Policy paper

UK-Gulf Cooperation Council (GCC) trade deal: conclusion summary

Published 20 May 2026

1. Introduction

Delivering growth. Securing investment. Strengthening global ties.

The UK has successfully concluded a milestone free trade agreement (FTA) with the Gulf Cooperation Council (GCC), comprising the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates (UAE). This is a major win for the UK and the Gulf and is the latest step in our mission to grow the economy through high-quality trade deals that deliver real benefits for people across the UK.

Agreement was reached on Wednesday 20 May 2026 between the Minister of State for Trade Policy, Sir Chris Bryant, and His Excellency Mr Jasem Mohamed Albudaiwi, Secretary General of the GCC, following final talks in London.

The agreement is a major step in the government’s approach to supporting growth. It aligns with the UK’s Trade Strategy and Industrial Strategy by:

• securing long-term market access
• reducing barriers for UK exporters
• unlocking investment in high-growth sectors

The deal reinforces the ‘backing your business’ small and medium-sized business (SME) growth strategy by opening new opportunities for smaller UK businesses to scale and compete globally. It is part of a new generation of international deals we are striking to:

• grow the economy
• support better-paid jobs
• raise living standards

With our recent announcements on the EU, India, South Korea and the US agreement, this deal shows we are turning global engagement into real economic outcomes. We are putting the UK and our closest partners at the heart of modern, forward-leaning trade.

Taken together, our deals with the GCC and India are estimated to add over £8 billion a year to the UK economy in the long run when compared to 2040 projections^{[footnote 1]}. This agreement delivers the stability and certainty essential for prosperity, ensuring UK firms have secure access and growing opportunities across the Gulf.

The UK’s ties with the Gulf are deep, historic and future-focused. This deal is founded upon our shared commitment to open trade, mutual prosperity and the long-term economic success of all our nations. When the wider global environment is uncertain, the rules-based framework that this deal upholds offers the tools to help businesses plan, invest and grow. It supports jobs and raises living standards in the UK and across the Gulf.

By securing this deal, we are not only the first G7 nation to strike a comprehensive FTA with the GCC, but this is one of the most ambitious agreements the GCC has concluded to date in many areas. From industrial and agricultural goods to services and investment, this deal opens up one of the world’s most important markets to British business, securing long-term access and providing UK companies with an advantage over their international competitors.

The GCC, with a combined GDP of £1.9 trillion^{[footnote 2]}, represents a valuable import market worth $1.04 trillion^{[footnote 3]}, which is projected to almost double in real terms by 2050^{[footnote 4]}. Our deal is estimated to boost the UK economy by £3.7 billion a year in the long run^{[footnote 5]} when compared to 2040 projections, and increase real wages by £1.9 billion annually^{[footnote 6]}, creating new opportunities for businesses and workers across every region and nation of the UK.

Total trade with the GCC is worth £53 billion, according to the latest Office for National Statistics (ONS) figures and bilateral trade could increase by 19.8%. This potentially adds an extra £15.5 billion a year to trade between the UK and GCC countries in the long run when compared to 2040 projections^{[footnote 7]}.

This deal will remove an estimated £580 million in duties a year, based on current UK exports to the GCC, once the agreement is fully implemented, with £360 million worth of these estimated duties to be removed on day one of the agreement entering into force^{[footnote 8]}. This deal will open new opportunities for growth across:

• aerospace businesses in the Midlands
• agri-food producers in Wales
• energy developers in Scotland
• technology innovators in Northern Ireland
• finance hubs in London and Edinburgh

This document sets out what has been agreed between the UK and GCC and includes chapter summaries outlining its terms. Both sides will continue to work to finalise the legal text of the deal. Once this has been completed and legally verified, arrangements will be made for the signing of the agreement. Following signature, and subject to fulfilment of UK and GCC countries’ governmental requirements, including UK parliamentary procedure, the agreement will enter into force.

2. The strategic case for a deal with the GCC

Sustained economic growth is this government’s top priority. The UK Trade Strategy published in June 2025 positions trade as a central driver of long-term, inclusive, and resilient growth. FTAs are an important part of this, used to lower barriers, expand market access and unlock new opportunities for UK businesses to export their world-class goods and services.

The deal delivers on our Industrial Strategy with benefits for businesses across priority sectors, from tariff cuts on medical equipment to stronger copyright protections for creative industries businesses, and enhanced business certainty for UK financial and legal services in Gulf markets.

It also has far-reaching digital provisions which will drive innovation and support the use of emerging digital technologies for our tech companies, including in areas such as:

• artificial intelligence
• paperless trade
• clean energy

We are also supporting small businesses in line with our Small Business Strategy. SMEs across the UK will benefit from dedicated support measures, such as trade facilitation, digital tools and a business support team, to help them with export finance.

Strengthening a strategic partnership

The UK’s partnerships with the Gulf are deep and historic. This landmark FTA shows that they are also future-focused and growing, a strong signal of our commitment to continue to work together.

Our ties span decades of collaboration across trade, defence, energy and culture. At its core, this agreement recognises the importance of certainty and stability and the role this plays in supporting prosperity across our countries. For the thousands of UK firms already trading with the Gulf, and the many more considering doing so, this agreement will offer guaranteed access and opportunity in the years to come.

The GCC is already a trading powerhouse with an import market set to almost double in real terms by 2050^{[footnote 9]}. This FTA will give UK businesses a competitive edge by:

• cutting tariffs
• locking in market access for our services businesses
• reducing trade barriers
• reinforcing critical supply chains

The deal responds directly to UK business asks from the call for evidence and ongoing engagement and will improve the ease of doing business. It will open new pathways for British businesses, with UK exports to the GCC estimated to potentially increase every year in the long run by a further £14.3 billion (22.6%) when applied to projected levels of trade in 2040^{[footnote 10]}.

