Germany... a 'Turning Point' towards the Gulf

Saudi Foreign Minister Prince Faisal bin Farhan during his meeting with his German counterpart Annalena Baerbock in 2019. (Saudi Foreign Ministry)
Saudi Foreign Minister Prince Faisal bin Farhan during his meeting with his German counterpart Annalena Baerbock in 2019. (Saudi Foreign Ministry)
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Germany... a 'Turning Point' towards the Gulf

Saudi Foreign Minister Prince Faisal bin Farhan during his meeting with his German counterpart Annalena Baerbock in 2019. (Saudi Foreign Ministry)
Saudi Foreign Minister Prince Faisal bin Farhan during his meeting with his German counterpart Annalena Baerbock in 2019. (Saudi Foreign Ministry)

The Ukrainian war awakened Germany from its long slumber. After the end of World War II, the country began to reduce its army to its lowest capabilities.

The war has also shaken the European country, which had been taking a long break, following the rupture between its eastern and western territories during World War II, and its rapprochement with Russia, when former Soviet leader Mikhail Gorbachev helped it to regain unity.

As part of this rapprochement, Germany increased its dependence on Russian gas, disregarding repeated warnings that Moscow might exploit this economic entente to manipulate it politically.

Since the outbreak of war in Ukraine in February 2022, the word, “Zeitenwende” has become the most circulated in Germany. It means, “the turning point”, as Berlin found itself forced to rethink its security and energy policies.

Germany embarked on unprecedented defense reforms and began searching for new sources of energy to stop its reliance on Russian gas. This quest led the country to the Gulf. Although the two sides exchange distinguished trade relations, they have many diverging political views, including the stance on Iran.

German Chancellor Olaf Scholz’s expected visit to Saudi Arabia, the UAE and Qatar at the end of next week may be evidence of the importance that the country lays on developing this relationship. This visit can constitute a “turning point” at the political level.

“We Didn’t Understand the Iranian Threat”

In light of all these geopolitical changes, Berlin hosted for the second time a Gulf-German meeting, organized by the Arab-German Friendship Association and the Federal Academy of Security Policy.

The meeting, which was held initially in 2019, was aimed at launching a direct dialogue between the two parties, according to the organizers.

This year, although many developments preceded the meeting, the problems in the Gulf-German relations that were tackled for the first time three years ago have not changed. Germany still refuses to export arms to Saudi Arabia under the pretext of the war in Yemen, and its positions on Iran are still the same.

Nonetheless, there have been some serious turning points. Christian Buck, the German diplomat who heads the political department for the Middle East in the German Federal Foreign Office, said that his country was now reviewing its arms policy, and admitted that the Ukraine war made “Germany realize that weapons play a very important role in defense and that this point has been underestimated” by his country in the past.

The former director of the Federal Intelligence Agency, August Hanning, recently said that the government in Yemen must be supported, blaming Iran’s interference in the country.

He added that it was necessary not only to support the Yemeni government, but also to back Saudi Arabia, which supports that government as well.

Similar stances were expressed by the Greens Party, which holds key positions in the government. The party’s deputy in the European Parliament, Hannah Neumann, admitted that Germany and Europe have been silent for a long time about condemning the Houthi attacks on Saudi Arabia. She went on to say that her country must accept some accusations by the Gulf States, “because we did not understand the Iranian threat in the region.”

A new strategy

However, it was clear in the discussions that the biggest disagreement that still constitutes an obstacle to the development of German-Gulf relations is Berlin’s approach to Iran.

The guest of honor in the meeting, Prince Turki Al-Faisal bin Abdulaziz, Chairman of the Board of Directors of the King Faisal Center for Research and Islamic Studies, did not hesitate to criticize the Europeans.

He noted that the Gulf and European countries “did not find common ground about the threats facing the region due to Iran’s nuclear program and its fueling of insecurity in the Middle East.”

He added that no practical steps have been taken, “although there is an understanding on the part of the European Union for the region’s problems.”

However, Prince Turki spoke of a “turning point” imposed by the war in Ukraine on Gulf-European relations, “which helped Europe understand the importance of the stability of our region and the global energy market.”

Last May, the European Union adopted a “new strategic partnership with the Gulf”, which aims to expand and deepen cooperation between the two parties, according to a statement by the European Commission.

EU Foreign Policy Chief Josep Borrell said at the time that in light of the insecurity and the presence of major challenges facing the existing international order and exacerbated by the Russian war on Ukraine, the European Union and the Gulf States would benefit from a larger and more strategic partnership in a number of key areas.

