Economic and political relations between Britain and the United Arab Emirates received a further boost in early April with a visit by the UK’s Secretary of State for Business, Enterprise and Regulatory Reform, Lord (Peter) Mandelson.

One highlight of the visit, one of several in recent months by top British officials, was a meeting with the Crown Prince of Abu Dhabi, H.H. Sheikh Mohammed bin Zayed Al Nahyan, while Mandelson also attended a presentation made by the Mubadala Development Company.

During his two day visit, which included meetings in Dubai as well as in Abu Dhabi, Mandelson was accompanied by a delegation of around twenty businessmen from leading British companies.

A Trade, Technical and Economic Memorandum of Understanding, MoU, was signed by Mandelson and his UAE counterpart, Minister of Economy H.E. Sultan bin Saeed Al Mansouri, who noted in comments to the press that the MoU was intended to strengthen economic ties between the two countries and to provide a framework of support for the existing UAE-UK Joint Economic Committee.

Mandelson also met with the Minister of Foreign Trade, H.E. Sheikha Lubna bint Khalid Al Qasimi, who hosted a lunch for the visiting Minister and his delegation.

The UK Minister also met with members of the British Business Groups in Abu Dhabi and Dubai.

Addressing a breakfast meeting of the Abu Dhabi BBG, Mandelson stressed that the UK was well-placed to emerge in a healthy state from the current economic downturn.

One key factor in this, he said, was the underlying strength in depth of the British economy. At the same time, he noted, although it was clear that there was a need to examine the framework of regulation for the global financial sector, it was clear, in his view, that what was required was BETTER regulation, rather than MORE regulation.

Going on to say that Britain was still recognised as a partner of choice because of its continuing economic strengths and its relatively light regulatory framework, Mandelson reaffirmed that the British Government welcomed and encouraged direct inward investment.

The Secretary of State noted that the UAE and the UK already had excellent relations in a variety of fields, as exemplified by the visit of the Prime Minister in November 2008 and by the successful visit of the Lord Mayor of London in February this year. In 2008, he said, UK exports to Abu Dhabi reached £3.7billion while imports from Abu Dhabi amounted to around £1.3billion, both representing a significant increase from the 2007 figures.

It was encouraging, he added, to see that so many major British companies had an active presence in Abu Dhabi, often using the city as a base for their activities throughout the region. He also praised the BBG for the work it undertakes to promote the continuing development of UAE-UK relations.

After completing his visit to Abu Dhabi, Lord Mandelson also visited Dubai, for talks with senior federal and local officials.