export rate to the region. The trade valuation between the UAE and the UK alone reached £16.3 billion in the second quarter of 2018. 

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The bank has advised the UK to regulate its Emerging 7 (E7) trade policy. The Emerging 7 includes China, India, Pakistan, Nigeria, Bangladesh, Vietnam and Indonesia. Annual exports to the Emerging 7 values £24bn. However, the bank stated the amount should be £34bn a year.

According to the Standard Chartered Bank’s report, of all the G7 countries that include industrialized democracies like Canada, France, Germany, Italy, Japan, the UK and the US, Germany is the only country that meets export potential to the E7. However, Germany’s exports are mostly targeted at the Chinese market. Similarly, the US is the major export hub of the UK.

Michael Vrontamitis, head of trade for Europe and America at Standard Chartered Bank said: “With the UK settling into a slower pace of growth and Brexit on the horizon, UK businesses need to look more widely for growth.

“It is clear that the E7 countries represent multi-billion-dollar trading opportunities for the UK and British businesses searching for export diversification and growth.”

Liam Fox, the international trade secretary frequently emphasised that the focus should be on the Brexit opportunities to shift the focus of trade policy on the rapidly growing economies.

He said: “As an international economic department, we are supporting businesses meet this demand, target overseas markets and succeed on the global stage, so we create more jobs and prosperity in every part of the country.”

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