Crucially, the deal reflects the region’s economic transformation, supporting digital trade and green growth. This agreement will protect the free movement of financial data flows between the UK and GCC, enabling UK financial services businesses to store and process financial data outside the region. This will support digital trade and enhance the ability of UK financial services businesses to operate efficiently and competitively across GCC markets.

Global events have demonstrated the value of diverse and resilient supply chains and certainty in trading relationships. This deal will strengthen the UK partnership with the GCC, bringing down barriers to trade and granting stability to businesses in the UK and in the Gulf.

Unlocking global growth potential

The GCC represents one of the UK’s most important economic and strategic partners. Total trade between the UK and the GCC was already worth £53 billion in 2025, making the GCC equivalent to the UK’s tenth largest trading partner (ONS). The GCC has a growing population of over 62 million people^{[footnote 11]}.

The GCC is a region that is transforming rapidly. GCC countries are implementing ambitious national development strategies, including Saudi Arabia’s Vision 2030 and the UAE’s Centennial Plan 2071, focused on:

• economic diversification
• infrastructure
• investment
• clean energy
• digital transformation
• enhanced health and education services

As these economies diversify, demand for high-quality goods and services is set to surge across sectors such as healthcare, education, fintech, artificial intelligence (AI), advanced manufacturing and clean energy. Our FTA will help UK businesses to benefit from the huge opportunities presented by this rapid change.

Unleashing investment into the UK

The GCC countries are significant global investors, home to 4 of the world’s top sovereign wealth funds representing over $3.4 trillion of capital (TheCityUK). The UK is already a major destination for this investment, from iconic infrastructure like Heathrow airport to British retail giants.

We enjoy strong two-way investment ties with Gulf Arabian countries. Total bilateral foreign direct investment (FDI), portfolio, derivatives and other investment assets and liabilities between the UK and Gulf Arabian countries – which include the GCC nations, as well as Yemen and Iraq^{[footnote 12]} – amounted to £485 billion in 2024^{[footnote 13]}. This agreement gives investors on both sides the confidence to go further. The FTA will ensure that:

• investment is protected
• disputes are resolved transparently
• projects in both regions have the certainty they need to succeed

This is a deal that will help to cement the UK’s reputation as one of the best countries to invest in anywhere in the world, unlocking capital to support our infrastructure, innovation and future industries.

An agreement that delivers growth

We are pursuing quality deals that back British business and support the government’s central mission: raising living standards and putting more money in people’s pockets. These are the real-world benefits of a focused trade policy that works for the whole country.

We have worked tirelessly to address the issues that businesses have told us are holding them back from growing their trade with the Gulf. UK companies, from major manufacturers and financial services businesses to universities and clean technology innovators, have championed the potential of this agreement. They see the GCC as a high-growth region where demand for UK expertise is rising, and where better market access and regulatory cooperation can unlock real commercial value. The Confederation of British Industry, British Chambers of Commerce, and leading sectoral groups like TechUK have underlined the strategic importance of this deal, calling for an ambitious agreement that helps UK businesses compete on a level playing field.

This FTA delivers for British businesses of every size and in every sector. The agreement will reduce tariffs and ensure simple and efficient customs, with a clear commitment to clear goods within 48 hours (6 hours for perishable goods), provided that all requirements are met. It will:

• provide certainty for services, businesses and investors
• boost regulatory transparency
• support digital trade

The deal delivers on our Industrial Strategy with benefits for businesses across priority sectors, from tariff cuts on medical equipment to stronger copyright protections for creative industries businesses, and enhanced business certainty for UK financial and legal services in Gulf markets.

A future-forward deal

This agreement sets a new benchmark for modern trade with the Gulf by placing innovation and inclusion at its heart. Through innovation commitments, the UK and the GCC agree to working together on future industries, such as clean energy, advanced manufacturing, and research collaboration, ensuring both sides are equipped to adapt and thrive in a rapidly changing global economy. The deal also breaks new ground on women’s economic empowerment, with provisions to support women as entrepreneurs, business leaders, and participants in international trade. By championing forward-looking cooperation and inclusive growth, this agreement strengthens the UK-GCC partnership for the future.

3. Chapter summaries

Investment

Investment plays a crucial role in the UK-GCC trade relationship, enabling us to grow our economies. The agreement includes a modern investment chapter that will help boost the strong UK-GCC investment relationship and promote the ability of businesses to invest and expand in both the UK and GCC markets.

This chapter includes comprehensive levels of protections for UK investors and their investments, ensuring they receive fair and non-discriminatory treatment when operating in GCC markets, whilst also protecting the rights of each country to regulate in the public interest. These provisions play a crucial role in protecting UK investors abroad, safeguarding British investment from arbitrary and discriminatory treatment and expropriation without compensation.

A modern and transparent Investor-State Dispute Settlement (ISDS) mechanism will provide UK investors with independent legal recourse to resolve disputes if treaty obligations are breached. The deal ensures the efficiency of arbitral proceedings by dismissing frivolous claims early and enhancing transparency in dispute settlement procedures.

The agreement has broad economic coverage and helps enhance the certainty investors need to make investments, which is crucial for economic growth. The agreement will position the UK as a top destination for GCC capital, while also providing UK investors with the certainty and legal assurance needed to make long-term commitments in GCC markets.

The UK will be terminating its existing Bilateral Investment Treaties (BIT) with Oman and Bahrain at entry into force. The UK and UAE’s BIT remains in place.