The strategic paper detailed that strengthening cooperation aimed to increase imports of liquefied gas to Europe, stabilize global oil prices, and cooperate in hydrogen and alternative energy.

The document stated that positively ending the nuclear negotiations in Vienna with Iran would pave the way for a full return to the implementation of the agreement, and could constitute a ground for additional efforts to reduce tension and build confidence in the region.

But since then, the nuclear negotiations with Iran have entered a stalemate, due to Iran’s insistence on imposing additional conditions.

Examining the priorities

The approach to the Iranian file constitutes an obstacle to the development of Gulf-European relations.

Prince Turki was keen to remind the German attendees that the signing of the basic nuclear agreement with Iran in 2015 was supposed to be followed by talks with it about its role in supporting militias in the region.

He called on the Europeans to confront Iran’s destabilizing role in the region and not only work to prevent it from acquiring a nuclear weapon.

However, Prince Turki saw that the new European strategy could form a basis for deeper relations between the two parties, to be followed by a “constructive and fruitful dialogue.”
Although the representative of the Federal Foreign Office at the meeting admitted that Germany was now reconsidering and rearranging its priorities, he maintained cautious diplomatic talk about Iran, reiterating the need not to allow new nuclear states from emerging.

Thus, Germany finds itself unable to make a decision or find an effective strategy to deal with Iran’s interference in the region. This is precisely what has prevented it so far from deepening its defense and security relationship with the Gulf States. However, it may now want to seize the opportunity, in light of its “turning point” strategy, which was imposed on it by the war in Ukraine.



British Trade Minister to Asharq Al-Awsat: UK-GCC Free Trade Deal a ‘Landmark’ Moment

British Minister of State for Trade Chris Bryant and Gulf Cooperation Council Secretary-General Jasem AlBudaiwi at the signing of the UK-GCC Free Trade Agreement ceremony. (GCC)
British Minister of State for Trade Chris Bryant and Gulf Cooperation Council Secretary-General Jasem AlBudaiwi at the signing of the UK-GCC Free Trade Agreement ceremony. (GCC)
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British Trade Minister to Asharq Al-Awsat: UK-GCC Free Trade Deal a ‘Landmark’ Moment

British Minister of State for Trade Chris Bryant and Gulf Cooperation Council Secretary-General Jasem AlBudaiwi at the signing of the UK-GCC Free Trade Agreement ceremony. (GCC)
British Minister of State for Trade Chris Bryant and Gulf Cooperation Council Secretary-General Jasem AlBudaiwi at the signing of the UK-GCC Free Trade Agreement ceremony. (GCC)

British Minister of State for Trade Chris Bryant has described the free trade agreement between the United Kingdom and the Gulf Cooperation Council as a “landmark” deal, not only because of its economic value, but because it marks the first agreement of its kind between the GCC and a G7 country.

In an interview with Asharq Al-Awsat, Bryant said the agreement could enter into force “in maybe a year, 14 months maybe at most” after signature. London, he said, hopes to sign the agreement in September or October, once the legal review of the text has been completed.

Bryant said the deal would generate “around £3.7 billion” in additional trade for the UK economy, with “similar numbers for the Gulf.” He added that the agreement carried symbolic importance at a sensitive regional moment, following the war with Iran and the “completely appalling attacks from Iran” on Gulf allies.

The minister also praised the scope of the agreement, saying it went beyond cutting tariffs to cover services, the digital economy, artificial intelligence and measures to make it easier for companies on both sides to do business.

Signature expected in the autumn

Bryant said the two sides had so far concluded negotiations, agreed the key elements of the agreement and, in this case, “nearly all the text.”

“What we’ve done so far is we’ve concluded negotiations,” he said. “Now, we have to do what’s known as legal scrub. That will take a while before signature. I hope we’ll be able to do that in September or October.”

He pointed to the UK’s agreement with India, whose entry into force was announced less than a year after it was signed, as an indication of the timetable London hopes to follow with the Gulf deal.

“So I hope that in maybe a year, 14 months maybe at most, we would have entry into force of the deal with the Gulf,” he said.

Services at the heart of the partnership

Asked what distinguishes the UK from other Gulf partners, including the United States, China and the European Union, Bryant pointed to services.

He said Britain’s strengths in financial services, legal services, architecture, construction, creative industries, fintech and life sciences offered major opportunities for deeper cooperation with Gulf economies as they diversify away from hydrocarbons.

