The United Kingdom and the Gulf Cooperation Council (GCC) are close to finalizing a landmark Free Trade Agreement (FTA) that could add $10.8 billion in two-way trade annually, according to UK government estimates.
Launched in 2022, the deal aims to strengthen economic ties across key sectors like energy, manufacturing, and services. It will also improve market access, reduce tariffs, and enhance investment flows between the UK and GCC member states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
Currently, trade between the UK and GCC is valued at over $72.4 billion, with the UAE alone accounting for £23.4 billion. Officials say the FTA could also boost UK GDP by £3.1 billion and wages by £1.1 billion by 2035.
The agreement aligns with the UK’s post-Brexit push to diversify trade and the Gulf’s ambitions in AI, clean energy, and digital transformation. Negotiations are expected to conclude by the end of 2025, unlocking new opportunities for cross-regional growth.