Goods market access

The GCC will fully liberalise 90% of its tariff lines in this agreement 10 years after Entry into Force. Tariffs will be removed on around 93% of UK exports to the GCC worth an estimated £580 million a year based on existing trade^{[footnote 14]}. £360 million worth of these estimated duties will be removed on day one of the agreement entering into force, offering a powerful boost to exporting British businesses across the economy. As the first FTA the GCC has ever agreed with a G7 partner, this ambitious market access package provides UK exporters with a significant competitive advantage in one of the world’s most dynamic regions.

The majority of trade will be liberalised at entry into force of this agreement. For some products, liberalisation will take place at the end of an agreed 5 or 10 year period. The GCC is a customs union arrangement that applies a common external tariff of 5% on the majority of industrial and agricultural goods. Although this tariff is intended to be applied uniformly across all member states, some maintain higher tariffs on specific goods. For those tariff lines liberalised at 5 or 10 years after entry into force, this agreement prevents GCC tariffs from increasing rates until they are removed in full.

The GCC is already equivalent to the UK’s eighth largest export market for goods, with £18 billion in exports in 2025 (ONS). This deal will make it easier for UK companies, including SMEs, to expand further. This includes in sectors critical to the UK’s Industrial Strategy, such as advanced manufacturing, life sciences and clean energy technologies.

For advanced manufacturing, the agreement delivers immediate tariff free access for turbojets and aerospace parts, which currently face 5% tariffs. It also removes tariffs on entry into force for UK exports of machinery and electronics, such as internal combustion engines and most valves and centrifuges.

UK car manufacturers will benefit significantly from the deal, with full tariff elimination for all UK exports of passenger cars. Duties will be removed in full on entry into force on 90% of current UK car exports to the GCC based on existing trade, including on hybrids. Tariffs will be removed on Electric Vehicles and electric batteries after 10 years, helping support UK supply chains as the industry shifts to net zero.

The healthcare sector is a valuable market opportunity for UK businesses. Life sciences and healthcare exports, a strategic UK strength, will gain improved market access through the elimination of tariffs. UK exports of medical devices, including surgical instruments and radiological devices, will benefit from the removal of tariffs once the agreement is fully implemented.

UK-made skincare and toiletries like perfumes and personal care products, which are often luxury and already in high demand, will benefit from the removal of duties, making it easier for both independent and global brands to grow their presence in the region.

Agri-food exports in particular will gain a competitive advantage into a region which is a net-agricultural importer. UK food and drink exports to the Gulf, already worth £839 million^{[footnote 15]}, stand to gain from the deal.

Products such as cheddar cheese, which currently face tariffs of up to 6%, will benefit from the immediate removal of tariffs at entry into force of the agreement. Chocolate and biscuits, subject to maximum tariffs of 15% and 10% respectively, will also receive immediate tariff liberalisation at entry into force. Scottish smoked salmon will benefit from the immediate removal of existing 5% tariffs, as will UK pet food and animal feed upon entry into force of the agreement. 

The UK will be liberalising tariffs on all current GCC exports to the UK from day one under this agreement, supporting supply chains and helping UK businesses to reduce input costs. The deal excludes pork, chicken and eggs from tariff liberalisation.

Rules of origin (RoO)

The FTA aims to support UK businesses to qualify for preferential market access under the agreement, ensuring that the UK can continue to expand its trade routes and strengthen its economic ties with the GCC.

The RoO chapter will specify the criteria a good or product must meet, as well as the necessary administrative requirements to benefit from preferential tariffs in the FTA. By prioritising rules of origin that businesses across the UK can comply with, this chapter will unlock preferential tariffs making UK goods more competitive in the GCC, facilitating more UK exports and supporting UK growth. The rules of origin will support key exports from across the whole of the UK, including on automotives, chemicals, machinery and electronics.

The provisions secured in this chapter ensure that businesses can use existing supply chains. This means that British producers and manufacturers will be able to continue to source some of their ingredients and materials from other countries, while still qualifying for reduced tariffs when exporting the finished good to the GCC. This chapter sets out that only genuinely British or GCC goods can access preferential tariffs.

The rules of origin specify that a product must either be wholly obtained or significantly transformed through processing in the UK or the GCC, thereby preventing fraudulent activities such as circumvention or illegitimate competition. The chapter includes robust mechanisms for verifying compliance so that only products meeting these requirements benefit from preferential tariff treatment. These measures help maintain a level playing field for UK producers, support fair competition, and uphold the integrity of the UK’s trade regime.

As part of this chapter, the UK has secured provisions allowing UK exporters, should they wish, to complete and self-certify their own origin documentation after initial registration. This is a top ask from businesses, that can help remove the often costly and time-consuming requirements which often deter smaller firms from exporting.

Customs and trade facilitation

Under the agreement, the UK and the GCC have agreed to apply customs procedures that are simple, consistent, efficient and transparent. The agreement will reinforce the UK and GCC’s cooperation to promote trade facilitation while maintaining effective customs control.

Provisions will increase certainty for traders by helping to ensure customs laws, regulations and procedures are applied in a manner that is predictable, consistent and transparent. This chapter, alongside other goods-focused chapters in this agreement, will help incentivise trade, supporting UK growth.

Both parties have agreed measures that will ensure simplified customs procedures for traders, such as through reducing data requirements for traders fulfilling certain defined criteria. The chapter supports the adoption of digital customs procedures, which will also simplify processes and minimise costs for traders.

The parties have agreed that all goods are expected to clear customs within 48 hours, or within 6 hours for perishable goods. This is provided all requirements are met and no physical checks are required.

The chapter will also provide for transparency of customs procedures by requiring that relevant information is made available online and in English or an easily translatable format.

The UK and GCC have also agreed that businesses will have the right to request an advance ruling on tariff classification, valuation and origin, which will be issued within 90 days. This will give businesses advance notice of how their goods will be treated by customs authorities, reducing uncertainty and helping them make informed decisions.