“We’re phenomenally good as a financial services center. Everybody knows that,” he said, adding that this was one reason why many Gulf economies were invested in the UK, listed on the London Stock Exchange, or had expanded their presence in the British economy.

Bryant also highlighted legal services as a central part of the UK offer, saying that “the rule of law is a very strong concept in British identity.” He referred to recent developments in Saudi Arabia, where British legal firms are now able to operate more easily.

The minister also pointed to advertising and creative services as another major British strength. He said UK exports in advertising services reached £19.4 billion last year, making Britain the second-largest advertising exporter in the world.

“Lots of people in the Gulf listen to our music, watch our films as well,” he said, adding that the wider services sector, together with creative tech, fintech and life sciences, offered significant scope for the UK-Gulf relationship to grow.

Tariff cuts on goods

Asked whether the real value of the free trade agreement lay more in services than in goods, Bryant said goods remained an important part of the deal.

He said tariffs would come down on 93 percent of UK goods entering the Gulf, with many of those reductions taking effect when the agreement enters into force.

“That will make a dramatic difference,” he said, adding that it would make foodstuffs and some British goods sent to the Gulf cheaper for consumers.

Bryant also said the agreement included a good deal on automotive exports and would save “several hundred million pounds” in tariffs every year.

“That’s really good for British businesses, but I think it’s also good for Gulf consumers,” he said.

Making business easier

Beyond goods and services, Bryant said the agreement would make it “so much easier” for British companies to operate in the GCC and for GCC-based companies to operate in the UK.

He said trade barriers were often understood through tariffs, because they were the most obvious, but other obstacles could be just as important.

“There are lots of other barriers like customs processes, paperwork that you need, licenses that you need, or data localization,” he said. “All of those kinds of issues can be just as important.”

Bryant said he was pleased that the GCC deal covered many of these issues, making it easier to reduce obstacles to trade and investment on both sides.

Artificial intelligence and the digital economy

On artificial intelligence, Bryant told Asharq Al-Awsat the agreement contains a dedicated section on the digital economy, reflecting the growing importance of digital trade to the future of the UK-Gulf relationship.

Most GCC countries are investing heavily in data centers, developing large language models and integrating AI into their wider economies. Bryant said the agreement responded to this shift by including commitments designed to support digital business.

“One of the commitments is a permanent commitment on both sides that we would not introduce tariffs on digital transmissions,” he explained.

He revealed that the agreement also covers ways to ensure it is easier for people to do business digitally, noting that many services are now delivered digitally.

Bryant described the UK as “probably the leading AI country” in Europe, not only because of data centers, but also because of its creative technology, fintech and other technology sectors that are well placed to benefit from new opportunities.

Education and training

Bryant also highlighted the education relationship between the UK and the Gulf, describing it as “really, really strong.”

He noted that even during the recent Iran war, the regional situation “didn’t impede” progress on the trade agreement.

Bryant stressed that the UK was keen to explore ways to train young people from the Gulf, particularly in sectors linked to economic diversification. He cited Saudi Arabia’s tourism ambitions as an example.

“Saudi Arabia is talking about having 600,000 people that it’s going to need for its tourism industry, which it is really trying to boost as part of that diversification of its economy,” he said.

“I know that we in the UK do some of that training well, and we want to look at ways in which we can expand that in a joint way.”

He also noted that many young Saudis, Emiratis and Bahrainis study either in the UK or on courses in the Gulf that lead to UK qualifications, while many schools in the region use British-based technology to run their operations.

A partnership beyond trade

Bryant said the free trade agreement takes the UK-GCC relationship “to the next level,” while stressing that Britain also maintains important bilateral relationships with individual Gulf states.

“In one sense we have our relationship directly with Kuwait or Oman or Bahrain,” he remarked, adding that the free trade agreement was about the Gulf as a whole.

He pointed to Saudi Arabia as an example of how the partnership extends beyond trade, saying the UK had been discussing how it could contribute to preparations for the Saudi Arabia hosting the FIFA World Cup in 2034.

He said British expertise could be useful in areas such as opening and closing ceremonies, fan zones, ticketing and security.

“When you arrive at a stadium, you want to know that it’s not just the police and the army providing security,” he explained, adding that stewards and event staff also needed to be focused on whether spectators were “going to have a good time.”

“That’s the kind of stuff that we’re really, really good at,” he said.

