Business and financial leaders at the UK-GCC Strategic Dialogue on Wednesday highlighted the need for reforms in payment systems to enhance cross-border trade between the United Kingdom and Gulf Cooperation Council (GCC) countries. They emphasized that fragmented payment infrastructures and inconsistent regulatory frameworks are hindering the full potential of trade and financial transactions in the region.

Esam Alkheshnam, CEO of Kuwait-based payment network KNET, pointed out that even basic transactions face challenges due to variations in regulations between markets. He noted, for example, that differences in the allowed purposes of instant payments between Kuwait, the UK, and other jurisdictions create complexities that slow down or obstruct cross-border payments. Alkheshnam called for regulators from both sides to engage more closely in creating common standards and ensuring smoother financial interoperability.

“Regulators have to actually come forward and work together,” he said, stressing that such coordination is vital to support the successful implementation of the recently signed UK-GCC free trade agreement. Improved integration of payment systems, he added, would benefit not only international trade flows but also remittances and small and medium-sized enterprises (SMEs) that rely on efficient financial services.

Another speaker, Martin Gilbert, chair of the financial technology firm Revolut, highlighted the growing strategic importance of the Gulf region in global financial services. Reflecting on his four decades of experience in asset management, Gilbert observed a shift in focus toward the Middle East as a key market for investment and financial innovation, contrasting it with earlier decades when Asia was often seen as the primary region of interest.

The comments came amid broader efforts to strengthen economic ties between the UK and GCC countries, following their recent free trade agreement. As trade volumes and financial exchanges increase, experts see greater regulatory alignment and technological modernization of payment networks as essential steps to unlock new opportunities across sectors.

Stakeholders suggested that addressing the existing regulatory fragmentation and promoting interoperability could accelerate payment speeds, reduce costs, and enhance overall transparency. Such improvements are expected to bolster confidence among businesses and facilitate smoother cross-border commerce, supporting the wider economic ambitions of both the UK and GCC states.