Expanding Horizons: The UAE’s Strategic Foray into the Arctic
UAE’s Foreign Minister, Abdullah bin Zayed, on an official visit to Oslo, Norway in 2017. Photo: UAE Ministry of Foreign Affairs
As the Arctic region undergoes environmental and geopolitical transformation, the United Arab Emirates (UAE) has been increasing its engagement with Arctic nations by investing in Arctic-related ventures. This observation is best evident in the DP World’s agreement1) with Rosatom as well as the recent visit by Abu Dhabi’s Crown Prince to Norway.2) This policy brief examines the UAE’s emerging Arctic strategy, analysing how it reflects the broader themes of strategic decision-making, status-seeking, and economic diversification that define the country’s foreign policy. By linking the UAE’s Arctic partnerships with its approach towards tech diplomacy, it highlights how the UAE balances great-power relations, pursues strategic economic opportunities, and seeks to carve out a unique national identity as a modern and progressive Arab state.
Strategic Decision-Making and Status Seeking
Strategic decision-making in the UAE is rooted3) in long-term planning and calculated diversification whereby the UAE leverages both soft and hard power in pursuit of its national interests. Given its geographic position and the challenging neighbourhood it finds itself in, foreign policy decision making in the UAE requires pragmatism and flexibility for Abu Dhabi to be able to cultivate relationships with a diverse range of global partners. This diversification strategy, in turn, is central to mitigating its reliance on any single state for security or economic ties.
The UAE’s status as a logistics and trade/financial hub, coupled with its state-led capitalism, enables it to extend its influence beyond its immediate region. By using financial investments, capacity building, and humanitarian aid as tools of diplomacy,4) the UAE can play a role in regions like the Arctic where it traditionally has had no involvement. A unique blend of financial diplomacy, in other words, positions the UAE as a highly relevant player, not just in the Gulf, but on the global stage.
Also at play is a clear focus on status-seeking5) which is itself closely linked to Abu Dhabi’s efforts at nation branding and the construction of a unique Emirati identity. As a small state in a volatile region, the UAE aims to differentiate6) itself from its neighbours by projecting itself as a modern, technologically advanced, and stable country. As highlighted by Alexander and Mazzucco,7) this desire for recognition has been the driving force behind the UAE’s push into both frontier sectors and regions where no other Arab nation has ventured. Equally important, elevating its status in the international arena enables the UAE to attract both global talent and investment thereby reinforcing its position as a leader in innovation and sustainability in the Arab world. By positioning itself as a forward-thinking and progressive Arab nation, moreover, Emirati rulers can bolster their domestic legitimacy and global reputation, especially among Western powers.
UAE in the Arctic
The UAE’s engagement with the Arctic region must be understood within the context of its broader foreign policy framework whereby it has sought to navigate the shifting dynamics of a multipolar world, particularly in its relations with global powers such as the United States, Russia, and China. Its Arctic strategy is also a natural extension of its status-seeking endeavour. By entering the Arctic, the UAE positions itself as a pioneer in a region traditionally dominated by Russia and Western nations. By becoming an actor in Arctic infrastructure projects, research initiatives, and sustainability efforts, the UAE enhances its global standing and reinforces its image as a proactive and innovative state. Put simply, the Arctic offers the UAE a platform to signal its ambitions and differentiate itself from its neighbours who are, by and large, more regionally focused in their conduct of foreign policy.
However, to develop a comprehensive understanding of the dynamics of the UAE’s Arctic strategy, one needs to look into the country’s technological diplomacy, and the case of G42 in particular, which exemplifies its delicate balancing act between the United States and China. As the nation’s flagship AI company, G42 initially8) maintained strong ties with China, leveraging this relationship to gain early access to advanced technologies. However, growing concerns from the US over security risks tied to Chinese technology forced the UAE to divest9) from China and pivot towards closer collaboration with American tech giants like Microsoft. In managing these relationships, the UAE has adopted a compartmentalisation strategy; that is, aligning with Washington’s interests in critical sectors like AI while maintaining economic cooperation with Beijing in non-sensitive areas.
In the Arctic, the UAE’s approach follows a similar trend of strategic compartmentalisation and great-power management. As a maritime nation and global maritime hub, its interest in the region revolves around investment in critical infrastructure such as ports and shipping routes. Much like its tech strategy, however, the UAE must navigate the complex dynamics between Russia, a significant player in Arctic affairs, and the US.
Russia is a central actor in the Arctic, controlling the Northern Sea Route, a shipping lane that is becoming increasingly viable as Arctic ice melts. The UAE has taken advantage of Russia’s need for foreign investment, particularly as Moscow faces sanctions and economic challenges due to its invasion of Ukraine, and has invested10) in Arctic infrastructure projects with Russia, including logistics, thereby gaining a foothold in the region and its valuable resources. However, the UAE has approached its partnership with Russia cautiously. Much like its tech strategy of balancing ties with China and the US, the UAE is careful not to overcommit to Russia in the Arctic at a time of growing geopolitical tensions.
This also explains why Abu Dhabi has been gradually expanding its relationship with Norway. The latter, a NATO member state with advanced technology and logistics industries, provides an alternative partner in the Arctic, helping the UAE to reduce over-reliance on Russia. This pivot towards Norway mirrors its tech strategy of diversifying partnerships to reduce dependence on any single country. Just as the UAE has engaged with South Korea11) and Israel12) to explore defence technologies outside its traditional US partners, in the Arctic, the UAE’s outreach to Norway allows it to maintain access to Western networks while continuing to engage with Russia commercially. This is not to mention the fact that Abu Dhabi has been interested13) in the Norwegian model of economic development and welfare model for a long time. As a resource rich small state home to the largest sovereign wealth fund in the world, there is a belief amongst Emirati officials that Oslo’s experience in overseeing the emergence of a knowledge based economy provides the best model for the UAE to study, modify and ultimately adopt.14)
Conclusion
As the UAE expands its influence in sectors like green shipping, critical minerals mining, and defence and space projects, its partnerships seem strategically designed to achieve its long-term goals of economic diversification and sustainability. Norway, in particular, has emerged as a key partner in the UAE’s Arctic pursuits, offering cutting-edge technologies and a stable political framework that align with Abu Dhabi’s vision of growth through innovation and sustainability.
However, increased Emirati presence in the Arctic through closer cooperation with Oslo, could also be hampered by concerns with regard to the rights and responsibilities of non-Arctic states in the region’s governance. Norway is likely to welcome UAE investments, particularly in green technologies and sustainable development, but may also approach with caution. There are concerns over how the UAE’s growing involvement intersects with governance issues, potential security risks linked to its financial cooperation with Russia, and broader normative concerns, such as human rights15) and the UAE’s perceived role as a hub for Russian firms seeking to bypass Western sanctions.
Still, Norway’s perception of the UAE might evolve as Abu Dhabi deepens its engagement in sectors traditionally dominated by Arctic states. More broadly, the UAE’s partnerships with both Norway and Russia, and the strategic choices it makes, will have implications for Arctic governance. This presents a critical opportunity for Norway. As a leader in Arctic diplomacy, Norway could play a pivotal role in shaping how non-Arctic states like the UAE are integrated into the region’s future especially as Russia, due to its isolation, has become more willing to cooperate with non-Arctic nations without fully considering the concerns and interests of other Arctic states. As more and more non-Arctic actors want to engage with the Arctic region for both functional and status-seeking purposes, managing how these relations and dynamics evolve will be also crucial for Arctic states.
References