Small and medium-sized enterprises

The deal will aim to strengthen SME participation in international trade by fostering cooperation and reducing trade barriers. Commitments from both the UK and GCC member states include enhancing transparency and improving access to critical trade-related information for SMEs, ensuring they can better navigate trade systems and processes.

This cooperation will encompass establishing contact points for SMEs for both parties, facilitating the exchange of best practices, and sharing critical trade intelligence. It will prioritise making essential trade information readily accessible online, presented in a clear and comprehensible manner tailored to SME needs. These measures are designed to empower SMEs with the tools and knowledge necessary to seize new market opportunities effectively.

Future actions may explore avenues for reducing persistent challenges faced by SMEs that the UK has identified in our Small Business Plan, such as:

• barriers to market entry
• access to finance
• regulatory hurdles

By addressing these challenges, the chapter aspires to unlock the full potential of SMEs, enabling them to leverage the UK-GCC trade deal to:

• expand their businesses
• foster innovation
• contribute to economic growth in both regions

The chapter will reaffirm the importance of SMEs as important drivers of economic dynamism and seek to position them at the forefront of the benefits gained from this milestone agreement.

Competition

The FTA will foster and protect effective competition within UK markets and the GCC countries. Effective competition ensures that markets deliver benefits to people, through lower prices and higher quality goods and services, and enables businesses to enter markets and to grow.

As a result of this FTA, both the UK and the GCC will maintain their respective competition regimes as part of a transparent regulatory environment. The chapter will uphold key aspects of competition law, such as:

• prohibitions against anti-competitive agreements
• prohibitions against abuse of dominant market positions
• effective merger control

The deal includes procedural rights provisions for UK and GCC businesses and individuals under investigation. This will protect businesses under investigation for suspected breaches of competition law, giving them certainty that the investigation will be conducted in a fair and transparent way. This includes clear knowledge and understanding of the processes and key milestones throughout an investigation.

The UK and GCC have agreed that both parties maintain operationally independent competition authorities. This means that competition authorities are free from political interference and can make impartial decisions.

Provisions in this chapter enable the UK and GCC states to maintain private rights of action in their respective legal systems. This obligation provides a route for individuals and businesses to report anti-competitive practices to the competition authority.

The chapter will also promote cooperation and enable the parties to make their competition enforcement and competition advocacy policies as transparent as possible.

Trade in services

This deal builds on the already strong services trade between the UK and the GCC. It will provide assurances that UK businesses in a range of sectors will be able to export services to the GCC within a predictable regulatory environment.

This chapter will help cement existing market access for many services sectors. Sectors benefiting from greater certainty will include legal, engineering and construction. UK businesses in sectors where the GCC make commitments will benefit from guarantees that constrain the implementation of new restrictions, such as limitations on foreign ownership or requirements to set up a base in the GCC to supply their services in the region.

For many sectors, this chapter guarantees a level of treatment for UK businesses compared to their domestic competitors, limiting discriminatory practices to promote a level playing field. This means businesses will have a greater degree of certainty that they won’t be disadvantaged when exporting to GCC markets.

With a broad range of sectors being covered by this chapter, it will also support an open trading environment for many UK business seeking to operate in GCC markets by addressing authorisation procedures, such as licence applications. It contains commitments outlining that:

• licensing processes should be fair and accessible
• associated fees should be proportionate
• information should be published online and in English

Certainty for businesses trading services increases exports. By locking in access for UK services suppliers from a range of sectors, this chapter could unlock export opportunities for UK businesses and support economic growth.

This chapter will not compromise the UK’s ability to regulate key public services, and the UK does not negotiate over its right to regulate public services.

Financial services

The FTA secures UK companies’ ability to deliver financial services to clients in GCC member states, supporting the long-term competitiveness of the UK’s  financial services sector. This will support opportunities for businesses and consumers and will underpin our future relationship and continued cooperation with the Gulf region in financial services.

This deal represents the best terms that the GCC have yet agreed on financial services. For the first time, the GCC have agreed binding commitments to protect the free flow of financial data and facilitate businesses to store and process financial data outside of the region. Unjustified and disproportionate data localisation requirements are prohibited under the deal, promoting more dynamic business models for UK businesses operating in GCC markets.

For many financial services sub-sectors, this chapter secures a standard of treatment for UK businesses on a par with their domestic counterparts. It reduces the risk of future restrictions that could impact UK business operations in GCC states in the future. This will improve business confidence when operating in the Gulf and support the growth of UK financial services exports.

The certainty provided by this deal makes it easier for UK financial services businesses, from global banks to fintech start-ups, to do business in the Gulf. The UK has agreed commitments including improving specific equity caps compared to World Trade Organization (WTO) terms. This will provide reassurance to businesses that their investments in established businesses in the Gulf are protected up to a higher level. This gives businesses greater confidence to invest more freely and to supply services in the region.

The agreement also means that UK firms can offer certain services across the region without needing to set up a local office or partner. This is a win in particular for smaller firms and start-ups looking to expand internationally in a cost-efficient and streamlined way. UK firms will benefit from improved standards for regulatory transparency for authorisation and licensing processes. The deal contains provisions ensuring UK businesses will be able to access regulations promptly, facilitating engagement with regulators on proposed new measures, and establishing greater confidence over how their applications will be handled.

The deal will also promote innovation in financial services in both UK and GCC markets. It will contain provisions enabling UK businesses to supply innovative financial services in the region on comparable terms to domestic suppliers.

