The UK’s efforts to expand trade and investment with the Gulf region took a significant step this week.
Trade Secretary Jonathan Reynolds and Trade Policy Minister Douglas Alexander are meeting with Gulf Cooperation Council (GCC) leaders in Riyadh to strengthen economic ties and discuss new trade agreements.
UK’s Strategic Push for Global Trade Growth
As part of a wider strategy to drive economic growth, the UK government is focusing on strengthening trade relations with key international partners.
The Gulf Cooperation Council, which includes six countries—Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates—represents a crucial region for the UK’s post-Brexit trade ambitions.
The UK’s trade relationship with the GCC is already valued at £57 billion, and the potential for further growth is vast.
With trade talks expected to deliver a high-quality free trade agreement (FTA), Jonathan Reynolds emphasised the importance of this visit, stating,
“Economic growth is this government’s driving mission, and boosting trade and investment with some of the world’s biggest economies is crucial to that.”
This visit follows a government announcement earlier this year that a GCC trade deal could potentially add £1.6 billion to the UK economy.
Investment Opportunities in the Gulf Region
The GCC is also a vital source of investment for the UK, with a £19 billion investment relationship as of 2021. UK businesses across various industries, including technology, renewable energy, and financial services, have seen rapid growth in the region, creating jobs and innovation opportunities on both sides.
Minister Douglas Alexander highlighted the mutual benefits, stating,
“We are excited about the opportunities this vibrant region has to offer UK businesses and consumers.”
British companies have already begun to capitalise on these opportunities. For instance, Northern Ireland-based company Kiverco has secured multimillion-pound contracts to export recycling machinery to Saudi Arabia, a deal supported by UK Export Finance (UKEF).
Similarly, UK fintech companies like Revolut view the GCC as a game-changer for expanding their operations, particularly in emerging sectors like AI, open banking, and blockchain.
UK-GCC Trade Figures |
Value |
|---|---|
| UK-GCC Trade Relationship | £57 billion |
| GCC Investment in the UK | £19 billion |
| Potential Economic Boost from Trade Deal | £1.6 billion |
UK-Gulf Trade: A Focus on Innovation and Job Creation
The trade discussions also come at a critical time, with the UK’s International Investment Summit just around the corner. The summit aims to position the UK as a prime investment destination, showcasing its leadership in industries such as life sciences, creative industries, and technology.
As British businesses expand in the Gulf, investment from the region is expected to further support job creation and innovation in the UK.
Minister Alexander’s visit to Oman will reinforce the UK’s commitment to building stronger partnerships across the region. UK foreign direct investment in Oman alone accounts for more than half of the country’s total, driving substantial job growth and development in both nations.
Driving Future Trade Success
As the UK looks to establish itself as a global leader in trade and innovation, securing a robust trade agreement with the Gulf states is a priority.
The forthcoming deal is expected to provide greater access for UK businesses to a booming market while giving British consumers more choices in high-quality goods and services.
Through its proactive approach, the UK government is solidifying its status as a competitive player on the international stage.
The upcoming International Investment Summit and ongoing GCC trade talks demonstrate the UK’s determination to foster economic resilience and growth.
Sources: THX News, Department for Business and Trade, The Rt Hon Douglas Alexander MP & The Rt Hon Jonathan Reynolds MP.
