RIYADH: The UK-Gulf Cooperation Council free trade deal is set to be worth far more than the anticipated $5 billion boost to Britain’s economy, Arab News has been told, as the two economies become increasingly interlinked.
The deal, signed on May 20, is the first such agreement between a G7 nation and the GCC, and is seen as a structural bet on Gulf economic transformation and a precedent-setter for how the bloc will engage with major economies for decades to come.
Combined with the India FTA signed by the UK in July, the deals are expected to add more than £8 billion ($10.7 billion) annually to British GDP relative to 2040 forecasts, marking a significant shift in the country’s post-EU trade architecture.
Beirut-based economist and academic Jassem Ajaka told Arab News that the asymmetry of need works in the deal’s favor, saying: “For the UK, the pact opens a vital gateway to GCC markets — a strategic priority following its departure from the EU.
“For the Gulf states, securing a deal with one of the world’s largest economies promises to deepen bilateral investment and accelerate capital flows in both directions.”
