As the UK government intensifies its focus on economic growth, international trade and investment partnerships have emerged as a critical component of its strategy. In this context, the Gulf Cooperation Council (GCC) countries-Saudi Arabia, Bahrain, Kuwait, Oman, Qatar, and the UAE-represent key partners in the UK’s efforts to drive mutual prosperity. With bilateral trade reaching all-time highs and increasing collaboration across various sectors, the UK and the GCC are poised to strengthen their economic ties in ways that benefit both regions.

Under the leadership of British Prime Minister Keir Starmer, Chancellor Rachel Reeves, and the newly appointed Business and Trade Secretary, economic growth has become the top priority for the UK government. The UK’s Department for Business and Trade sits at the core of this new approach, with responsibilities spanning across business promotion, inward investment, trade policy, and export finance. The UK recognizes that achieving its growth ambitions requires forging robust international partnerships. As such, the GCC’s strategic importance to the UK has grown substantially in recent years.

The UK’s outward-facing trade policy focuses on leveraging its longstanding political, commercial, and cultural relationships with key partners, including Saudi Arabia and other GCC countries. With a shared commitment to fostering economic prosperity through increased trade and investment, these ties are underpinned by priority sectors such as education, healthcare, clean energy, technology, and infrastructure.

One of the most notable developments in the UK-GCC relationship has been the remarkable growth in bilateral trade. In 2023, UK-Saudi bilateral trade reached an all-time high of £17.3 billion ($22.7 billion), a testament to the increasingly close economic partnership between the two nations. This surge in trade reflects the broader trend of deepening economic relations between the UK and the GCC, with the UK’s total bilateral trade with GCC countries amounting to £57.4 billion in the same year.

The success of this partnership is not just reflected in statistics but in the real-world achievements of companies working on both sides. British companies are increasingly finding success in Saudi Arabia, contributing to the Kingdom’s ambitious Vision 2030, which aims to diversify the Saudi economy away from oil dependence. British firms such as Benoy, Downe House Riyadh, and Prior + Partners are among those helping to shape Saudi Arabia’s future through projects in architecture, education, and cultural preservation.

Benoy, for example, designed the iconic Bujairi Terrace adjacent to the UNESCO World Heritage Site of At-Turaif, enhancing Saudi Arabia’s cultural offerings. Downe House Riyadh, the Kingdom’s first premium British all-girls school, is contributing to the education sector’s transformation. Meanwhile, Prior + Partners is working with the Royal Commission for AlUla to create a “living museum” in one of Saudi Arabia’s most historic and culturally significant regions. These companies, alongside many others, illustrate the mutually beneficial nature of UK-Saudi economic collaboration.

In support of Saudi Arabia’s Vision 2030 and the wider UK-GCC economic relationship, UK Export Finance (UKEF) has played a pivotal role. UKEF, the UK’s export credit agency, recently guaranteed an Islamic Murabaha financing facility of $700 million to finance the construction of the Six Flags Qiddiya theme park in Saudi Arabia. This theme park, which will feature the world’s tallest, longest, and fastest roller coaster, represents a significant opportunity for UK supply chain companies to contribute to Saudi Arabia’s entertainment and tourism sectors.

The UKEF’s involvement not only highlights the UK’s commitment to supporting Saudi Arabia’s ambitious projects but also reinforces the importance of economic cooperation in achieving mutual prosperity. Through initiatives like this, UK businesses are positioned to play a key role in delivering projects that align with Saudi Arabia’s vision for the future.

The UK’s growing economic partnership with Saudi Arabia is emblematic of the broader relationship it shares with the entire GCC. UK Business and Trade Secretary’s recent visit to Riyadh underlined the strong foundation of trust and collaboration that exists between the UK and its Gulf partners. The dialogue with Saudi ministers and business leaders reinforced the shared commitment to mutual growth, with both sides recognizing the potential for even greater economic cooperation.

In a significant step toward enhancing these ties, the UK government announced in July 2024 its intention to restart trade negotiations with the GCC, aimed at securing a comprehensive free trade agreement (FTA). This agreement would not only simplify business procedures between the UK and the GCC but also unlock new investment opportunities for both sides. By removing trade barriers, the FTA would allow the UK and the Gulf nations to better leverage their complementary economic strengths.

The UK’s economy is driven by innovation, finance, and technology, while the GCC’s economies are characterized by their strategic energy resources, burgeoning tourism sectors, and investment in infrastructure. A free trade agreement would streamline operations for businesses in both regions and enable them to capitalize on each other’s strengths, fostering a new era of mutual economic growth.

The UK-GCC relationship extends beyond trade and investment, with strong cultural and people-to-people connections forming another important aspect of the partnership. More than 150,000 British citizens currently live and work in the GCC, while tourism between the two regions remains vibrant. In 2023, over one million UK visitors traveled to the GCC, with 286,000 visitors coming from Saudi Arabia alone. Meanwhile, the UK welcomed more than a million visitors from the GCC, contributing to the deepening social and economic ties between the regions.

The introduction of the UK’s electronic travel authorization, which began with a rollout in the GCC, reflects the importance the UK places on its relationship with Gulf countries. By facilitating smoother travel for GCC citizens, the UK is reinforcing the close ties that exist between its people and the people of the Gulf.

As long-term strategic partners, the UK and the GCC share a vision of mutual prosperity, rooted in economic growth and underpinned by a strong foundation of trust. Both regions prioritize policies and programs that benefit their home economies while recognizing the importance of cooperation in achieving shared goals. An ambitious and modern free trade deal would not only strengthen this partnership but also create lasting economic stability and prosperity for both the UK and the GCC.

As the UK prepares to host an international investment summit, with leaders from Saudi Arabia and across the GCC in attendance, the message is clear: the UK is open for business. This summit will provide a platform for the UK to showcase its long-term economic plans and invite global industry leaders to share in its vision. By deepening its economic ties with the GCC, the UK is positioning itself at the forefront of global trade, ensuring that both regions benefit from shared growth and prosperity.

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