India, Jan. 9 -- The United Arab Emirates has restricted government funding for its citizens seeking to study at UK universities, signalling a growing strain in relations between the two countries.

According to a report by The Financial Times, the move is linked to the UK government's long-standing decision not to ban the Islamist Muslim Brotherhood.

In June, the UAE's Ministry of Higher Education published its annual list of approved global universities eligible for government scholarships.

The list included institutions in the United States, Australia, Israel and France, but notably excluded British universities, despite the UK being home to several leading higher-education institutions.

The exclusion is linked to concerns within th...