Professional business services

The FTA includes a ‘Professional services and recognition of professional qualifications’ annex, where the UK and GCC will look to identify and encourage relevant bodies in the UK and GCC that have mutual interest in entering into discussions on the recognition of professional qualifications. These arrangements can streamline processes for UK professionals seeking to work in other jurisdictions by having their professional qualifications recognised in GCC countries and vice versa. They can also reduce administration, time and costs, and provide greater certainty to businesses seeking to operate abroad. Mutual recognition arrangements also help to liberalise trade, boost investment and support UK economic growth.

Through joint forums established under this FTA, UK and GCC government officials will be able to discuss issues relating to professional services and wider services commitments.

The annex will not affect the autonomy of UK regulators to set, maintain and assess against the standards for their professions.

Telecommunications

This is one of the UK’s strongest telecoms agreements to date, introducing provisions that enhance liberalisation, competition and fairness in the telecoms market. It also represents the GCC’s most ambitious telecoms commitments, including measures never previously agreed.

The agreement guarantees UK businesses fair and regulated access to GCC telecoms networks and services, supported by stronger legal and regulatory protections. It creates a more transparent and predictable business environment by setting clear rules for licensing, access, interconnection and allocation of scarce resources.

In this agreement, both the UK and GCC have agreed that regulators and major suppliers will not discriminate against overseas suppliers, making it easier for suppliers to obtain authorisation or a licence under more favourable terms and conditions. The agreement also commits both parties to ongoing collaboration on innovation and future developments, maintaining alignment with international standards.

Consumers will also benefit from this deal, through:

• cooperation on the transparency of roaming rates
• the ability to port their number between operators in the specific GCC market where it is located
• stronger guarantees for the protection of private data

Digital

The FTA will remove barriers to digital commerce, support innovation, and ensure that UK businesses, especially SMEs, can trade more efficiently and securely across borders.

In this chapter, the UK and GCC have agreed to facilitate the free flow of data between the UK and GCC while maintaining the UK’s high standards of personal data protection. For the first time ever in a deal with the GCC, this agreement prohibits unjustified data localisation, helping businesses operate more efficiently across borders.

The chapter makes trading for businesses, large and small, simpler and faster by obligating both parties to accept electronic trade documents and promote paperless trading. It will also encourage the use of electronic Bills of Lading and other commercial trade documents, which could further reduce costs.

Open internet access is protected, with commitments to prevent discriminatory practices like blocking or throttling online content. The deal also guards against forced disclosure of source code or cryptographic information. This protection will give UK technology businesses greater confidence to expand into the GCC.

The agreement strengthens online consumer protection, ensuring digital shoppers enjoy the same rights as those on the high street. It also promotes cooperation between consumer protection bodies in tackling harmful online practices.

A permanent ban on customs duties for electronic transmissions will provide certainty for digital goods and services trade.

The deal also establishes a framework for cooperation on emerging technologies, such as AI, and on responsible innovation through shared governance and international best practices.

Mobility

The agreement will enhance business mobility between the UK and the GCC, supporting trade in services, goods and investment activities. UK businesses and professionals will benefit from the most ambitious mobility commitments ever granted by the GCC to a trading partner. This includes guaranteeing access to visas for a wide range of business persons and improved length of stay commitments, providing increased certainty on the level of access available.

It guarantees a level of access for UK business persons seeking to undertake business activities, transfer to another branch of their business, or deliver services under contract in the GCC across a wide range of sectors.

Businesses and professionals will also benefit from comprehensive commitments improving the consistency and transparency of visa requirements and processes.

The UK has also secured commitments to remove burdensome administrative processes for professionals providing services under contract in the UAE. The deal will also prevent the GCC from introducing further economic need testing requirements or numerical restrictions for their visa regimes, providing more certainty for UK professionals and guaranteeing that these practical barriers will not be introduced in the future.

This chapter will create the space for the UK and GCC to work together to support business professionals, entrepreneurs and workers to fully access and benefit from the opportunities created by this agreement.

Through enabling business professionals to fully engage in trade and the economy, countries can realise their potential and boost economic growth.

Intellectual property

The FTA covers all major intellectual property (IP) rights, including:

• copyright
• trade marks
• designs
• patents and data protection
• trade secrets
• geographical indications (GIs)
• cooperation and enforcement provisions

This offers UK businesses greater certainty and confidence to operate in GCC markets, supports consumer interests by enabling access to high-quality, safe and innovative products, and by raising awareness of IP rights and online safety.

The chapter locks in our shared commitments in numerous international IP treaties and the WTO Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement, which is the international baseline of IP protection. The deal will also go further with ‘TRIPS-plus’ commitments, including provisions on patents extension for pharmaceuticals and exclusive use of pharmaceutical test data, which were novel for GCC countries.

These are important provisions for UK stakeholders as they aim to compensate patent holders for time lost waiting for regulatory approval (market authorisation), after their patent protection has expired. It will also encourage GCC countries to accede to key international treaties such as the World Intellectual Property Organisation (WIPO) Copyright Treaty.

A major achievement is the inclusion of 32 detailed enforcement articles which will cover civil, criminal, border and digital enforcement. The GCC had some IP legislation in place including enforcement, improving these standards was a priority for UK businesses. These provisions improve access to justice, including for SMEs, and enable action against online infringement. They reflect a holistic approach, combining judicial and civil mechanisms and voluntary industry initiatives.

The agreement will also promote cooperation through a dedicated UK-GCC IP and government procurement sub-committee, offering a platform to influence GCC’s future IP policy.

This chapter will benefit key UK sectors such as creative industries, life sciences, technology and food and drink, by encouraging innovation while maintaining a fair balance with public interest. It will strengthen the UK’s global IP leadership without compromising its domestic IP framework or international positions.

This agreement goes far beyond existing GCC precedent in all areas of IP protection and enforcement.