A decade after Brexit

The interview came as Britain marked 10 years since the Brexit referendum, in which voters chose to leave the European Union.

Bryant said that, as an EU member, the UK did not have the function of negotiating its own trade agreements with other countries, because trade policy was conducted collectively by the European Union.

But he rejected the idea that Britain’s ability to conclude its own trade deals should simply be described as a “Brexit benefit.”

“I don’t see it that way,” he said. “That’s like saying that when you get sacked, you’ve got more time to spend time with your family, even though you would probably prefer to stay in your job.”

Instead, Bryant said Britain was using the moment to “fill in the jigsaw puzzle of free trade around the world.”

He said the UK believed in “free and fair trade”: reducing tariff barriers so countries can prosper through trade, while also ensuring a level playing field.

He cited steel overcapacity as one example of an issue Britain takes seriously in that context.

Bryant said the UK was not focusing only on its relationship with the EU, pointing to trade agreements with India and Korea, negotiations with Türkiye, and the agreement with the Gulf.

He also noted that the EU had now reached an agreement with India, suggesting that it might later “be knocking at the door of the GCC as well.”

Continuity amid political turnover

The interview took place as Britain prepared for its seventh prime minister in a decade, following Keir Starmer’s resignation — a scene that underscored the unprecedented pace of change at 10 Downing Street and raised questions among London’s partners about the continuity of its foreign policy, trade commitments and defense relationships.

Asked about those concerns, Bryant stressed that the agreement was being concluded by the United Kingdom, not by one individual or a passing government.

“It’s the UK that’s doing this deal, not one individual person,” he said. “It’s not about me. It’s about the UK doing a deal with the Gulf Cooperation Council.”

He said that whoever the prime minister is in Britain, the agreement would remain a deal between the United Kingdom and the Gulf.

“You don’t need to worry about that,” he said.

Asked whether he expected to remain in his post in three weeks’ time — the expected timetable for a new prime minister to take office if no challenger emerges to the frontrunner, Andy Burnham — Bryant said the decision was “not up to me,” before adding in Arabic: “Inshallah.”


Saudi Arabia Strongly Condemns Iranian Drone Attacks on Bahrain

A view of the Saudi capital, Riyadh. (SPA file)
A view of the Saudi capital, Riyadh. (SPA file)
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Saudi Arabia Strongly Condemns Iranian Drone Attacks on Bahrain

A view of the Saudi capital, Riyadh. (SPA file)
A view of the Saudi capital, Riyadh. (SPA file)

Saudi Arabia strongly condemned on Saturday the Iranian drone attacks against Bahrain earlier in the day.

In a statement, the Foreign Ministry said that Saudi Arabia stresses its categorical rejection of these attacks as a violation of international law and the Charter of the United Nations.

It reiterates that such violations undermine international efforts to restore security and stability in the region.

The ministry added that Saudi Arabia further renews its solidarity with Bahrain and its full support for all measures it takes to safeguard its sovereignty, security, and stability.


Bahrain Condemns Iran Drone Attack against it, Says Reserves Right to Defend Itself

Bahrain Condemns Iran Drone Attack against it, Says Reserves Right to Defend Itself
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Bahrain Condemns Iran Drone Attack against it, Says Reserves Right to Defend Itself

Bahrain Condemns Iran Drone Attack against it, Says Reserves Right to Defend Itself

Bahrain’s Foreign Ministry condemned on Saturday Iran’s drone attack against the kingdom, saying it was a violation of its sovereignty and international treaties and norms and a threat to its citizens and residents.

Bahrain said Iran launched a drone attack on the kingdom just after Tehran said it targeted American military installations to retaliate for overnight airstrikes.

The ministry held Tehran solely responsible for undermining peace efforts, saying the attack reflects an approach based on destabilizing security and stability in the region.

Bahrain stressed that peace cannot be achieved through threats or the use of force, adding that its unity is stronger than any threat and will not be affected by the continued attacks.

The ministry added that the attack is a “direct challenge” to the international will, pointing out that Iran had pledged, under the Islamabad Memorandum of Understanding signed on June 17, to permanently cease military operations and respect the sovereignty of the countries of the region, considering that the attack reveals its lack of commitment to those pledges.

Bahrain stressed that it retains its right to defend its sovereignty, security, and stability, in line with international law, calling on the United Nations Security Council to fulfill its responsibilities, ensure the implementation of its resolution, and hold the aggressor accountable.