UK seals £3.7bn trade pact with Gulf bloc

The UK government has agreed a free-trade agreement with the six member states of the Gulf Cooperation Council: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates. Ministers say the pact will be worth £3.7 billion a year to the UK economy once in force.

The agreement is presented by the government as a major step in strengthening economic ties with the Gulf region and expanding opportunities for British exporters across goods and services.

According to official estimates, duties totalling about £360 million will be removed as soon as the agreement comes into force. Once the deal is fully implemented, the government expects about £580 million a year in tariffs on British exports to be eliminated.

The government said tariffs will be removed on around 93% of British goods sold in the six Gulf countries. The coverage includes sectors such as food, medical equipment, defence, aerospace and advanced manufacturing.

Ministers argue that cutting tariffs across this broad range of industries will improve the competitiveness of UK products in Gulf markets and support trade volumes between the UK and the six states.

For the first time in a trade agreement with the Gulf bloc, negotiators secured commitments on the free flow of data. The government said these provisions will allow UK firms to operate in the region without being required to store data locally.

Officials describe the data chapter as a key element for service providers and technology-driven businesses, which rely on cross-border data transfers to deliver products and manage operations.

Ministers have framed the agreement as a boost for exporters and jobs in the UK, linking the expected tariff savings and improved market access to potential economic gains. They have highlighted opportunities for companies across manufacturing, defence-related industries and other high-value sectors.

The government also presented the pact as a significant diplomatic and commercial milestone, describing it as the third trade agreement concluded by Prime Minister Keir Starmer’s administration, following earlier deals with India and South Korea.

Rights groups and campaigners responded to the announcement by criticising the agreement for lacking a dedicated human rights chapter. They raised concerns about labour protections and wider standards within the framework of the deal.

In reply, the government said that political channels would be used to raise rights issues with Gulf partners, while maintaining that the agreement’s primary focus is on expanding economic opportunities for UK firms.