The agreement with six Gulf nations is expected to expand British exports, strengthen investment ties and improve market access for UK businesses across the region
The United Kingdom has signed a major free trade agreement with the Gulf Co-operation Council (GCC), with the British government projecting the deal could add £3.7 billion to the UK economy and eliminate around £580 million in annual tariffs on exports once fully implemented.
The agreement covers six Gulf nations, Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE and is being described by British officials as one of the country’s most significant post-Brexit trade achievements.
Prime Minister Keir Starmer called the agreement a “huge win for British business”, adding that it would create “more opportunities” and strengthen long-term economic ties with Gulf partners.
Under the deal, tariffs on several British products, including chocolate, butter, medical equipment and luxury vehicles, will be reduced or removed. Officials also highlighted new commitments on the “free flow of data”, aimed at improving digital trade and business operations.
Current trade between the UK and GCC countries stands at nearly £54 billion annually, while officials estimate demand for imports in the Gulf region could double by 2050.
Business leaders welcomed the pact as a major confidence boost for investors and exporters. However, some rights groups criticised the agreement, raising concerns over human rights and labour protections within GCC member states.
The deal marks the first trade agreement between the GCC and a G7 nation.
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