The UK is closer to finalising a trade agreement with the Gulf Cooperation Council, which includes Saudi Arabia, Qatar, UAE, Kuwait, Bahrain and Oman, Chancellor of the Exchequer Rachel Reeves said on May 20.

Britain enjoys good relations with modern Persian Gulf Arab states, with the UK heavily integrated into the regional economies, including in hotspots like Dubai, Doha and Riyadh. Following the historic deals with US President Donald Trump earlier this May, the UK hopes to double down on previous deals with the Americans and, latterly, the EU on May 19 for further deals. 

Reeves told the BBC that this would be the second major trade agreement for the government, which continues to strengthen Britain's trade relations with other countries following Brexit, adding that economic growth in the UK would be boosted through recent trade agreements with the US, Europe and India.

The minister stated that Britain is "in a better position than any other country in the world in terms of agreement conditions, and the first and best agreement so far is with America, and we reached the best agreement with Europe of any non-EU country, as well as the best trade deal with India," adding that her country is not considering trade negotiations with China.

The GCC Secretariat General told Al Eqtisadiah last September that Gulf states and Britain had made notable progress in most chapters of the free trade agreement, with goods markets, investment and financial services taking the longest time in negotiations.

Free trade negotiations between the two sides aim to reduce customs duties and support mutual investment. The agreement would give British investors greater access to the Gulf market and boost innovation and digital trade by enhancing opportunities for innovative business projects in emerging technologies, artificial intelligence, and cybersecurity, supporting digital transformation efforts in the Gulf.

In early April, UK Foreign Secretary David Lammy said the Labour government was continuing discussions with Gulf states regarding the trade agreement, which began under the previous Conservative administration.

The United Kingdom sought in November to conclude a modern trade deal with Gulf states as a priority to deliver real value to businesses on both sides, according to the official spokesperson for the Department for Business and Trade, who told local media that there were outstanding provisions in the free trade agreement requiring further negotiation.

He indicated that trade cooperation between the parties would increase bilateral trade by 16%, adding £8.6bn ($10.9bn) annually to the British economy in the long term.

The UK’s push to sign deals with Arab monarchies follows that of US President Donald Trump earlier this month, where on a whirlwind tour of the region he signed trillions of dollars in deals with Saudi Arabia, Qatar and the United Arab Emirates.

Saudi Arabia and the UAE recently committed $6bn for development projects. Prime Minister Mohammed al-Sudani has strengthened ties with Riyadh, culminating in this weekend’s Arab League Summit in Baghdad.

In his visit to Qatar, the US President was gifted a luxurious 747 Boeing jet and given a lavish reception in the United Arab Emirates.