The UK has agreed a new trade deal with six Gulf states in what the government describes as a major boost for exports, investment and long-term economic growth.
Expected to add £3.7 billion to the UK economy, the agreement with Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE is also predicted to remove around £580 million a year in tariffs on British exports once fully implemented. Products set to benefit include cheddar cheese, butter and chocolate, alongside wider industrial and services sectors.
As the first agreement between the Gulf Co-operation Council (GCC) and a G7 country, the deal is strategically significant. For the UK, it reflects a continued push to expand trade relationships outside Europe and strengthen ties with high-growth markets.
Beyond tariff reductions, the agreement is designed to improve market access for British firms operating in the Gulf, particularly through easier partnerships and increased mobility. Chancellor Rachel Reeves said: "This agreement is good for jobs, good for industry and ultimately good for consumers."
Prime minister Keir Starmer described the agreement as a "huge win" for British workers and companies, while business and trade secretary Peter Kyle said it would provide exporters with certainty at a time of global instability.
The deal also highlights the growing importance of the Gulf region in UK trade strategy. GCC economies remain major energy producers, but they are also investing heavily in sectors such as infrastructure, technology and finance as part of wider economic diversification plans.
For businesses, the practical impact is likely to centre on improved market access and lower trading costs. Combined with recent agreements with India, South Korea, the US and the EU, the GCC deal reinforces the UK's effort to position trade diversification as a central part of its post-Brexit economic strategy.