Director general Marco Forgione responds to news that the UK has struck a deal with the Gulf Cooperation Council (GCC) on a trade deal worth a reported £3.7bn per year.
As director general of the Chartered Institute of Export & International Trade, I warmly welcome this agreement.
A comprehensive agreement will unlock substantial new markets for British exporters, particularly in sectors such as advanced manufacturing, financial services, green technology, healthcare, and professional services.
By reducing tariffs, streamlining regulations, and enhancing cooperation on standards and investment, the deal will drive sustainable growth, create high-value jobs across the UK, and strengthen supply chain resilience for both sides.
Clear and practical benefits
Practical benefits are clear and tangible. For instance, UK food and drink exporters whose sales to the GCC already exceed £625m annually will see tariffs of between 5% and 25% removed or sharply reduced, enabling premium British products like Scotch whisky, speciality cheeses, and confectionery to compete more effectively in high-growth markets such as the UAE and Saudi Arabia.
Similarly, manufacturers of renewable energy components, including wind turbine parts and energy-efficiency technologies, would gain better access to the GCC’s ambitious diversification programmes, supporting the region’s transition to net zero while creating export wins and jobs in UK regions with strong green engineering clusters.
Major infrastructure
As a result of the Iran conflict, GCC nations are investing in major infrastructure programmes to provide alternative trade routes to the Strait of Hormuz. This deal will help the UK’s world leading infrastructure, engineering and professional services sectors access to these major projects.
In services, British financial, legal, consulting, and education providers would benefit from improved market access, mutual recognition of qualifications, and easier business mobility, allowing firms to bid more competitively for major infrastructure and public-sector projects across the six GCC nations.
Automotive and pharmaceutical exporters would likewise enjoy tariff savings and simplified customs procedures, lowering costs and accelerating delivery times.
It is clear that GCC economies are investing ambitiously in diversification and innovation.
A modern UK-GCC partnership positions British businesses at the heart of that transformation delivering mutual prosperity, with modelling projecting up to £3.7bn will be added to UK GDP.
We will work with businesses to ensure that they are able to best take advantage of the benefits of this deal.
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