The UK and Gulf Cooperation Council (GCC) have finalised a free trade agreement after four years of negotiations, creating a framework intended to expand bilateral trade and strengthen investment protections across both blocs.
Annual UK-GCC trade currently stands at more than GBP 53 billion, with UK exports accounting for two-thirds of that figure. The deal is projected to grow bilateral trade by around 20% annually and add GBP 3.7 billion per year to the UK economy. Tariffs worth an estimated GBP 580 million on UK goods exported to the GCC will be eliminated once the pact is fully implemented.
Beyond tariffs, the agreement commits both sides to customs clearance within 48 hours and allows UK firms operating in the Gulf to store and process data outside the region for the first time. Investment protections will also be extended to Saudi Arabia, Kuwait and Qatar, which previously lacked bilateral investment treaties with the UK.
The UK is the first G7 nation to conclude a trade deal with the GCC.
Gulf Economist Staff Writer