A historic trade agreement between the Gulf states and Britain worth £15.5bn

Last Thursday saw the signing of a landmark trade agreement between the GCC and the UK, after four full years of negotiations. This historic agreement includes the six member states of the Council: the United Arab Emirates, Saudi Arabia, Qatar, Kuwait, Oman and the Kingdom of Bahrain. British Prime Minister Keir Starmer confirmed that the Gulf states are strategic economic partners, noting that this agreement Bilateral relations will deepen and open new horizons for trade and investment. According to the British Foreign Office, the agreement will cancel customs duties estimated at £580 million annually, of which £360 million will be canceled once the agreement enters into force. Economic estimates predict that the agreement will add £15.5 billion annually to the total trade between the two parties, while contributing £3.7 billion to the British economy annually on Long term vs. 2040 forecast. The agreement will also improve logistical procedures by speeding up customs clearance processes to 48 hours and perishable shipments to less than 6 hours. The Secretary-General of the Gulf Cooperation Council, Jassim Mohammed Al-Budaiwi, praised the agreement as comprehensive and modern, covering trade in goods, services, financial services, digital trade and investment protection. He added that the agreement represents a qualitative leap in relations economic relations between the two sides and supports the efforts of the Gulf countries to diversify their economies away from oil towards the fields of artificial intelligence and financial services.