UK signs landmark Gulf trade deal with major opportunities for importers and exporters

The UK has signed a landmark free trade agreement with the Gulf Cooperation Council (GCC), covering Saudi Arabia, United Arab Emirates, Qatar, Kuwait, Bahrain and Oman, in what is being described as one of the UK’s most significant post-Brexit trade agreements.

The deal is expected to deliver major benefits for UK businesses by reducing tariffs, improving market access and strengthening trade relationships with one of the world’s fastest-growing economic regions.

Once ratified, around 93% of GCC tariffs on UK goods are expected to be removed, with many tariffs eliminated immediately when the agreement comes into force. Sectors expected to benefit include automotive, aerospace, advanced manufacturing, industrial goods, food and drink, technology and professional services.

Products including cereals, chocolate, butter and cheddar cheese are expected to become tariff-free, helping UK exporters become more competitive across Gulf markets.

Major opportunities for UK exporters

For UK exporters, the agreement could create significant new commercial opportunities through:

• Reduced tariffs and lower export costs
• Improved market access across GCC countries
• Simpler customs and trade procedures
• Greater certainty for long-term investment and expansion
• Stronger commercial partnerships across the region

The agreement is also expected to improve opportunities for UK service providers, particularly in sectors such as finance, consultancy, technology, education, hospitality and professional services.

For many UK businesses, particularly SMEs, the UAE is likely to remain an important gateway for wider expansion across GCC markets.

Benefits for UK importers and supply chains

For UK importers, the agreement may strengthen supply chain access and improve long-term trading relationships with GCC partners, while potentially reducing costs on selected imported goods.

The deal is also expected to support increased inward investment from GCC countries into UK industries, infrastructure and growth sectors, creating wider economic benefits for UK businesses.

Strategic importance for UK trade

The GCC is already one of the UK’s most important non-EU trading partners, generating around £57 billion in trade annually for the UK economy.

The agreement represents another significant step in the UK’s strategy to strengthen global trade relationships beyond Europe and secure long-term economic growth through high-potential international markets.

For businesses trading with the Gulf region — or considering expansion into these markets — the agreement could create substantial opportunities for export growth, investment and supply chain development.

By Carla Assunção, Chamber International

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