GGC – UK Trade Increased 70% To Reach US$82.7 billion In FY 2022-23

GCC-UK Free Trade Negotiations Also Progressing

The beleaguered British economy finally had something to cheer as statistics released by the UK’s Department for Business and Trade have stated that the total trade between the UK and GCC countries rose by more than 70% to £64.5bn ($82.7bn) in the fiscal year that ended in March 2023. The previous years trade total was £37 billion.

The increase was driven by rising oil prices and a demand for services as Gulf countries’ diversify their economies.  The GCC includes Saudi Arabia, Kuwait, the United Arab Emirates, Qatar, Bahrain, and Oman.

Average prices rose to US$100 a barrel last year, compared with about US$70 in 2021. The UK has increased its purchases of Gulf oil and gas since the start of the Ukraine conflict to compensate for supplies it previously received from Russia.

Trade also continues to be boosted by the GCC’s efforts to diversify away from oil. This has encouraged growth in Gulf imports of UK professional services to assist delivery of various projects. The UK’s export of services to the GCC rose over the year to nearly £18 billion.

The UK-GCC Free Trade Agreement

The fourth round of negotiations on a free trade agreement also took place last week in London. Discussions were held across 23 policy areas over 44 sessions and “good progress” was made, a government statement said.

Chris Innes-Hopkins, UK executive director of the Saudi British Joint Business Council, said the latest figures reflected a “growing engagement” by UK companies in new sectors of the fast-growing Saudi economy. “The services sector is particularly buoyant and it’s good to see many smaller UK companies getting involved in fintech, creative industries and education opportunities among others,” he said.

Foreign secretary James Cleverly highlighted the UK’s growing partnership with Gulf countries last week during a three-day visit to Qatar, Kuwait and Jordan.

The UK government has announced that citizens from Qatar and other GCC countries will be among the first to benefit from the UK’s new Electronic Travel Authorisation visa scheme, which will make travel to the UK cheaper and easier for visitors.

Bradley Jones, executive director of the UAE-UK Business Council, said the COP28 environmental conference, which will be hosted in Dubai later this year, is “really drawing attention” to opportunities for UK-UAE collaboration in sustainability and decarbonisation.

Lord Dominic Johnson, a minister of state in the UK’s Department for Business & Trade, added: “We are seeing extraordinary rates of growth for British companies operating in the Gulf. I spoke to one of the big accounting firms. They are looking at 35% annual growth.”

Dezan Shira & Associates have over 30 years experience of assisting foreign investors into Asia and the Middle Easy and have a regional office in Dubai. For market research, legal, tax planning and related professional services please contact Adam Livermore at dubai@dezshira.com. Our “Doing Business in Dubai 2023” guide is available as a complimentary download below.  

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