Rebekah Brooks (former CEO of the UK print business of Rupert Murdoch) kept in touch with the News of the World about Milly Dowler one evening while on holiday in Dubai, the Old Bailey heard.
Dean Keyworth told the court he met Ms Brooks while she was preparing an edition of the News of the World.
Mr Keyworth was with a friend in Dubai when he saw Ms Brooks and Ross Kemp, her partner. The designer said he had seen Ms Brooks at parties organized by Mr Coulson at his home.
Ms Brooks, Mr Coulson and six others have been charged with various offences, including conspiracy to illegally access voicemails, perverting the course of justice, and bribing public officials. In response, the eight accused denied the charges.
Mr Coulson's barrister, Timothy Langdale QC, questioned Mr Keyworth about Mr Coulson's friendship and character.
The court heard that Mr Coulson was a loyal friend who stuck by his friends even after he had become a media figure. Mr Keyworth said that Mr Coulson was very ambitious but he did not think he was ruthless. He always seemed to take a pragmatic approach to things; he wanted to publish good stories in the newspaper.