LONDON — The United Kingdom is encouraging businesses to accelerate trade and investment partnerships with Gulf states ahead of the formal implementation of the UK–Gulf Cooperation Council free-trade agreement, with officials projecting billions of dollars in annual economic benefits from the accord.
Speaking at the UK–GCC Strategic Dialogue forum in London, Minister of State for Trade Policy Lord Anas Sarwar said companies should begin pursuing opportunities immediately rather than waiting for the remaining ratification and implementation stages to conclude.
Signed in May, the agreement will remove tariffs on roughly 93 percent of UK exports to the GCC, representing an estimated £580 million in annual trade benefits based on current volumes.
“Businesses do not need to wait, and we do not need to wait, until we complete the signature process, the legislative process, and move into the implementation phase,” Sarwar said. “You are living the implementation every day. I want us to accelerate that momentum between now and the point of formal implementation, because this partnership matters more than politicians signing agreements and pieces of paper.”
He urged British and Gulf companies to establish relationships, expand exports, and increase investment, stressing that the free-trade agreement’s success will ultimately be measured by the commercial activity it generates.
Beyond the Free-Trade Agreement
GCC Secretary General Jasem Mohamed Al-Budaiwi noted that UK–GCC trade reached $70 billion in 2025, while investment topped $643 billion in 2024. He said the agreement could enable Gulf exporters to expand sales of aluminium, fertilisers, and manufactured goods to the United Kingdom.
“The true value will be measured by productive investment impacts and the economic opportunities it creates,” Al-Budaiwi told attendees, citing potential partnership projects and mutual interest in deepening cooperation across technology, investment, and knowledge transfer.
Sarwar called for both sides to look beyond domestic opportunities, highlighting the “huge, huge” potential of joint investments in third-party countries.
Kuwait’s Minister of State for Economic Affairs and Investment and Acting Minister of Commerce and Industry, Abdulaziz Naser Abdulaziz Al-Marzouq, described the GCC as “more than a market in its own right,” adding, “The Gulf Cooperation Council is a gateway to the Eastern Hemisphere of the world through our established trade links with Asia.”
Raja Al-Marzouqi, the GCC’s chief negotiator, projected that the agreement could generate up to $4.7 billion in annual economic benefits for the UK and some $5 billion for the Gulf bloc, with bilateral trade forecast to grow 22 percent by 2050.
The pact comes as Gulf economies pursue diversification beyond hydrocarbons and seek greater private-sector investment, while Britain works to broaden its international trade relationships.
Outgoing Lord Mayor of London Sir Alastair King said British pension funds, holding approximately $100 billion, could provide Gulf investors with opportunities to partner on projects in the region and beyond.
“It gives GCC-related entities the chance to hunt together around the world with our strong pension funds,” King said. “That is something I am keen to see implemented more widely.”