Core text

The core text chapters will provide an effective legal and institutional architecture for the agreement. This will ensure that, once in force, the UK-GCC FTA continues to support economic growth and the expansion of trade and investment between the UK and the GCC.

The ‘Initial provisions and general definitions’ chapter will provide for the establishment of a free trade area between the UK and the GCC and an appropriate set of legal relationships between the FTA and other international agreements. We have also provided for the treaty to apply to all 4 constituent nations of the UK, taking into account the effects of the Windsor Framework. For the first time in any UK FTA, under the Geographical Scope article, the Crown Dependencies will benefit from services coverage.

‘General exceptions’ will allow the UK and the GCC to take measures that would not otherwise conform with the commitments made in the agreement, to serve the legitimate public policy objectives it sets out. These flexibilities will protect domestic policy and preserve the UK and the GCC’s rights to regulate in the public interest. The chapter will incorporate the general exceptions found within the WTO’s General Agreement on Tariffs and Trade and the General Agreement on Trade in Services, and a dedicated exception relating to national security. It will also provide policy-making discretion in matters of taxation and macroeconomic management, and a provision recalling the exclusions and exceptions elsewhere in the agreement applicable to the NHS.

‘Administrative and institutional provisions’ will create a joint committee that is responsible for overseeing the agreement, as well as sub-committees on:

• trade in goods
• services and investment
• intellectual property
• government procurement
• sanitary and phytosanitary measures

The chapter will set out the powers and functions of the joint committee, as well as decision-making and administrative processes for it and other bodies established under the agreement. The joint committee and sub-committees have an important role to play in ensuring the agreement can continue to drive economic growth in the UK and the GCC in future years.

The ‘Transparency’ chapter will commit the UK and the GCC to a number of transparency principles that are mutually beneficial and aim to make relevant information open and available to the users of the agreement. This will enable businesses, and other stakeholders to use it with ease and therefore access the opportunities it creates.

‘Final provisions’ will set out processes for the entry into force, amendment, and, if appropriate, termination of the agreement. It will also provide a mechanism for the agreement to be extended further to the Crown Dependencies and Overseas Territories. These provisions facilitate smooth implementation, reduce uncertainty and help sustain trade liberalisation over the lifetime of the agreement.

Dispute settlement

The full economic benefits of the FTA can only be realised if the terms of the agreement are implemented and complied with. The ‘Dispute settlement’ chapter will establish a robust state-to-state dispute settlement mechanism for resolving certain disputes, should they arise under the agreement.

The UK and GCC have agreed to a modern and comprehensive dispute settlement mechanism that enables trade disputes to be managed consistently, fairly, transparently and in a cost-effective and timely manner. This mechanism strikes a balance between strong enforcement measures and the promotion of dispute prevention and early resolution.

This chapter reflects a joint commitment by the UK and GCC to uphold the agreement, safeguarding the economic benefits of the deal and fostering UK economic growth by providing greater certainty for businesses. The inclusion of a robust dispute settlement mechanism will incentivise adherence to the agreement and enable the UK to enforce certain commitments agreed upon within the FTA.

General Collaboration and Sustainable Development

The agreement will contain a ‘General Collaboration and Sustainable Development’ chapter that will enhance cooperation between the UK and GCC on several shared priority areas. The UK has secured commitments in this chapter that go further than anything GCC countries have agreed before in key areas such as anti-corruption and consumer protection.

This chapter will address barriers, increase transparency and foster collaboration on issues like animal welfare, innovation, anti-corruption, and other areas. The chapter affirms International Labour Organisation commitments and includes commitments on non-derogation and the enforcement of labour laws, which will support UK and GCC businesses by promoting fair competition. This goes further than the GCC has agreed with any other partner before. These provisions will complement our domestic growth agenda and our Make Work Pay plan, which contribute to creating the right conditions for long-term sustainable, inclusive and secure economic growth.

This chapter will help us reinforce standards on anti-corruption globally and ensure appropriate levels of transparency. It includes commitments that foster women’s economic empowerment and promotes women’s full access to the benefits of our FTAs, which furthers our efforts to promote gender equality globally.

Additionally, it includes provisions that recognise our right to regulate to meet environmental objectives, as well as commitments to endeavour to ensure that environmental law and policies provide for and encourage environmental protection. The chapter also contains commitments on not reducing protections provided in environmental laws and the effective enforcement of environmental laws, which could support UK and GCC businesses by adding regulatory certainty.

This chapter has been negotiated between the UK and all GCC member states. The UAE has not taken commitments on labour and environment in the FTA. The UK will continue to discuss these issues bilaterally with the UAE.

Anti-corruption

This agreement will contain the first anti-corruption provisions ever to be agreed by the GCC in an FTA. The UK and GCC will reaffirm our joint commitment to adhering to international obligations on bribery and corruption in the United Nations Convention against Corruption (UNCAC). The agreement will support continued dialogue between the UK and GCC on anti-corruption.

Consumer protection

The agreement includes consumer protection provisions that provide consumers protection from unfair, deceptive, fraudulent and misleading commercial practices and recognise the importance of having access to remedy or redress if needed.

Both parties have also agreed provisions that promote cooperation between UK and GCC on consumer protection, including the enforcement of consumer protection laws and regulations and in relation to online consumers.

Animal welfare and anti-microbial resistance

For the first time, the GCC has agreed provisions on animal welfare and anti-microbial resistance in a trade agreement.

The deal will recognise that animals are sentient beings. This includes commitments to increased cooperation between the UK and GCC as well as working together on implementing animal welfare standards.

