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The Euro-Gulf Monitor 16 – 23 December 2025

BY Matthew Robinson

5 Top Points

  1. EU-GCC Economic Dialogue in Brussels: Gulf and EU officials met in Brussels (12 December) for the 14th GCC-EU Economic Dialogue. Delegations led by senior GCC figures, including Bahrain’s Ambassador to the EU Mohammed Ali Behzad and European Commission officials discussed ways to address shared economic challenges, boost sustainable growth and identify new partnership opportunities in trade, investment and clean energy.
  2. Oman-India partnership: Diplomatic engagement between India and Oman deepened this
    week. India’s Commerce Minister Piyush Goyal and Omani Minister Qais bin Mohammed Al Yousef
    met in Muscat at an Oman-India Business Forum.
  3. Sudan peace initiative: Saudi Arabia and the US continued to push for a truce in Sudan,
    with Saudi Crown Prince Mohammed bin Salman and American envoys presenting a three-point
    peace plan to Sudan’s de facto leader Gen. Abdel Fattah al-Burhan.
  4. Major infrastructure deals: Gulf states continued to ink big projects for economic
    diversification. Most notably, Kuwait signed a roughly 4 billion USD contract with China
    Communications Construction to build the new Mubarak Al-Kabeer Port on Bubiyan Island.
  5. Yemen prisoner exchange: A breakthrough was brokered in the Yemen conflict when Oman
    announced that Yemen’s government and the Houthi rebel authorities have agreed to a large-scale
    prisoner swap.

‘Round and About the Gulf’

Al-Fateh Grand Mosque in Bahrain

Kingdom of Bahrain Kingdom of Bahrain-img

Wednesday, 17 December – King Hamad bin Isa Al Khalifa received a written invitation from Saudi Crown Prince Mohammed bin Salman to attend Riyadh Expo 2030. The Saudi Ambassador to Bahrain delivered greetings from King Salman and the Crown Prince, and conveyed best wishes for Bahrain’s continued prosperity. King Hamad praised the historic fraternal ties and expressed strong support for Saudi Arabia’s Expo.

Tuesday, 23 December – Bahrain’s National Cybersecurity Centre announced a partnership with the US AI-cybersecurity firm SandboxAQ to modernise Bahrain’s cyber defences. The collaboration will deploy SandboxAQ’s AQtive Guard platform, an AI-driven encryption and threat-detection system, across over 60 government entities. The aim is to protect critical infrastructure (government networks, utilities and data) against future quantum-era cyber threats and ‘store now, decrypt later’ attacks.

State of Kuwait

State of Kuwait Sultanate of Oman-img

Tuesday, 23 December – Kuwait signed a landmark 4 billion USD engineering contract with China Communications Construction Co. (CCCC) to build the Mubarak Al-Kabeer Port on Bubiyan Island. The agreement was signed by Public Works Minister Noura Al-Mashaan and CCCC’s Chen Zhong. In his address, Prime Minister Sheikh Ahmad Al-Sabah said the port project, part of Kuwait’s Silk City developments, will strengthen the country’s logistics hub status and ‘shape the future growth’ of the economy. The deal is financed by Kuwaiti public funds and is seen as a major step under Kuwait Vision 2035.

Sultanate of Oman Sultanate of Oman-img

Wednesday, 17 December – In Muscat, India’s Commerce Minister Piyush Goyal and Oman’s Commerce Minister Qais Al Yousef co-hosted the Oman-India Business Forum. They noted that India has become Oman’s third-largest trading partner, with Indian investments tripling to circa 5 billion USD since 2020. Both sides lauded their forthcoming Free Trade Agreement, saying it will ‘open significant opportunities’ in textiles, food processing, logistics, renewables and other sectors.

Monday, 22 December – Omani officials inaugurated two major road upgrade projects in the Duqm Special Economic Zone. One project will dualise the link between Duqm town and Duqm Airport, and the other will dualise the road to Ras Markaz. These works improve access to Duqm’s industrial, port and renewable energy areas.

