The United Kingdom has concluded a landmark trade agreement with the Gulf Cooperation Council (GCC), marking the first such deal between a G7 nation and the six-member bloc that includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates. The pact is projected to add over €4 billion each year to the British economy, according to government estimates.
Under the terms, up to 93% of GCC tariffs on British goods will be phased out, eliminating roughly €670 million in annual duties. Around two-thirds of these reductions will take effect immediately upon the deal's entry into force. British exports ranging from cheese and butter to medical equipment and manufactured goods stand to benefit, while services firms in finance, engineering, legal, and consulting sectors will gain deeper market access.
Political and Business Reactions
British Prime Minister Keir Starmer hailed the agreement as a “huge win” for workers and businesses, reiterating his government’s commitment to drive growth and strengthen the economy. “The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment,” Starmer said.
Peter Kyle, the business and trade secretary, described the deal as sending “a clear signal of confidence” in a period of global uncertainty and trade upheaval. Meanwhile, GCC Secretary General Jasem Mohamed Albudaiwi praised the accord as a successful culmination of intense negotiations and part of a broader vision for “sustainable and promising economic growth” for all parties involved. He noted that deeper strategic partnerships would benefit both the UK and the GCC as Gulf economies accelerate diversification beyond hydrocarbons, investing heavily in logistics and emerging technologies.
Business leaders have welcomed the trade accord, with many viewing the Gulf as a bright spot for investment and expansion. Georges Elhedery, Group CEO of HSBC, said: “The GCC is a region of growing strategic importance and long-term opportunity, and one where HSBC’s heritage runs deep. We see first-hand the opportunity this agreement can unlock and stand ready to help deepen economic ties and support businesses to connect, invest and grow.”
Anthony Houghton, CEO of Holland & Barrett, added: “Fair, reliable and low-barrier trading is essential for businesses to compete and expand internationally with confidence. This agreement provides that stability, supporting companies like ours to grow and serve customers across the region.”
Post-Brexit Trade Strategy
Industry experts see the deal as a clear signal of the UK’s post-Brexit strategy to broaden trade partnerships beyond Europe. According to the Chartered Institute of Export & International Trade, food and drink exports from the UK to the GCC already exceed €720 million annually, with tariffs of between 5% and 25% on products like confectionery and specialty cheeses now set to be reduced or removed.
Marco Forgione, director general of the institute, said the agreement would “unlock substantial new markets for British exporters” in sectors such as advanced manufacturing and renewable energy. He also pointed to opportunities emerging from major Gulf infrastructure projects linked to regional trade diversification efforts, which have been prompted by disruptions in the Strait of Hormuz.
The deal comes at a time when global trade dynamics are shifting, with the EU and US also pursuing new agreements. The UK’s move underscores the growing economic importance of the Gulf region, as London seeks to secure its place in a rapidly evolving global trading system.
