Abu Dhabi’s decision comes amid tensions over the UK’s decision not to proscribe Muslim Brotherhood.
The United Arab Emirates is restricting students from enrolling at UK universities amid fears campuses are being radicalised by Islamist groups.
Abu Dhabi federal funding for state scholarships has been limited for citizens who hope to study in Britain, officials told the Financial Times and the Times.
Those with knowledge of the situation cite tensions over a decision not to proscribe Muslim Brotherhood and concerns about its influence.
The group is proscribed as a terrorist organisation by the UAE, which has long campaigned for European nations including Britain to do the same.
Reform UK leader Nigel Farage has vowed to proscribe the brotherhood if he becomes prime minister.
There are concerns in Britain that the group has infiltrated university campuses, using student organisations to invite Islamist speakers to give lectures that flirt with extremism.
The UAE’s move to restrict its students from studying in the UK could have a major impact on their numbers on campuses, which have doubled between 2017 and 2024, to 8,500.
Why won't the British Government proscribe the muslim brotherhood? It's a further sign that this government cares more about evil muslim organisations than about the safety of its own people.