Tuesday, 23 December – Oman announced a breakthrough in Yemen’s conflict, with both sides agreeing to swap thousands of detainees. After 12 days of talks in Muscat (hosted by Oman and mediated by the UN), Yemen’s government and the Houthi rebels set up an exchange of 1,700 and 1,200 prisoners respectively.

qatar-img

State of Qatar State of Qatar-img

Wednesday, 17 December – Qatar and the US held the 7th Qatar-US Strategic Dialogue in Washington, DC. Qatari Minister of State for Foreign Affairs Mohammed bin Abdulaziz Al Khulaifi led the Qatari delegation and met US Under Secretary of State Allison Hooker. The session covered major regional security issues, including Gaza’s humanitarian truce, Syria and Lebanon stability, and Iran’s role, and cooperation on defence and finance. Both sides ‘reaffirmed their defence and security partnership’ and noted plans for further joint projects.

Saudi-arabia-img

Kingdom of Saudi Arabia Kingdom of Saudi Arabia-img

Friday, 19 December – Saudi Arabia, working closely with the US, unveiled a three-point peace plan to Sudan’s ruler Gen. Abdul Fattah al-Burhan. In Jeddah, Prince Mohammed bin Salman and American envoys presented the blueprint, a nationwide ceasefire, safe corridors for humanitarian aid and a rapid transition to civilian government.

Thursday, 17 December – The US Congress approved the repeal of the Caesar Act sanctions on Syria. This move, effective immediately, lifts broad US economic sanctions on Syria, with Saudi-led diplomacy widely cited as a factor.

United Arab Emirates-img

United Arab Emirates United Arab Emirates-img

Saturday, 20 December: UAE Foreign Minister Sheikh Abdullah bin Zayed welcomed US Secretary of State Marco Rubio’s renewed call for an immediate ceasefire in Sudan. In a press statement, Sheikh Abdullah praised Rubio’s emphasis on ‘de-escalation of violence and unimpeded access of humanitarian relief’ to civilians. The UAE reiterated its commitment to international efforts, including the US.-led ‘Quad’ initiative, seeking a civilian-led political solution in Sudan.

EU Corner

Green transition cooperation: The EU and Gulf states continued to deepen climate and investment links. The EU Delegation in Abu Dhabi hosted the 2nd EU-GCC Finance & Investment Forum for the Green Transition (22 December). European Commissioner Dubravka Šuica and an EIB vice-president met UAE officials, including Abdulla Balalaa, Assistant Minister for Water and GCC counterparts to discuss joint projects in renewable energy, water management and climate resilience. Šuica emphasised that water security is central to the Gulf’s green agenda, noting EU support for clean desalination and solar projects. The forum reflected a shared goal, under the forthcoming EU-UAE Strategic Partnership, to finance sustainable infrastructure and advance the UN 2030 climate goals in the Gulf region.

Key Official Visits & Contacts

Wednesday, 17 December – Qatar’s Minister of State Dr. Mohammed Al Khulaifi met US Under Secretary Allison Hooker in Washington for the 7th Strategic Dialogue. The dialogue sessions covered regional security and set the roadmap for bilateral cooperation in 2026.

Thursday, 18 December – Indian Prime Minster Narendra Modi held talks with Oman’s Sultan Haitham bin Tariq in Muscat. Their meeting, attended by senior ministers, marked the signing of a Comprehensive Economic Partnership Agreement (CEPA) and multiple MoUs in energy, education and agriculture. These agreements will significantly increase bilateral investment and institutionalise India-Oman strategic cooperation.

Friday, 19 December – Saudi Crown Prince Mohammed bin Salman and US envoys jointly met Sudan’s General al-Burhan (in Khartoum) to present the new Sudan peace plan. This high-level contact is part of the Jeddah-mediated Jeddah Peace Conference process.

Monday, 22 December – European Commissioner for the Mediterranean Dubravka Šuica led an EU-GCC Green Transition Forum in Abu Dhabi. She and EU and UAE officials discussed financing of water and clean energy projects, underscoring planned EU-UAE strategic partnership talks on climate.

Tuesday, 23 December – Kuwaiti Prime Minister Sheikh Ahmad Al-Sabah attended the signing ceremony of the Mubarak Al-Kabeer Port contract. He joined ministers and a Chinese delegation to finalise the 4 billion USD deal with CCCC, marking one of Kuwait’s biggest infrastructure investments.