Sands of Progress: A New Era Dawns in the Gulf
On 9 July 2025, a historic vote in the European Parliament marked a turning point for EU-UAE bilateral relations. With a decisive tally, the European Union removed the UAE from the list of high-risk countries exposed to money laundering and the financing of terrorism activities (AML/CFT).
The decision follows the Financial Action Task’s Force earlier endorsement of Abu Dhabi’s commitment to financial reform following the recent visit of an EU delegation to the Emirati capital last month.
Financial relief, coupled with the launch of official trade talks between Brussels and Abu Dhabi, signal a growing convergence between both sides on cooperation.
At the heart of this achievement lies the strategic vision of the UAE under His Highness Sheikh Abdullah bin Zayed Al Nahyan, the UAE’s Minister of Foreign Affairs, to lead UAE efforts on foreign policy at a time when the UAE leads the Gulf Cooperation Council’s active engagement with it’s Western partners.
For the EU, however, this move signifies Europe’s commitment to partnerships with values, whilst expanding the bloc’s influence at a time where the Commission’s foreign policy is in flux.
Pillars of the Majlis: The UAE’s Financial Overhaul
The UAE’s removal from the EU’s high-risk list is no accident.
The removal comes as Abu Dhabi launched a sweeping overhaul across its financial and legal systems.
Over the past decade, the UAE has worked tirelessly to shed its earlier reputation as a jurisdiction vulnerable to financial crime. This journey began with recognition that its rapid economic growth, fueled by trade, tourism, and real estate, had attracted unwanted attention: illicit financial flows.
To address this, the UAE introduced a raft of legislative and regulatory reforms. New laws explicitly criminalised money laundering and terrorist financing, in turn closing loopholes that once hindered enforcement.
The UAE Central Bank rolled out stringent oversight mechanisms, mandating enhanced due diligence for banks, exchange houses, and even non-financial sectors, including real estate, precious metals trading, and legal consultancies. Suspicious transaction reporting systems were bolstered, ensuring that red flags could no longer slip through the cracks.
A revitalised Financial Intelligence Unit (FIU) became the backbone of these efforts.
Equipped with advanced analytical tools and expanded authority, the FIU ramped up investigations and prosecutions, addressing past criticisms of lax enforcement. The UAE also forged stronger ties with international bodies, sharing intelligence with counterparts in Europe, North America, and Asia whilst aligning its frameworks with the Basel Committee on Banking Supervision and FATF standards.
These reforms bore fruit when the FATF removed the UAE from its grey list in February 2024: a critical precursor to the EU’s decision.
Sheikh of the Accord: Sheikh Abdullah bin Zayed Al-Nahyan
No account of this triumph could be complete without spotlighting His Highness Sheikh Abdullah bin Zayed Al Nahyan, whose leadership has been instrumental in redefining the UAE’s global image.
According to sources, the Sheikh's experience as a seasoned diplomat is fundamental to the delisting as the Sheikh has a deep understanding of the UAE and EU's priorities on economic and political matters.
On 16 April, 2025, the Sheikh hosted a high-profile delegation from the European Parliament’s Committee on Foreign Affairs in Abu Dhabi. Sheikh Abdullah presented detailed evidence of the nation’s AML/CFT reforms, from legislative updates to enforcement statistics, while also advancing negotiations for a Comprehensive Economic Partnership Agreement with the EU.
The meeting yielded a landmark joint statement, pledging deeper UAE-EU cooperation in judicial training, law enforcement, and cross-border financial crime prevention. Following the meeting, a 4th political dialogue was held in Abu Dhabi last month with H.E. Lana Nusseibeh leading the talks with the EU delegation.
Across these efforts, the UAE is making strong headway as a lynchpin in global financial governance.
The Sheikh’s use of personal diplomacy to blend the UAE’s Bedouin heritage of consensus-building, evoking the majlis where leaders historically resolved disputes, with the EU’s technocratic rigor created a model for cross-cultural collaboration between Emirati and European circles.
Underpinned by Trust
The path to the EU’s 9 July decision was neither swift nor simple.
The process began earlier on the 10 June when the European Commission, buoyed by the FATF’s delisting, formally proposed removing the UAE from its high-risk roster. This was not the first attempt; a similar proposal in 2024 had stalled amid concerns over sanctions evasion tied to gold smuggling and weaknesses in the real estate sector.
Sources close to the Ministry of Economy told DET that the "tipping point" came from the UAE’s sustained progress on financial reform.
The European Parliament’s vote was a litmus test of confidence.
With 369 members opting to uphold the delisting, the outcome underscored Europe’s recognition of the UAE’s reforms, despite criticism from European MEPs for consistent enforcement over time.
H.E. Ahmed bin Ali Sayegh, UAE Minister of State, described the moment as a “vindication of our unwavering commitment to global financial standards” and a testament to the UAE’s role as a “strategic partner to the EU.”
The decision, although not without debate, reflects a maturing relationship founded on mutual respect.
Horizons of Prosperity: A Win-Win Alliance
For the UAE, exiting the EU’s high-risk list is a gateway to new opportunities.
As a nation already renowned for its business-friendly environment, global investors, once wary of compliance risks, are likely to pour capital into sectors like technology, renewable energy, and logistics.
Cross-border banking will become smoother and more secure, with fewer regulatory hurdles slowing transactions.
The delisting also supports the UAE’s Vision 2030 agenda, aiming to diversify the economy beyond oil. By attracting global corporations and fostering innovation, the UAE is poised to solidify its role as the Middle East’s economic powerhouse.
European Foreign Policy: The Gulf and Strategic Autonomy
For Europe, the benefits are equally compelling.
The UAE’s reformed financial system reduces compliance costs for European banks and firms operating in the Gulf, streamlining trade and investment flows.
As CEPA talks progress, European companies from German manufacturers to French luxury brands establish a trusted foothold in a region renowned for its wealth and strategic location.
The UAE becomes a sort of caravanserai, a bustling hub that links Europe to Asia and Africa, at a time when Europe seeks strategic independence from the U.S. and China.
Global Tapestry: Weaving a Safer Financial Future
On a broader scale, the UAE’s reforms strengthen the global financial ecosystem.
Money laundering and terrorist financing, transcend borders, requiring coordinated action. The UAE’s alignment with AML/CFT standards helps plug vulnerabilities, benefiting both Europe and the entire international community.
Yet, the work is far from over. Sustaining these gains will require ongoing vigilance, with UAE-EU collaboration serving as a cornerstone for tackling emerging threats, such as cryptocurrency fraud.
A Flourishing Partnership
The UAE’s delisting from the EU’s high-risk list on 9 July is a story of transformation, diplomacy, and ambition.
Under the leadership of His Highness Sheikh Abdullah bin Zayed Al Nahyan, the UAE is transforming it’s reputation in European circles by aligning its financial systems with the highest international benchmarks, in accordance with it’s strategy of Vision 2030.
For Europe, this partnership is a crucial strand in the EU-27 outreach abroad as the EU seeks to build partnerships abroad, where it has struggled to make inroads on trade with the GCC.
This alliance is more than a transaction, it’s a fusion of cultures and aspirations, proving that even the vastest deserts and continents can find common ground.
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