UK and Gulf Strike Historic Multi-Billion-Pound Trade Deal

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.

This will remove an estimated £580m in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360 million worth of this to be removed on day one of the agreement entering into force - as well as renewed certainty for services firms, making it easier for UK companies to expand and partner in the Gulf, and supporting high quality jobs for years to come.

Many sectors including the food and drink sector are set to benefit from the deal once it enters into force. UK exports of cereals, cheddar cheese, chocolate and butter are just a few of the goods expected to become tariff-free, supporting British industry to grow.

Today’s agreement marks a fifth agreement following major deals with India, the US, the EU and South Korea, as this Government continues to deliver the certainty and stability that businesses need to grow in tough times.

The UK autos industry alongside high street names like Holland & Barrett stand to gain significantly from the deal, through tariff reductions, stronger Intellectual Property protections and simplified customs processes. By reducing the burdens that create barriers to trade, it will give UK businesses a competitive edge.

UK services - which account for around 80% of the British economy and around half of the UK exports to GCC – will gain guaranteed market access under this deal.

In 2024, there were over 400,000 business visits made from the UK to the Middle East so this deal will help British professionals including lawyers, engineers and consultants to travel more easily and stay longer in the region.

Delivering on key business asks, the deal will:

• eliminate duties worth an estimated £580 million a year on UK goods exported to the GCC based on existing trade once fully implemented, giving consumers access to high-quality UK products.
• remove an estimated £360 million duties on day one of the agreement entering into force, reducing costs for UK businesses and supporting supply chains.
• create opportunities for companies producing iconic UK products – from butter and cheddar cheese to biscuits and chocolate - as the GCC imports over 80% of its food.
• include the most ambitious commitments on customs procedures the GCC has ever signed up to, with customs cleared within 48 hours and shipments including perishable goods released in under 6 hours once all requirements are met.
• lock in clarity and certainty for our services exporters, cementing their access to key markets.
• cut red tape for business mobility, ensuring visa processes are fair, efficient, easier to navigate and increasingly digital.
• enable UK companies to store and process data outside the region for the first time ever, which will save businesses money on setting up costly data centres in the Gulf.
• unleash the power of international investment and ensure investments disputes are resolved fairly and transparently. Total bilateral investment was £18 billion in 2024 and supports critical infrastructure projects like Heathrow Airport.
• align with the UK’s Industrial Strategy, supporting key high-growth sectors, including advanced manufacturing, clean energy, and digital technologies.

This agreement, which could increase bilateral trade by 19.8%, is the latest in a series of major international deals the UK has struck with partners around the world to support businesses to export and grow, boost jobs and increase wages.

When combined with the India trade deal, the agreements are estimated to add over £8 billion a year to UK GDP in the long run when compared to 2040 projections.