UK-Gulf trade deal opens new era of economic cooperation

The newly signed UK-GCC trade deal is projected to add £3.7 billion yearly to the UK economy and increase wages by an estimated £1.9 billion in the long run. The UK has made history as the first G7 member to establish a trade partnership with the GCC, deepening collaboration with one of the world’s key economic regions.

Tariffs on food exports, medical equipment, and advanced manufacturing will be removed under the deal, alongside pioneering GCC commitments on cross-border data flow. The UK could see a boost to growth and higher wages for decades to come after becoming the first G7 country to secure a trade deal with the Gulf Cooperation Council (GCC) today – strengthening our economic partnership with the region, supporting jobs in the long term, and bolstering domestic resilience.

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 has finalized its landmark free trade agreement with the Gulf Cooperation Council, delivering a package of measures designed to reduce costs and open doors for British exporters.

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The deal eliminates an estimated £580 million in annual tariffs on UK goods, with £360 million removed immediately on day one. Food and drink producers stand to benefit significantly, with cereals, cheddar cheese, chocolate, and butter among products set to become tariff-free; a notable opportunity given the GCC imports over 80% of its food.

For services firms, which represent around 80% of the British economy; the agreement guarantees market access and simplifies visa processes for the 400,000-plus professionals who travel annually to the Middle East. A landmark data provision will also allow UK companies to store and process data outside the Gulf region for the first time, cutting the cost of doing business there.

Customs procedures get a significant upgrade too, with clearance benchmarked at 48 hours and perishable goods to clear in under six hours.
Business and Trade Secretary Peter Kyle called it “a modern and ambitious trade deal,” while HSBC Group CEO Georges Elhedery said the agreement would help businesses “connect, invest and grow” across both regions.

Combined with the recently signed India deal, the two agreements are projected to add over £8 billion annually to UK GDP in the long run.