Top Benefits of the UK-Gulf Cooperation Council (GCC) FTA

21 May 2026 09:03 AM

Top Benefits of the UK-Gulf Cooperation Council (GCC) Free Trade Agreement 

This is a deal that: 

- Delivers growth and prosperity across the UK  

This Free Trade Agreement (FTA) delivers on the Government’s core mission to generate the economic growth that will put money in people’s pockets and raise living standards right across the UK, in line with the Government’s growth agenda. On its own, this deal is estimated to add £3.7 billion to our economy each year in the long run when compared to 2040 projections, and £1.9 billion a year to real wages. When combined with the India FTA, the two agreements are estimated to add over £8 billion a year to UK GDP when compared to 2040 projections. This is underpinned by an ambitious tariff‑cutting package which will eliminate duties worth an estimated £580 million a year on UK goods exported to the GCC based on existing trade once the deal is fully implemented. £360 million worth of these duties will be removed on day one of the agreement entering into force*. 

This agreement deepens our partnership around shared principles - open trade, the certainty that businesses rely on in uncertain times, and the shared prosperity that drives long‑term economic success for all our nations. 

This  comprehensive agreement is, overall, the furthest the GCC have ever gone in a trade deal, and their first ever with a G7 nation.  It delivers the stability and certainty essential for prosperity, ensuring UK firms have secure access and growing opportunities across the Gulf. 

Make UK CEO Stephen Phipson CBE said:

With an increasing rise in global trade and economic protectionism, yesterday’s announcement of the successful conclusion to the Free Trade Agreement (FTA) talks between the United Kingdon (UK) and Gulf Cooperation Council (GCC) sends a powerful signal that the UK is open for business and remains resolute in its commitment to free and fair trade.

This agreement will support future economic growth for the world’s 6th and 9th largest economies. It will catalyse collaboration between two of the world’s largest and dynamic economies and will drive greater innovation, unlock growth, and build prosperity across a long-established and rich-in heritage corridor of trade, capital, and investment.

This future agreement should give British businesses the confidence they need to enter the market, trade more easily and benefit from the massive opportunity from the Region’s sustainable energy transition and collaboration in advanced manufacturing technological advancements.

Confederation of British Industry (CBI) Chief Executive Rain Newton-Smith said: 

The government has been steadfast in its commitment to openness – a clear demonstration of the UK’s leadership in championing free and fair trade in the face of rising global protectionism. 

 A new Free Trade Agreement with the Gulf Cooperation Council (GCC) represents an important opportunity to drive growth at home by deepening our cooperation with some of the world’s most dynamic and forward-looking economies. 

 The GCC’s strong investment capacity and growing diversification present sizeable opportunities for UK firms across advanced technologies, infrastructure, clean energy and services. 

 As the UK and its Gulf partners move towards concluding this landmark deal, a strong partnership between government and business will be essential to unlock the full potential of this ambitious new chapter in our global trade story.

HSBC UK Head of Commercial Banking Stuart Tait said: 

The conclusion of a Free Trade Agreement between the GCC and the UK is a significant milestone. This agreement will create new opportunities for businesses, bringing together one of the world’s fastest growing and modernising regions with the UK’s complementary strengths in key areas such as services, life sciences and innovation. We look forward to supporting this new partnership to deliver shared prosperity for both economies.

- Supports investment between the UK and GCC countries 

This deal will unleash the power of international investment to drive growth and support jobs, recognising we are already significant investors in each other’s countries. The Gulf is a major source of inward investment for the UK, including multi-billion-pound investments supporting critical infrastructure like Heathrow Airport. Total Foreign Direct Investments, portfolio, derivatives and other investment assets and liabilities between the UK and Gulf Arabian countries – which include the GCC nations, Yemen and Iraq** – totalled around £485 billion at the end of 2024.*** This agreement will help give both UK and GCC investors greater confidence to invest in each other’s projects, which is crucial for economic growth. In this deal we have agreed comprehensive levels of protections for UK and GCC investors and their investments, ensuring they receive fair and non-discriminatory treatment that will help give investors the confidence to make long-term investment decisions. It will also provide transparent independent legal recourse to resolve disputes if treaty obligations are breached. This will help ensure projects in both regions have the certainty they need to succeed.  

Lady Mayor of the City of London Dame Susan Langley DBE said: 

 This is a landmark moment for UK-GCC relations. The new Free Trade Agreement will unlock billions in trade, boost investment, and deepen our ties across financial services, fintech, and digital services.

