Bilateral relations

The bilateral relationship between Luxembourg and the United Arab Emirates has developed steadily since 1980 into a modern and dynamic partnership founded on diplomacy, finance, innovation and international connectivity. Although geographically distant and different in sizes, both countries share important similarities: open economies, strategic locations, strong international outlooks, and ambitions to serve as gateways – Luxembourg to Europe, and the United Arab Emirates to the Gulf, Asia and Africa.

Over time, cooperation has evolved beyond formal diplomatic ties into concrete partnerships in trade, aviation, space policy, finance and investment. Today, the relationship is characterised by regular official exchanges, business delegations, trade fairs, and a shared commitment to future-oriented sectors.

During the regional conflict of 2026, Luxembourg continues to demonstrate its solidarity with the United Arab Emirates by supporting UAE-led initiatives in international organisations aimed at promoting de-escalation, humanitarian assistance, and regional stability. Luxembourg has also facilitated practical support to relevant governmental structures, reflecting the trust, resilience and close cooperation that underpin the bilateral partnership.

1.      Diplomatic relations

Diplomatic relations between Luxembourg and the United Arab Emirates were officially established on 3 May 1980, marking more than four decades of close and constructive ties. Bilateral relations expanded significantly in the early 2000s, as the UAE emerged as a major global economic hub and Luxembourg strengthened its engagement beyond Europe.

In 2005, Luxembourg further deepened relations through the establishment of the Luxembourg Trade and Investment Office (LTIO) in Abu Dhabi. A major milestone followed on 20 November 2011, when Luxembourg officially inaugurated its Embassy in Abu Dhabi. This was Luxembourg’s first embassy in the Arab world, underlining the strategic importance attached to the UAE. Located on the 62^nd and 63^rd floors of Nation Towers on Corniche Road, it remains the highest Luxembourg embassy in the world.

The opening ceremony was attended by:

• H.H. Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs of the UAE
• H.R.H. Crown Prince Guillaume of Luxembourg (now H.R.H. Grand Duke Guillaume V since 3 October 2025)
• Jean Asselborn, Deputy Prime Minister and Minister of Foreign Affairs
• H.E. Sheikha Lubna Al Qasimi, Minister of Foreign Trade of the UAE
• Jeannot Krecké, Minister of the Economy and Foreign Trade of Luxembourg

Luxembourg is also accredited to the International Renewable Energy Agency (IRENA) and covers Kuwait through its Embassy in Abu Dhabi.

The United Arab Emirates covers Luxembourg through its Embassy in Brussels.

2.       Economic, trade and financial relations

The Luxembourg Trade and Investment Office (LTIO), integrated within the Embassy of Luxembourg, covers the Embassy’s economic and trade promotion activities in the United Arab Emirates. It supports companies from both countries in developing business opportunities and serves as the main point of contact for enterprises seeking to establish or expand their presence in Luxembourg or in the Gulf region.

Trade in goods between Luxembourg and the UAE remains moderate in volume but diversified and concentrated in high value‑added sectors. Luxembourg’s exports mainly include machinery, industrial equipment, specialised steel, and other advanced manufactured products, while the UAE serves an important platform for reaching neighbouring markets. In turn, Emirati companies benefit from Luxembourg’s integration into European value chains and its role as a gateway to the European Single Market.

Services form the core of bilateral economic relations. Financial services, Islamic finance, asset management, green finance, wealth management and fintech are key areas of cooperation. Emirati sovereign wealth funds maintain investment structures in Luxembourg and increasingly rely on transparent, onshore European vehicles with strong regulatory substance, further reinforcing Luxembourg’s position as a trusted international financial centre.

Approximately twenty Luxembourg‑related companies are active in the UAE through subsidiaries, branches or representative offices. They operate in sectors such as finance and wealth management, logistics and air cargo, space and satellite communications, ICT and fintech, and industrial technologies. The UAE serves as a regional hub for Luxembourg companies expanding into the GCC and beyond, while Luxembourg provides Emirati partners with a stable and predictable European platform for long‑term investment.

Cooperation is particularly strong in several strategic sectors of common interest, including financial services and fintech, space and satellite applications, innovation and artificial intelligence, cybersecurity, data governance, logistics and connectivity, as well as sustainable finance and green technologies. These areas align closely with the UAE’s economic diversification agenda and Luxembourg’s ambition to remain a leading European centre for sustainable and innovative finance.

3.      Bilateral agreements

Luxembourg and the United Arab Emirates have concluded several important bilateral agreements, notably in the economic and financial fields. These instruments provide legal certainty, facilitate investment flows, strengthen connectivity, and promote institutional cooperation. Key agreements include :

• Agreement for the avoidance of double taxation (2009, updated 2014)
• Air services agreement (2011)
• Cooperation in Islamic banking and finance (2014)
• Several financial regulatory cooperation arrangements
• Space cooperation agreement (2017)
• Memorandum on Political consultations (2019)
• Investment promotion and protection agreements

4.      Expo 2020 Dubai

Luxembourg’s participation in Expo 2020 Dubai, held from October 2021 to March 2022, represented a major milestone in public diplomacy and significantly enhanced the country’s visibility in the United Arab Emirates and across the wider region.

Luxembourg was notably the first country to officially sign the participation contract for Expo 2020 Dubai in October 2017, demonstrating early confidence in the project and strong support for the UAE’s global initiative. As a result, Luxembourg’s national pavilion benefited from a prime location near the main entrance area of the Expo site, contributing to strong visitor traffic and excellent visibility throughout the event.

Luxembourg was also the first foreign nation to break ground for its pavilion in April 2018, in the presence of Deputy Prime Minister Etienne Schneider, Commissioner General Maggy Nagel, Ambassador Elisabeth Cardoso, and Expo 2020 Dubai Bureau Executive Director Najeeb Mohammed Al-Ali.

Through its pavilion, Luxembourg showcased:

• Sustainability and the circular economy
• Digital innovation
• Space and future technologies
• Tourism and cultural identity
• Investment and business opportunities

with the aim of deepening bilateral ties and creating lasting opportunities for cooperation in business, innovation, tourism and cultural exchange.