The United Kingdom is actively encouraging businesses to deepen trade and investment ties with Gulf Cooperation Council (GCC) member states ahead of the formal implementation of a recently signed free-trade agreement (FTA) between the two parties. UK Minister of State for Trade Policy Lord Anas Sarwar emphasized during the UK-GCC Strategic Dialogue forum in London that companies should capitalize on opportunities without waiting for the deal’s full ratification and implementation.
Signed in May, the agreement is set to eliminate tariffs on approximately 93 percent of UK exports to the GCC, which currently amounts to about £580 million annually based on existing trade volumes. Sarwar noted that businesses are already effectively engaged in the benefits of the agreement, stating the need to intensify efforts in commercial activities in the interim period before the deal moves through legislative and formal stages. He urged firms on both sides to cultivate partnerships, boost exports, and enhance investment, stressing that the agreement’s success hinges on tangible economic activity rather than solely on political formalities.
Jasem Mohamed Al-Budailwi, Secretary-General of the GCC, reported that trade between the UK and GCC reached $70 billion in 2025, with investment levels exceeding $643 billion in 2024. He highlighted the potential for Gulf exporters to increase sales in sectors including aluminum, fertilizers, and manufactured goods to the UK market. Al-Budailwi underlined that the FTA’s ultimate impact would be gauged by the productivity of investments and the generation of new economic opportunities, particularly through joint ventures and deeper collaboration in areas such as technology transfer and knowledge sharing.
Echoing this viewpoint, Lord Sarwar encouraged stakeholders to explore avenues beyond direct market access, pointing to significant prospects for joint investments in third countries. Kuwait’s Minister of State for Economic Affairs and Investment, Abdulaziz Naser Abdulaziz Al-Marzouq, described the GCC not merely as a market but as a strategic gateway to the Eastern Hemisphere due to its established trading links with Asia.
Raja Al-Marzouqi, the GCC’s chief negotiator for the FTA, projected that the agreement could generate up to $4.7 billion annually in economic benefits for the UK and roughly $5 billion for the Gulf states. He further forecasted a 22 percent increase in bilateral trade by 2050.
From a financial sector perspective, Sir Alastair King, the outgoing Lord Mayor of London, noted that British pension funds with assets around $100 billion could foster collaboration opportunities with Gulf investors on projects in the region and globally. Revolut Chair Martin Gilbert also highlighted the Middle East’s growing significance in international financial services, suggesting a strategic pivot from Asia to the Gulf region in asset management considerations over the past several decades.