The Gulf Cooperation Council (GCC) and the UK on Wednesday signed a Free Trade Agreement (FTA), concluding four years of negotiations, the British government announced in a statement.
The “historic” trade deal is projected to inject £3.7 billion ($5 billion) into the UK economy every year and eventually generate £1.9 billion in real wages annually.
With this agreement, the UK becomes the first G7 country to secure a trade deal with the GCC. “The announcement reflects the UK’s solidarity and long-term cooperation with its Gulf partners – Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and UAE – and our shared commitment to open trade, mutual prosperity, and long-term economic success,” the UK statement said.
The deal will eliminate £580 million in export duties, slash customs and visa red tape, and allow cross-border data storage. It will also secure multi-billion-pound investment protections across key food, service, and high-tech industries.
On this occasion, British Prime Minister Keir Starmer hailed the agreement as a “huge win” for UK businesses. “The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment,” he said.
Similarly, GCC Secretary-General Jasim Albudaiwi said in a statement that this move “will contribute to cementing the economic pathways of both regions for generations to come.”
He also added that the agreement aims to achieve tangible, sustainable, and measurable economic benefits for businesses, investors, and citizens across all seven signatory economies.
“The GCC-UK FTA is a comprehensive and modern trade accord spanning trade in goods and services, financial services, digital trade, investment protection, government procurement, telecommunications, and the movement of natural persons.
“Within each of these pillars, substantial and sector-specific commitments have been achieved, reflecting the level of maturity and ambition that characterizes this economic relationship,” Albudaiwi stated.
