UK’s Israeli Settlement Ban: A Major Push for Saudi Arabia’s Two-State Strategy

Saudi Arabia, alongside 7 Arab and Islamic nations, has welcomed a historic decision by the UK and other European allies, banning imports from illegal Israeli settlements in the Occupied Palestinian Territory.

The European move marks a major policy shift from passive critique to Western economic accountability, advancing Saudi Arabia’s diplomatic push for a sovereign Palestinian state anchored in the implementation of the two-state solution.

Eight Nations Welcoming the Move

Driving the News: In a joint statement on Wednesday, September 9, 2026, the Foreign Ministers of Saudi Arabia, Türkiye, Egypt, Indonesia, Jordan, Pakistan, Qatar, and the UAE welcomed the British government’s decision to ban the import of goods from illegal Israeli settlements in the Occupied Palestinian Territory and to impose restrictions on services linked to such settlements.

The Big Picture: The UK was joined by 11 other nations in confirming their intention to introduce national and/or support European restrictions on trade in goods with settlements which are illegal under international law, or that they are actively considering these and other measures, in accordance with their national procedures.

Looking Ahead: The statement of the Arab and Islamic Foreign Ministers hoped that the UK-led move will help mobilize the international community to take similar actions, in line with international law, to bring an end to activities that support or sustain illegal Israeli settlements in the Occupied Palestinian Territory.

Legal Basis:

The Foreign Ministers of the eight Arab and Islamic countries cited international legal anchors of the UK move:

• UN Security Council Resolution 2334 (2016) on settlement illegality.
• July 2024 ICJ Advisory Opinion obligating states to refuse aid or recognition to the unlawful occupation.

The Backstory: In August 2026, Israel moved forward with the E1 settlement project, which aims to divide the occupied West Bank into north and south, severing the territorial contiguity of a future Palestinian state. It will also separate East Jerusalem from the rest of the West Bank.

In response, Saudi Arabia, Jordan, the UAE, Indonesia, Pakistan, Türkiye, Qatar, and Egypt issued a joint statement strongly condemning Israel’s illegal settlement expansion in the Occupied Palestinian Territory and denouncing escalating violence against Palestinian civilians and property.

Historical Policy Shift

State of Play: On Tuesday, September 8, 2026, the UK announced sweeping sanctions on trade with illegal Israeli settlements in the occupied West Bank, accusing settlers of committing “ethnic cleansing” against Palestinians living there.

In a joint statement, British Prime Minister Andy Burnham, French President Emmanuel Macron and Canadian Prime Minister Mark Carney said that their countries will take steps to ban the import of goods from settlements and enforce targeted measures against settlements and those who facilitate them or profit from them.

Simultaneously, a coalition of 12 Western nations, including the UK, France, Canada, Denmark, Finland, Iceland, Ireland, Norway, Poland, Portugal, Spain, and Sweden, issued a joint statement saying they will follow suit.

In His Words: “The British government agrees that there is ethnic cleansing of Palestinians in areas of the West Bank, perpetrated by settler terrorists. And all too often the Israeli government has turned a blind eye to this and worse, members of it have made statements and taken actions to support the forced displacement of Palestinians.” – Ed Miliband, British Foreign Secretary, told the UK Parliament.

The Backlash: The import ban triggered a sharp diplomatic retaliation from Israel, which announced counter-measures against the UK including closing the British consulate in East Jerusalem.

Support for the Two-State Solution

Between the Lines: Saudi Arabia and the other 7 Arab and Islamic nations hailed the UK and Western countries’ statement on the two-state solution. They reaffirmed that the only viable path to a just and lasting peace is the establishment of an independent, sovereign, contiguous, and viable Palestinian State, along the 1967 borders, with East Jerusalem as its capital, in accordance with international law and the relevant UN resolutions.

The Foreign Ministers of these countries also renewed their call for Israel to revoke all measures related to settlement activities and other measures aimed at altering the geographic and demographic character of the Occupied Palestinian Territory.

Zoom In: The joint statement of the UK, Canada, France, and other 9 European allies reiterated their firm support for the two-state solution, expressing readiness to take action in pursuit of a just and lasting peace, based on the principles enshrined in the New York Declaration. Hence, they voiced their opposition to the annexation of Palestinian land and forcible displacement of the Palestinian population.

Worth a Mention: The leaders of the UK, France, and Canada stated that they will co-chair a meeting at the UN General Assembly later in September to advance their efforts and pursue peace.

The Gaza Conflict

The Context: The statement of the Arab and Islamic Foreign Ministers addressed the situation in the Gaza Strip, affirming that it is an integral part of the Occupied Palestinian Territory.

They also called for the full and immediate implementation of US President Donald Trump’s Comprehensive Peace Plan for Gaza to ensure security and stability, address the humanitarian situation, facilitate reconstruction and recovery, and lay the foundations for lasting peace.

Alignment with Saudi Diplomatic Push

The Deep Dive: For decades, Saudi Arabia has been a steadfast supporter of Palestinian rights, most notably the establishment of an independent and sovereign Palestinian State along the 1967 borders (comprising the West Bank, East Jerusalem, and the Gaza Strip), with East Jerusalem as its capital.

To this end, the Kingdom launched several initiatives to resolve the longstanding Palestinian-Israeli conflict and promote regional peace and stability.

• March 2002:Launched the Arab Peace Initiative which called for the normalization of relations between Arab states and Israel in exchange for a complete Israeli withdrawal from territories occupied in 1967, a just solution for Palestinian refugees, and establishment of an independent Palestinian State with East Jerusalem as its capital.
• September 2024: Launched the Global Alliance for the Implementation of the Two-State Solution, in partnership with Norway and the European Union (EU).
• July and September 2025: Co-chaired the High-Level International Conference for the Implementation of the Two-State Solution with France at the UN Headquarters, yielding the landmark New York Declaration.

The Impact: The Saudi-led Arab Peace Initiative is widely viewed as the cornerstone for peace efforts to resolve the longstanding Palestinian-Israeli conflict. Moreover, Riyadh’s recent efforts to mobilize international support for the two-state solution drove many Western countries, including France, the UK, and Canada, to officially recognize the State of Palestine, while cementing the New York Declaration as the primary international roadmap toward a sovereign Palestinian State.

The Bottom Line: The joint statement by Saudi Arabia and its Arab and Islamic allies underscore a growing diplomatic alignment with major Western capitals to advance the two-state solution.