Abstract: Following the Second World War, the European powers withdrew from the Middle East but since then have made several attempts to come back to the region as economic and strategic partners. With the advent of the European Union, Europe has become an economic power with global interests. Energy needs, market access and security have been prime motives for the European return to the Middle East. For the EU, which imports more than a quarter of its oil from the Gulf, and whose energy needs are expected to grow, it is imperative to forge close relations with the region. The central theme of this paper is that the EU has not had a coherent approach towards the Gulf region. For various reasons, relations with the Gulf have been conducted on a bilateral basis, and have been kept separate from other EU initiatives like the European Mediterranean Policy (EMP) and the European Neighborhood Policy (ENP). However, there is now a need for the EU to address its critical interests in the Gulf with a more pronounced comprehensive policy.