On 20 May 2026, Sir Chris Bryant announced that a free trade agreement had been concluded 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 (KSA), and the United Arab Emirates (UAE).   

Key highlights from the FTA for the UK

 Goods Market access

• Tariffs will be removed on around 93% of UK exports to the GCC worth an estimated £580 million a year based on existing trade with £360 million worth of these estimated duties will be removed on day one of the agreement entering into force. 
• 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. This is of direct benefit to aerospace businesses concentrated in the Midlands and across the wider UK supply chain
• 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
• Life sciences and healthcare exports will gain improved market access through the elimination of tariffs. UK exports of medical devices, including surgical instruments and radiological devices will also benefit from the elimination of tariffs

Rules of Origin

• A product that is either wholly obtained or significantly transformed through processing in the UK will benefit from preferential tariffs. 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
• UK exporters, should they wish, will be able complete and self-certify their own origin documentation after initial registration

Customs procedures

•  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.
• 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.

Financial Services

• There is agreement 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
• UK firms can offer certain services across the region without needing to set up a local office or partner

Professional Services

• 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

Telecoms

• 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

Data 

• 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. 

Mobility

• 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.

Investment 

•  An Investor-State Dispute Settlement (ISDS) mechanism will provide UK investors with independent legal recourse to resolve disputes if treaty obligations are breached

Key highlights from the FTA for the GCC

The agreement is reciprocal in design, and the commercial and investment benefits flowing to the Gulf are considerable including:

• The UK will be liberalising tariffs on all current GCC exports to the UK from day one. The deal excludes chicken and eggs from tariff liberalisation
• A product that is either wholly obtained or significantly transformed through processing in the UK or the GCC will benefit from preferential tariffs
• 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.
• 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.
• 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.This agreement will protect the free movement of financial data flows between the UK and GCC, enabling GCC businesses to store and process financial data outside the region. 

Next Steps

The conclusion of negotiations marks the beginning, not the end, of the formal legal process. A number of procedural stages remain before the agreement takes legal effect. The UK and the GCC will work together to finalise the legal text of the FTA and produce a usable and legally binding treaty. Entry into force will take place once both the UK and GCC member states have completed their ratification processes.
 
Businesses should begin preparing now by reviewing current tariff classifications, assessing rules of origin compliance, and identifying the specific chapters most relevant to their sector. The UK government has indicated it will work with an FTA utilisation team and export services to help businesses understand what has been agreed, what it means for their sector, how they can benefit, and what new export opportunities exist. 

How we help

With 9 offices across the GCC and the UK, Trowers & Hamlins LLP provides cross border corporate and commercial advice to clients on trade and investments between the GCC and the UK. With a history in the Middle East going back to the 1960s, we [Trowers & Hamlins LLP] are well placed to support clients on the legal and commercial issues that arise on investing and conducting business in the GCC and the UK.