Estimates suggest that an FTA could increase bilateral trade by 16%, equating to an additional £8.6 billion in trade annually on top of the existing £57.4 billion
The UK government has reaffirmed its commitment to delivering economic growth through an ambitious programme of Free Trade Agreements (FTAs), placing trade at the heart of its strategy to ensure that working people across the country reap the benefits of global partnerships.
Speaking on the progress of ongoing trade negotiations, the Secretary of State for Business and Trade highlighted the importance of advancing talks with key strategic partners, particularly the Gulf Cooperation Council (GCC), as part of the government’s wider economic mission.
In October, a GCC delegation visited London for detailed discussions, followed by a reciprocal visit by a UK delegation to Riyadh in November. These exchanges have been complemented by high-level ministerial engagement.
Formal negotiations with the GCC resumed on 24 September and have since gained momentum through a series of both virtual and in-person meetings.In October, a GCC delegation visited London for detailed discussions, followed by a reciprocal visit by a UK delegation to Riyadh in November. These exchanges have been complemented by high-level ministerial engagement, including talks held in Saudi Arabia during the 2024 Future Investment Initiative. This diplomatic push formed part of a broader effort to strengthen ties ahead of the GCC Trade Ministers’ meeting in Qatar on 31 October, attended by the Secretary of State for Business and Trade.
That meeting provided an important opportunity to engage directly with ministers from all six GCC member states — Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates — and reaffirm a shared commitment to concluding a comprehensive and commercially meaningful agreement.
Negotiations throughout the autumn have been described as constructive, with significant progress made across key chapters of the treaty. The talks have continued with “good momentum” from both sides, according to officials involved, fuelling optimism for a modern FTA that addresses the evolving needs of international commerce.
A successful agreement is expected to deliver substantial benefits for both the UK and GCC economies. Estimates suggest that an FTA could increase bilateral trade by 16%, equating to an additional £8.6 billion in trade annually on top of the existing £57.4 billion. Officials have described the deal as a route to targeted economic growth, higher wages, and increased investment.
Technical discussions have helped narrow outstanding issues in these areas, particularly regarding market access and the movement of business professionals. Talks on investment remain a key priority for both parties, reflecting the robust levels of two-way investment between the UK and GCC nations. Additionally, a proposed digital trade chapter aims to position the agreement as future-facing, enabling it to respond to rapid technological change and foster innovation across sectors.
Negotiations on goods have focused on achieving commercially meaningful outcomes for both sides. The UK has continued to advocate for its key interests, with particular emphasis on improving access for UK exporters. Technical progress has also been made on Rules of Origin and Trade Remedies, with efforts continuing to resolve the remaining areas of divergence.
Beyond the core economic elements, negotiators have also made advances on sustainability chapters, including environmental and labour standards. Discussions have further addressed mechanisms for dispute resolution and transparency, reinforcing the UK’s commitment to ensuring that any deal reflects high standards of governance.
As negotiations continue, ministers have reiterated their recognition of Parliament’s crucial role in the scrutiny of the UK’s trade policy. The government has pledged to keep Parliament appropriately informed while safeguarding the integrity of the negotiating process.
With the next phases of negotiation underway, officials remain confident that the UK-GCC Free Trade Agreement can be concluded at pace, paving the way for deeper economic ties with one of the world’s most dynamic regions
