iranigirl2
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Gulf Arab states such as Saudi Arabia, the United Arab Emirates (UAE) and Qatar, which either oppose the Syrian government or are actively supporting the opposition, are among the UKs top 50 export markets, generating around £10bn of sales for the British economy last year, according to the Office for National Statistics.
But Britains decision not to join a military strike on Syria could add an additional layer of complexity to sensitive trade talks - particularly over key defence contracts - which are already fraught with political tension, according to former diplomats and experts on the region.
Both Saudi Arabia and the UAE have been pushing other Arab countries to endorse a US-led air strike on Syrian President Bashar al-Assads regime.
Sir William Patey, a former UK ambassador to Saudi Arabia, said Britains decision not to intervene could have long-term ramifications for relations and commercial deals.
Its difficult to pin it on a particular contract but from a Saudi point of view, our unwillingness to live up to our brave words would cause them to maybe doubt our reliability as an ally and commit if something much closer to home was to worry the Saudis, said Sir William, who is now a government and international affairs adviser at the influential consultancy, Control Risks.
Its the doubt it sews in the minds of, say, Saudi policy makers and it could have an impact in the longer term.
Its very difficult to put a direct impact on trade in a way that would be clear, the former British diplomat said, but he added: It would clearly have an impact on their thinking.
David Butter, a leading expert on the Middle East and an associate fellow at think-tank Chatham House, said military contracts would be the most vulnerable in the event of a diplomatic fall-out. Previous conflicts in the region where the UK has taken a leading role such as the Gulf war have been followed by big ticket defense deals.
For the UK, these contracts are a very large proportion of trade with Saudi Arabia in the first place, Mr Butter said.
I would expect there to be some nervousness among the British business community with interests in Saudi Arabia.
Mr Butter raised the prospect of rival French companies using President François Hollandes support for intervention in Syria to their advantage in trade negotiations in the Gulf.
Typically there has been this competition between the British and French for the crumbs in the Saudi market that are left over after the American deals have been done, Mr Butter said.
One would expect the French to be quite commercially aggressive.
Companies such as defence giant BAE Systems, which generates about 14pc of its sales from Saudi Arabia, are awaiting the outcome of negotiations in the Gulf.
The UK defence contractor said last month that there were ongoing delays in protracted talks with Saudi Arabia over an order for 72 Typhoon fighter jets. The company is also hopeful of an order from the UAE for 60 jets.
Matthew Smith, director general of the Middle East Association, which promotes trade and investment with the region, said large export contracts, particularly in defence, always have political overtones. The Syria situation could add another layer of complexity to negotiations, he said.
Defence contracts in places like Saudi have no need for Commons votes for them to be fraught with difficulty, Mr Smith said.
At the most basic level I wouldnt anticipate it is going to have a material effect but its another layer of complexity to take into consideration when the situation is already complex.
A spokesman for UK Trade and Investment (UKTI) would not comment. BAE Systems declined to comment.
Saudi Arabia has long called for a robust international response to the Syrian crisis. Reports on the weekend suggested the UAE was also pressing hard for the Arab League to endorse air strikes on Syria.
UK exporters face Syria vote fallout - Telegraph
But Britains decision not to join a military strike on Syria could add an additional layer of complexity to sensitive trade talks - particularly over key defence contracts - which are already fraught with political tension, according to former diplomats and experts on the region.
Both Saudi Arabia and the UAE have been pushing other Arab countries to endorse a US-led air strike on Syrian President Bashar al-Assads regime.
Sir William Patey, a former UK ambassador to Saudi Arabia, said Britains decision not to intervene could have long-term ramifications for relations and commercial deals.
Its difficult to pin it on a particular contract but from a Saudi point of view, our unwillingness to live up to our brave words would cause them to maybe doubt our reliability as an ally and commit if something much closer to home was to worry the Saudis, said Sir William, who is now a government and international affairs adviser at the influential consultancy, Control Risks.
Its the doubt it sews in the minds of, say, Saudi policy makers and it could have an impact in the longer term.
Its very difficult to put a direct impact on trade in a way that would be clear, the former British diplomat said, but he added: It would clearly have an impact on their thinking.
David Butter, a leading expert on the Middle East and an associate fellow at think-tank Chatham House, said military contracts would be the most vulnerable in the event of a diplomatic fall-out. Previous conflicts in the region where the UK has taken a leading role such as the Gulf war have been followed by big ticket defense deals.
For the UK, these contracts are a very large proportion of trade with Saudi Arabia in the first place, Mr Butter said.
I would expect there to be some nervousness among the British business community with interests in Saudi Arabia.
Mr Butter raised the prospect of rival French companies using President François Hollandes support for intervention in Syria to their advantage in trade negotiations in the Gulf.
Typically there has been this competition between the British and French for the crumbs in the Saudi market that are left over after the American deals have been done, Mr Butter said.
One would expect the French to be quite commercially aggressive.
Companies such as defence giant BAE Systems, which generates about 14pc of its sales from Saudi Arabia, are awaiting the outcome of negotiations in the Gulf.
The UK defence contractor said last month that there were ongoing delays in protracted talks with Saudi Arabia over an order for 72 Typhoon fighter jets. The company is also hopeful of an order from the UAE for 60 jets.
Matthew Smith, director general of the Middle East Association, which promotes trade and investment with the region, said large export contracts, particularly in defence, always have political overtones. The Syria situation could add another layer of complexity to negotiations, he said.
Defence contracts in places like Saudi have no need for Commons votes for them to be fraught with difficulty, Mr Smith said.
At the most basic level I wouldnt anticipate it is going to have a material effect but its another layer of complexity to take into consideration when the situation is already complex.
A spokesman for UK Trade and Investment (UKTI) would not comment. BAE Systems declined to comment.
Saudi Arabia has long called for a robust international response to the Syrian crisis. Reports on the weekend suggested the UAE was also pressing hard for the Arab League to endorse air strikes on Syria.
UK exporters face Syria vote fallout - Telegraph