This deal upholds the UK’s high animal welfare standards, and nothing in the deal will change how the UK protects animal welfare. The deal affirms the parties’ rights to regulate on animal welfare and to set their respective policies and priorities for the protection of animal welfare. The deal also creates structures that will enhance cooperation between the parties on animal welfare.

The deal will recognise the serious global threat that anti-microbial resistance poses to human and animal health. The UK and GCC will commit to exploring initiatives that can address this threat by reducing the use of antimicrobial agents.

Environment

The GCC has gone further on environment provisions in this deal than it has with any other country before. This includes provisions that recognise our right to regulate to meet environmental objectives, and commitments on providing for and improving levels of environmental protection. The chapter also contains commitments on not reducing protections provided in environmental laws and on the effective enforcement of these laws, which could support UK and GCC businesses by adding regulatory certainty.

Both the UK and GCC have also affirmed their commitment to implement multilateral environmental agreements to which they are party to. We have agreed a standalone article on climate change, including affirming our commitments to address climate change, particularly under the Paris Agreement. We have agreed cooperative provisions covering an indicative range of environmental and climate issues, such as:

• the transition to clean energy technologies
• reducing air pollution
• fisheries
• sustainable forest management
• the circular economy

Innovation

In recognition of the key role innovation plays in economic growth, the UK and the GCC have agreed to cooperate on innovation and trade. This cooperation can include any matter relating to innovation and trade, including:

• clean energy and other innovation-intensive sectors and technologies
• supply chain resilience
• regulatory approaches

In this cooperation the UK and GCC may share best practice, review relationships and explore ways innovation can promote trade and investment and vice versa. This can include the involvement of industry, academia and non-government experts and stakeholders in UK-GCC dialogue.

The provisions will ensure that the FTA is future-proofed and responsive to trade challenges and opportunities arising from innovation.

Trade and workforce (labour)

The GCC has gone further on labour in this deal than it has with any other country before. The FTA will set out the UK’s and the GCC’s shared commitment to building mutually supportive trade and labour policies, including through reaffirming core international obligations. We have agreed provisions on non-derogation and the effective enforcement of labour laws which will support UK and GCC businesses by promoting fair competition. It will maintain our regulatory sovereignty and affirm our inherent right to determine our own level of domestic labour protection consistent with international obligations.

The FTA will also facilitate further cooperation on key labour issues, such as by sharing information on best practices in relation to labour laws, enforcement and compliance. It will also provide a role for the public in the implementation of labour provisions.

Women’s economic empowerment

Provisions have been agreed that set out the UK and the GCC’s joint intention to ensure that the FTA supports women’s economic empowerment, one of the first times that the GCC has signed up to substantial provisions on this issue. In these provisions the UK and GCC commit to enhancing women’s access to the full benefits and opportunities of the FTA as workers, business owners, entrepreneurs and consumers. The FTA will support efforts to address issues such as discrimination and the barriers faced disproportionately by women in trade, such as lack of access to markets and business networks.

Through this agreement, the UK want to harness the potential for trade to support the greater participation of women in the economy of both parties. The deal aims to promote and implement cooperation activities which will provide an enabling environment for women to increase their business ownership and participation in the labour market. These activities can include sharing experiences, best practices and data to overcome systemic barriers for women in international trade.

Cooperation on gold

The UK values strong cooperation with our international partners on the gold trade, which will be a priority theme at the Illicit Finance Summit.

Through this FTA, we have agreed provisions that highlight the importance of collaboration between our respective authorities to ensure that trade in precious metals aligns with leading international standards and best practice.

These provisions reinforce the significance of robust standards in the gold trade, helping ensure that precious metal trade is conducted in a high-quality, ethical and responsible manner.

Government procurement

The ‘Government procurement’ chapter establishes legally binding commitments with GCC member states Bahrain and the UAE. It will provide UK businesses with guaranteed access to their public procurement markets under fair, transparent and non-discriminatory conditions.

The chapter reflects key principles of the WTO’s Agreement on Government Procurement, which no GCC member state is currently a member of. It requires the use of open or selective tendering for contracts covered by the agreement, with limited tendering allowed only under specific conditions. Each party’s market access schedule lists the entities, sectors and contract thresholds to be covered by the chapter, with the UK’s schedule including public procurement by central government bodies, certain public utilities and autonomous public authorities.

For the first time in a GCC FTA, standalone provisions are included on SME participation, environmental, social and labour considerations and anti-corruption in public procurement. These measures aim to reduce administrative burdens, ensure prompt payment and prevent fraud and conflicts of interest. Importantly, the agreement includes a review mechanism requiring the remaining GCC member states to assess their participation in the chapter within 2 years, with a view to future negotiations.

The UK’s commitments under the chapter are consistent with our domestic procurement regime and maintain exclusions for sensitive areas such as NHS procurement of health and social care services and national security. This chapter marks a significant step toward aligning the Gulf region with international procurement standards and opens new opportunities for UK businesses to compete for public contracts in the Gulf region.

The UAE’s commitments under the agreement secure the first legally guaranteed access to its public procurement market for UK goods, services and suppliers. UK businesses will benefit from access to all procurement opportunities covered by the agreement for federal government departments that adopt the UAE’s new national digital procurement platform. The deal therefore provides coverage of UAE federal government bodies comparable to their most ambitious bilateral agreements and provides a mechanism for coverage to improve further over time.

The UAE has also provided a legally binding guarantee allowing UK suppliers to apply for certification as ‘In-Country Value’ suppliers, which can grant a competitive advantage of up to 25% in the evaluation of public contract bids. Additionally, the UAE has issued a written commitment recognising the UK’s right to request further negotiations should the UAE extend greater procurement access to another country’s suppliers that is not already available to UK businesses.

