The financial strength of Gulf allies such as the United Arab Emirates could potentially be drawn on to help fund the UK’s long-delayed Defence Investment Plan, a peer has suggested in the House of Lords, the UK Defence Journal understands.
The suggestion came from the crossbench peer Lord Houghton of Richmond, a former Chief of the Defence Staff, during an oral question on the UK’s military presence in the Gulf, answered by the Minister of State for Defence, Lord Coaker, on 4 June 2026.
Lord Houghton argued that, for all the talk of more money arriving, affordability remained the fundamental constraint on British military capability. “Is it not now a fundamental fact that the biggest constraint on both the generation and deployment of British capability is affordability?” he said. He contrasted the two countries’ positions, pointing to December 2024 figures that he said showed the UK running a 40 billion dollar deficit and the UAE an 80 billion dollar surplus, and asked whether there “might not there be scope for some agreement whereby the generosity of the UAE might help get the defence investment plan over the line this side of the Summer Recess”.
Lord Coaker did not endorse the idea but did not dismiss it either, calling it worth considering. “The noble and gallant Lord makes an interesting point,” he said, noting that a number of peers had raised ideas about how money could be raised for defence. He said the government spent a lot of time talking to friends and partners in the Middle East about how best to support them and provide the capabilities they needed to protect themselves, in this instance from what he described as the indiscriminate response from Iran.
On the plan itself, the minister was firm about the timetable. “The Government are determined to ensure that the defence investment plan is published before 7 July and the Ankara summit,” he said, repeating a commitment the Defence Secretary had given in the House of Commons.
No need to beg from the Arabs. Just cut the welfare bill from scroungers and illegals. And get rid of the quasi Marxists while we are at it.
Agreed. And add the majority of the foreign aid budget to that and you can easily fund DIP. This is why left wing parties find funding for defence so difficult, because their own voter base will prioritise a bloated welfare state.
Agreed!
This has to be the stupidest suggestion I have ever come across, how do theses people get peerages.
What does the UAE UK trade deficit relationship have to do with defence spending?
The UK is not short on the ability to borrow or does he expect the UAE to give money to the UK?, like we are a f**king empire of something 🤦♂️ why would we want to borrow particularly from the UAE instead of international capital markets and why would the UAE want to lend us money unless it was at internationally competitive rates.
The UAE is probably the least friendly gulf state to the UK and incase Lord Houghton hadn’t noticed the UAE is currently brassed and desperately opening up swap line with the USA to generate cash.
If the UK restores investment restrictions on pension accounts like most countries do it has a vast vast amount of capital it can’t access for borrowing. The UK is the largest foreign investor in the USA and 2nd largest foreign holder of US debt.
However just because the UK can borrow doesn’t not mean it should.