UK ready to sign Gulf trade deal within weeks, says trade minister

The UK is poised to formally sign a Gulf Cooperation Council (GCC) trade agreement within weeks as part of efforts to bolster economic ties with the strategically vital region, according to the country's new trade minister, Anas Sarwar. Sarwar, who recently embarked on his first overseas trip outside Europe in his new role, visited Saudi Arabia and the United Arab Emirates (UAE) to discuss the pending deal and explore potential future bilateral agreements between the UK and the UAE.

The GCC agreement, expected to increase UK trade with the region by 19.8% over time, is seen as crucial in light of the ongoing Iran conflict. The war has disrupted energy supplies and raised concerns over global trade routes, particularly the crucial Strait of Hormuz, where two Saudi supertankers were recently attacked. The economic impact of the conflict has led Britain to seek stronger economic partnerships with the Gulf, with Sarwar emphasizing that discussions on the GCC deal are set to conclude within weeks rather than months.

The potential agreement is projected to boost bilateral trade by $20.96 billion annually, eliminate tariffs on UK exports valued at $784 million per year, and facilitate increased investment flows from the Gulf to the UK. Sarwar noted that the UK-UAE trade relationship is already robust, with the UAE being the UK's largest Gulf trading partner and the 20th largest globally.

As part of the push for deeper economic ties, Sarwar aims to facilitate increased investment from both the UAE and Saudi Arabia into the UK while encouraging British businesses to expand their presence in the Gulf region.