Bahrain’s commitments include access to high-value contracts in the transport and infrastructure sectors, exceeding its previous FTA precedents and protections for UK suppliers under its In-Country-Value scheme. UK SMEs established in Bahrain will benefit from a 10% price preference and simplified procurement processes.

Sanitary and phytosanitary (SPS) measures

The FTA will facilitate trade while ensuring the protection of human, animal and plant health.

The chapter will also protect our regulatory autonomy to set our own independent standards, ensuring the UK can continue to uphold our high level of protection for human, animal and plant health.

The chapter enhances transparency of SPS requirements, making measures accessible for exporters by requiring the parties to provide on request SPS measures in English or in a machine-translatable format. It works towards speeding up the process of acquiring export health certificates and reducing related costs.

Provisions on regionalisation will provide greater transparency, clarity and timeliness when the UK and GCC states put in place measures to control disease and pest outbreaks. This will help avoid unnecessary trade restrictions and facilitate the safe movement of goods between the UK and GCC where disease or pests are present but safely managed.

Technical barriers to trade (TBT)

The FTA will help us remove or reduce TBT for goods, while upholding the safety and quality of products on the UK market. It will also help us identify and address further barriers in the future.

The UK and the GCC have made a strong commitment to making regulations in line with international standards. This will facilitate trade by making it easier for exporters to comply with regulations.

The agreement contains provisions to increase transparency. It provides that regulatory information shall be published online and summarised in English upon request. This includes proposals for technical regulations and details of testing (conformity assessment) procedures.

The UK and the GCC will endeavour to eliminate duplicative testing requirements, including duplication between GCC-wide and member state testing.

Trade remedies

Trade remedies can protect UK domestic industries from import surges and unfair trading practices, such as the dumping of goods or subsidised imports that are causing or threatening to cause harm.

The FTA includes a comprehensive ‘Trade remedies’ chapter that aligns with the ambitious goals of the trade agreement, fostering economic growth while safeguarding domestic industries. Provisions promote transparency and proportionality in the application of trade remedies, ensuring that measures are both effective and justified.

Moreover, the agreement will include a bilateral safeguard mechanism, which will allow temporary safeguards to be applied to protect UK industry from serious injury or threat of serious injury caused by increased imports under the FTA. Investigations to apply bilateral safeguard measures can be launched if significant increases in imports caused by tariff liberalisation threaten or inflict serious injury to domestic industries. This safeguard mechanism will serve as a tool to rebalance trade when necessary, providing reassurance and a temporary safety net to businesses, supporting industry adaptation to changing market conditions.

4. Next steps

Now that we have concluded negotiations, the UK and the GCC will work together to finalise the legal text of the FTA and produce a usable and legally binding treaty. We will end this process by signing the completed treaty text.

Following this, the UK’s independent Trade and Agriculture Commission (TAC) will be commissioned to scrutinise the FTA and produce a report on whether the measures within it are consistent with the maintenance of UK statutory protections in relation to animal and plant health and life, animal welfare and the environment.

Informed by the TAC’s advice, as well as advice produced jointly by the Food Standard Agency and Food Standards Scotland, the government will lay its own report under section 42 of the Agriculture Act 2020 (s42 report). The s42 report will cover the same topics as the TAC report, with the addition of analysis covering the maintenance of UK statutory protections in relation to human life or health.

This deal will be subject to the usual pre-ratification scrutiny procedures under the Constitutional Reform and Governance (CRaG) Act.

Any legislative changes required to give effect to the FTA will need to be scrutinised and passed by Parliament in the usual ways before ratification of the agreement can take place. Legislation necessary to implement the agreement will be brought forward and duly scrutinised by Parliament, when Parliamentary time allows.

Entry into force will take place once both the UK and GCC member states have completed their ratification processes. Once the deal has taken effect, businesses and citizens from across the UK will be able to capitalise on the benefits of the agreement.

The government will help businesses to benefit from the deal. Working with the FTA utilisation team and export services, we will help businesses understand:

• what has been agreed
• what it means for their sector
• how they can benefit
• new export opportunities

We will also work with trade associations, chambers of commerce and regional bodies to build their understanding of the agreement. This will help them support their members to access its provisions, particularly on services, investment and digital trade.

1. DBT Modelling. ↩

2. Figures converted from US$ to UK£ using Bank of England average spot exchange rates. ↩

3. UNCTAD goods and services BPM6 2024. ↩

4. DBT Global Trade Outlook 2025. ↩

5. DBT Modelling. ↩

6. DBT Modelling. ↩

7. DBT Modelling. ↩

8. Duty estimates are based on GCC import figures from ITC Trademap, using 2024 data for all countries except Oman, which uses 2023 data. Duties are calculated using the GCC common external tariff and country‑specific tariffs as of 2022. For countries where HS6-level data is used (Oman, Qatar and the UAE), the lowest MFN tariff within the HS6 subheading is applied to provide a conservative estimate. ↩

9. DBT Global Trade Outlook 2025. ↩

10. DBT Modelling. ↩

11. IMF World Economic Outlook April 2026. ↩

12. Yemen and Iraq are not a part of this FTA. ↩

13. ONS Geographical breakdown of the UK international investment position, The Pink Book. Gulf Arabian in this instance refers to GCC members states, in addition to Yemen and Iraq. Due to data limitations, it is not possible to calculate the value of GCC assets in the UK collectively. ↩

14. Estimates are based on GCC import figures from ITC Trademap, using 2024 data for all countries except Oman, which uses 2023 data. Duties are calculated using the GCC common external tariff and country specific tariffs as of 2022. For countries where HS6-level data is used (Oman, Qatar and the UAE), the lowest MFN tariff within the HS6 subheading is applied to provide a conservative estimate. ↩

15. HMRC Overseas Trade Statistics December 2025. ↩