The UK is open for business—and with the launch of the Mansion House Accord and Office for Investment: Financial Services, GCC investors now have a direct gateway into one of the world’s most dynamic financial ecosystems. The agreement will also encourage British businesses to open operations in the GCC. Together, we are building a future of shared prosperity.

The UK and the Gulf are an integral part of the global financial system, and I welcome our joint commitment to free and open trade.

Heathrow Airport Chief Customer Officer Ross Baker said: 

Tourism, trade, and investment between the UK and the GCC is critical for economic growth. As the UK’s only hub airport, Heathrow is vital to these connections, handling 71% of UK air cargo exports to the GCC. 

We welcome this Free Trade Agreement and the opportunities it brings, with Heathrow the gateway for the businesses and people across the UK who sell, invest, or travel to markets across the Gulf. By backing Heathrow expansion the Government is ensuring even more UK businesses can benefit from smoother trade links by adding 50% capacity to the country’s most valuable cargo port.

TheCityUK Managing Director, International, Nicola Watkinson said:  

The UK-GCC FTA is a significant step in deepening the UK’s economic relationship with one of the world’s most dynamic and fast-growing regions. For financial and related professional services, this agreement provides a stronger platform for long-term partnership, supporting capital markets, innovation, and deeper collaboration between the UK and GCC markets.

- Delivers opportunities for the UK’s priority high-growth sectors 

This deal supports the world-leading high-growth sectors identified in the UK’s Industrial Strategy, including by: 

  • Eliminating tariffs on UK exports for the UK’s advanced manufacturing sectors including automotives, aerospace and machinery and electronics. This, alongside liberalising GCC imports, could enable UK businesses to unlock new export opportunities and buy cheaper inputs from GCC member states. 

  • Promoting international cooperation on environment and climate issues, such as the transition to clean energy technologies. This will support the growth of UK companies already doing business in the region including Carbon Clean and Ricardo. As a world leader in green energy, the UK is well placed to meet the Gulf’s growing needs supporting this essential transition. In recent years, the GCC has committed billions of dollars to wind farms, solar power and other renewables supporting the UK’s clean growth agenda.   

  • Breaking down barriers and promoting innovation in the creative industries. The deal preserves copyright protections which will increase transparency, help provide high-quality, safer products and provide UK businesses with the confidence that their rights are protected.  

  • Facilitating the free flow of financial data to make cross-border trade in financial services easier, supporting firms like Standard Chartered and Santander. This deal is the first time the GCC has agreed to commitments prohibiting unjustified and disproportionate data localisation requirements, facilitating UK firms to store and process financial data outside of the region. The agreement lays a foundation for enhanced cooperation with financial hubs like Dubai, Abu Dhabi, and Bahrain in UK specialisms like banking, insurance, and fintech. 

  • Providing valuable legal certainty for UK businesses operating across sectors, including in financial and professional business services, by locking in existing levels of market access and improving regulatory transparency and efficiency. This will benefit companies including Deloitte.

  • Securing the most ambitious business mobility commitments the GCC has ever granted to a trading partner. These commitments provide for improved transparency and consistency of processes needed for business travel, supporting the delivery of commercial activity and trade. Skilled UK professionals, such as those working in engineering services companies, now have greater certainty that they can travel to the GCC to deliver services under contract, engage in business activities, or transfer to an office of their company in the GCC, subject to the specific commitments by each GCC Member State.   

  • Securing far-reaching digital provisions which will support our innovative businesses like Tramshed Tech and Galaxkey. The deal will promote open internet access, protections against the forced transfer of source code and proprietary cryptographic information, and cooperation on emerging technologies like AI and paperless trade. 

  • Bringing new opportunities for the life sciences companies like Phytome Life Sciences by slashing tariffs on medical equipment, which could strengthen supply chains as costs are lowered not only for businesses but for consumers. 

SMMT Chief Executive Mike Hawes said:

 The UK automotive industry welcomes the agreement in principle with the Gulf Cooperation Council and its ambition to strengthen trade with this important export region. We look forward to seeing the full detail to understand its impact and ensure it supports the sector’s competitiveness and future growth. With GCC markets currently disrupted by regional conflict, restoring stable trading conditions is the industry’s immediate priority. These markets are vital to UK automotive exports, and with the right framework in place, this agreement has the potential to support long-term opportunity for UK automotive manufacturers.

