RIYADH — The United Kingdom and the Gulf Cooperation Council have concluded negotiations on a major Free Trade Agreement aimed at strengthening trade, investment and economic cooperation between Britain and Gulf states, including Saudi Arabia.
Announced on Tuesday, the agreement marks the first trade deal between the GCC and a G7 country and is expected to create significant opportunities for businesses, investors and service providers across both regions.
The deal covers all six GCC member states — Saudi Arabia, the UAE, Bahrain, Kuwait, Oman and Qatar — and is designed to support open trade, economic growth and long-term investment partnerships.
Trade in goods and services between Saudi Arabia and the UK currently stands at £13.8 billion ($18.5 billion), while the agreement is projected to increase overall UK-GCC bilateral trade by nearly 20%, adding an estimated £15.5 billion annually.
The agreement also comes amid heightened geopolitical tensions in the Gulf following the conflict involving Iran, with Britain highlighting its close coordination with Gulf partners on regional security and long-term stability.
According to the announcement, the agreement will provide greater certainty for Saudi investors and reinforce Britain’s position as a major destination for Gulf investment.
Saudi investors including Public Investment Fund, Alfanar and Aramco Ventures are already investing heavily across sectors such as infrastructure, clean energy and artificial intelligence in the UK.
The deal will also simplify customs procedures and eliminate tariffs on all current Saudi exports to Britain once the agreement enters into force.
British exports of food and beverages to Saudi Arabia, currently valued at £184 million annually, are also expected to benefit through easier market access and lower costs for products including smoked salmon, cheddar cheese and chocolates.
In the services sector, the agreement includes commitments supporting financial data flows and improved market access for sectors such as fintech, banking and insurance.
The two sides also agreed on frameworks for recognizing professional qualifications, making it easier for engineers, lawyers, accountants and other professionals to work across borders.
The deal additionally includes streamlined visa procedures and some of the GCC’s longest business stay commitments to date for professionals traveling between Saudi Arabia and the UK.
UK Secretary of State for Business and Trade Peter Kyle described the agreement as “a significant step forward” in relations between the two sides.
“By working together, we are opening new opportunities for trade, investment, and innovation that will benefit businesses and communities across our nations,” Kyle said.
Source: Saudi Gazette