Other BriefingsUK – Gulf Cooperation Council Free Trade Agreement Talks: Latest Updates
Bilateral UK-GCC Trade expected to increase by 16% when FTA is enacted
The free trade negotiations between the UK and the six members of the Gulf Cooperation Council (GCC) are “progressing well” and will enhance the flow of goods, the UAE’s ambassador to the United Kingdom has said on Tuesday (September 26).
Mansoor Abulhoul stated that “I am really encouraged by what could be achieved by deepening our trade links with the UK.”
Once concluded, a deal between the UK and the Gulf Arab bloc could increase trade by at least 16%, according to UK government estimates. The GCC includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Total trade between the UK and the Gulf exceeded £61.32 billion last year. Taken together, GCC countries were the UK’s seventh-largest export market, according to the UK government’s projections. The UK has been working to conclude trade agreements with partners around the world since Britons voted in a 2016 referendum to leave the European Union.
The last round of talks took place in London in July with further negotiations expected later this year. The GCC members are also part of the Greater Arab Free Trade Area (GAFTA) which also includes Algeria, Iraq, Jordan, Lebanon, Libya, Morocco, Palestine, Sudan, Syria, Tunisia, and Yemen. British businesses establishing a presence in either the GCC or GAFTA can access these additional markets duty free, depending upon product category. Professional assistance should be sought to create a regional marketing initiative to understand these benefits.
However, the GCC’s top trade partners are located in Asia. Last year, China and India were the UAE’s two largest trade partners with flows totaling nearly US$190 billion.
Abulhoul said burgeoning ties with Asia would not come at the expense of “very mature relations with the US and Europe where we have deep security and investment ties.”
“When you think of our trade with India and China, these are our two top trading partners, something we can’t really ignore and something we welcome,” Abulhoul said. “This is about building prosperity links and bridges and we very much see multi-lateralism as the way forward.”
Dezan Shira & Associates advises foreign investors into Asia and have done for over 30 years. We have an office in Dubai and can assist British companies understand and enter the GCC markets. Please contact us at dubai@dezshira.com for assistance or download our complimentary new Middle East investment report below.
Related Reading
An Introduction to Doing Business in Dubai 2023
The Middle East Foreign Investment Trends with Focus on the UAE
About Us
Middle East Briefing is one of five regional publications under the Asia Briefing brand. It is supported by Dezan Shira & Associates, a pan-Asia, multi-disciplinary professional services firm that assists foreign investors throughout Asia, including through offices in Dubai (UAE), China, India, Vietnam, Singapore, Indonesia, Italy, Germany, and USA. We also have partner firms in Malaysia, Bangladesh, the Philippines, Thailand, and Australia.
For support with establishing a business in the Middle East, or for assistance in analyzing and entering markets elsewhere in Asia, please contact us at dubai@dezshira.com or visit us at www.dezshira.com. To subscribe for content products from the Middle East Briefing, please click here.