Deloitte Head of Tax and Trade Policy Amanda Tickel said:  

The UK-GCC Free Trade Agreement represents an important milestone in strengthening the UK’s trade relationship with one of the world’s fastest-growing regions. By locking in existing market access to provide greater certainty and through supporting regulatory cooperation, the agreement will support the UK services sector to grow internationally. 

Ahead of the announcement of the FTA, our recent Attitudes to Trade Survey found that 64% of UK business leaders anticipated a UK-GCC FTA to be beneficial for the UK economy, highlighting strong underlying business support for the agreement.

Carbon Clean Chair and CEO Aniruddha Sharma said: 

For pioneering climate technology companies, the fastest path to scale runs across borders, and, with pilot partnerships completed and under way in the UAE (ADNOC) and Saudi Arabia (Aramco), we have seen firsthand how the Middle East can and will come to play a decisive role in driving Carbon Capture, Usage and Storage forward. 

A UK-GCC Free Trade Agreement would help growing companies, such as ourselves, move quickly from demonstration to large-scale deployment by breaking down regulatory and legal barriers to collaboration, strengthening the conditions for innovation and deepening collaboration between two regions with a shared interest in becoming global leaders in this field.

Galaxkey CISO and Board Member Sameer Shaikh said:  

The FTA will help Galaxkey grow its business in the GCC by strengthening government-to-government trust, which would open more opportunities for UK cybersecurity firms to participate in national projects and digital-transformation programmes. 

It will provide fast-track business growth and closures through joint forums which will help build relationships with cyber leaders (an essential element of succeeding in the GCC).  

It will facilitate digital trade by including strong digital economy provisions that allow for secure cross-border data flows — a critical enabler for Galaxkey’s SaaS and hybrid deployment models.

Intelligent Growth Solutions (IGS) CEO Andrew Lloyd said:  

The UK-GCC Free Trade Agreement has the potential to act as a powerful catalyst for British agritech innovation by accelerating projects across the Gulf region and embedding sustainable food production. 

The agreement will help us forge deeper partnerships, deploy our technology faster, and contribute meaningfully to food security and climate resilience in some of the world’s most climate-challenged environments.

Howden Middle East and Africa CEO Richard Mockett said:  

Howden’s presence across the GCC countries in retail, specialty insurance broking and reinsurance has already made a vital contribution to our growth globally over several years.  

We are incredibly excited by the reciprocal opportunities this agreement will bring to our clients and people across GCC countries as we look to expand through investment and partnership across the region. 

Association of British HealthTech Industries’ International Business Director Suzie Ali-Hassan said:  

The UK-GCC Free Trade Agreement represents an important opportunity to further strengthen HealthTech trade and investment between the UK and the Gulf region. 

The Gulf has long been a key partner for UK medical device, diagnostics and digital health businesses, and through our work supporting companies in the region, including trade shows and our Middle East Accelerator, we continue to see significant potential to expand collaboration and deliver healthcare outcomes that benefit patients across both regions.

UK Finance Managing Director David Raw said:

The agreement empowers our members to act as a bridge for capital and innovation, ensuring companies on both sides can fully harness the potential of a more dynamic and prosperous relationship. > As we look ahead, strengthening connectivity in transition finance, capital markets and digital assets will be the key to ensuring this partnership continues to boost prosperity across the UK and the Gulf.

Ricardo PLC Managing Director, Middle East, Akin Adamson said:  

Ricardo welcomes the signing of the UK-GCC FTA which will foster bilateral cooperation, drive innovation and increase shared prosperity for all.

Phytome Life Sciences CEO Dr Sebastian Vaughan said:  

A UK–GCC Free Trade Agreement unlocks a powerful UK–GCC axis of global thought and industrial leadership, combining a deep reservoir of UK intellectual capital with the rapidly expanding infrastructure, capital, and innovation ecosystems emerging across the GCC’s biotechnology sector.

By reducing friction on the movement of ideas, talent, innovation and technologies, this agreement radically accelerates the translation of cutting-edge science into real-world solutions. The result? Faster commercialisation, greater economic value and meaningful social impact.

AEI Saudi Founder Director, Senior Advisor to the Middle East Association, Adam Hosier said:  

At AEI we support 100s of companies each year to succeed in Saudi, the Middle East’s largest market. The UK-GCC FTA will only increase that number, easing access to the unparalleled opportunities available across the region.  

