RIYADH, May 23 (Arab News): The UK has become the first G7 nation to secure a trade agreement with the Gulf Cooperation Council, in a deal projected to add £3.7 billion ($5 billion) annually to the British economy.
According to a UK government statement, the agreement with the six-member GCC bloc is also expected to generate £1.9 billion in real wage gains.
At the core of the deal is a broad reduction in tariffs. Around £580 million in duties on UK goods exported to the Gulf will eventually be eliminated, including £360 million that will be removed immediately once the agreement comes into force.
UK Prime Minister Keir Starmer hailed the agreement as "a huge win for British business," noting it marks the government's fifth major trade deal since taking office, following agreements with India, the US, the EU and South Korea.
"The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment," he added.
Commenting on the deal, GCC Secretary-General Jasim Al-Budaiwi said it "will contribute to cementing the economic pathways of both regions for generations to come."
The GCC official said that the agreement contains a framework designed to achieve tangible, sustainable, and measurable economic benefits for businesses, investors, and citizens across all seven signatory economies.
Business and Trade Secretary Peter Kyle echoed that confidence, stating the deal "sends a clear signal of confidence - giving UK exporters the certainty they need to plan ahead and reinforcing the strength and stability of the UK's trading relationship with the Gulf at a critical moment."
Combined with the recently announced India deal, the two agreements are expected to add more than £8 billion annually to UK gross domestic product compared to 2040 projections.