For instance, we have long championed greater local presence and collaboration by any company entering these markets, and this FTA recognises and supports exactly that with key considerations from data localisation to improved mobility commitments.

HCR Law Partner Raj Pahuja said:  

The UK GCC FTA marks a landmark moment for UK businesses and the Gulf region. As the most significant agreement of its kind in Europe with the GCC, it opens the door to substantial new opportunities across key sectors and has the potential to drive major commercial growth. We look forward to supporting our clients as they navigate this new landscape and maximise the benefits of the agreement.

Tramshed Tech Co-Founder Mark John said:  

Tramshed Tech is committed to supporting companies and organisations from the Welsh digital and tech ecosystem to access the international marketplace. 

The continuing support and specialist expertise of DBT and UK Government have proved invaluable in enabling Tramshed and our member and tenant companies - and our wider networks - to access class-leading export opportunities from the GCC region.

We see the confirmation of this GCC trade deal, brokered by DBT/UK Government, as a key growth measure to underpin export growth opportunities for the Welsh economy - it is warmly welcomed by Tramshed and our tech community in Wales (and across the UK).

Pearson UK CEO Sharon Hague said: 

As nations adapt to evolving workforce demands, we welcome this agreement as a positive step in strengthening UK–GCC cooperation. By deepening cross-border education partnerships, it creates new opportunities for teachers and learners across the UK and the GCC to access high-quality, digitally enabled education at scale.  

Technology is advancing rapidly, but it is human expertise, and the ability to learn and adapt, that ultimately unlocks its full economic potential.

- Boosts opportunities for British brands in everything from food to cars  

The Gulf loves British goods – and British goods manufacturers and producers are going to benefit further from trading with the Gulf, thanks to this deal. The agreement secures significant tariff reductions - eliminating an estimated £580 million in duties faced by UK exporters based on existing trade flows, with £360 million removed on day one of the agreement entering into force.** ** After a decade, 90% of GCC tariff lines will be removed, unlocking tariff‑free access for around 93% of UK goods exports based on existing trade flows.    

This means that around two thirds of UK goods will enter the GCC tariff-free immediately after the deal enters into force, rising to around 93% after ten years, delivering a major boost for UK manufacturers, food producers and high-value brands.  

Tariffs will be removed on automotives made in the UK and sold in the Gulf. In 2025, we exported £1.4 billion-worth of cars to GCC countries currently facing tariffs of 5%. Brands renowned for quality can expect to benefit. Tariffs will be removed on iconic products like oats, cereals, biscuits, baking products, salmon which all face tariffs of 5%, although certain countries apply higher tariffs on specific products. UK exports of frozen lamb and the majority of cheese will also see tariffs removed on day one of the agreement entering into force.  

Retail and beauty brands are set to thrive too: the GCC will cut tariffs on UK perfumes and skincare of 5%, although certain countries apply higher tariffs on specific products. This deal means more British quality products on shelves, more sales, and a bigger presence for our best-loved brands across the Gulf. 

NFU President Tom Bradshaw said:  

I’m really pleased our government has listened to our concerns and ensured we can take advantage of the strong demand in the GCC for things like lamb, cheese and oats - securing greater access for high‑quality British goods while safeguarding our pork, chicken and egg sectors. 

It will be a relief to farmers and the public that the government has held firm on its promise to safeguard Britain’s high food production standards.

Food & Drink Federation Chief Executive Karen Betts said:  

Food and drink manufacturers welcome the new Free Trade Agreement with the Gulf Cooperation Council (GCC). It’s an exciting opportunity to boost trade with what is a rapidly growing market for UK food and drink.

Prior to the war in Iran, our exports to the region were worth over £800m a year and growing at twice the rate of EU exports, reflecting the high demand in GCC countries for high quality, delicious and trusted British brands. While we expect trade to continue to be disrupted in the short-term, the removal of tariffs from day one on iconic British products like oats, breakfast cereals and biscuits will help food manufacturers build export momentum in the years ahead.

We look forward to working with the Government to ensure food and drink businesses have the support they need to make the most of this new opportunity.

Walker’s Shortbread Head of International Sales Alastair Walker said: 

Having exported to the GCC region for more than 40 years, it remains a key strategic market for the development and growth of our brand. We are supportive of any processes which help to reduce costs, simplify customs and share market data. Such advancements are key to ensuring the flexibility and momentum we need to grow with our trusted regional partners.

Jermyn Street Association Director Katie Thomas said: