UK Aiming to Finalize Gulf Trade Deal Within Weeks Amid Regional Tensions

Britain is pushing to have its trade agreement with the Gulf Co-operation Council signed within weeks as it seeks to strengthen economic ties with a vital region for global energy, investment, and trade. Anas Sarwar, the UK’s new Minister of State for Trade, stated that the nation is prepared to finalize the GCC agreement and initiate preparatory discussions for a deeper bilateral pact with the UAE.

Mr. Sarwar, scheduled to be elevated to the peerage on Thursday, selected the Gulf for his first official trip outside Europe since assuming his trade portfolio. His itinerary included stops in Saudi Arabia and the UAE before departing from the Emirates on Wednesday.

“We’re ready to sign the GCC deal,” Mr. Sarwar told The National. “We’re ready to start the preparatory work on what a bilateral agreement would look like, between the UK and the UAE. I want this to be discussions that are talking about weeks rather than months. Certainly don’t want to be discussions that are going on for years.”

His visit unfolds against the backdrop of renewed economic consequences stemming from the Iran war, following fresh US-Iran fighting and shipping attacks near the Strait of Hormuz. Two supertankers transporting Saudi crude were struck by unidentified projectiles on Tuesday while exiting the strait, each carrying two million barrels of oil. Data from Kpler indicated that traffic through Hormuz dropped to approximately five ships on Monday, down from a 10-day average of about 14.

This disruption has intensified concerns regarding energy prices and export route resilience. Oil prices climbed about 2 percent on Tuesday following the renewed hostilities, and Mr. Sarwar noted that his decision to visit Saudi Arabia and the UAE first was a deliberate display of solidarity with the region.

According to UK government data provided to The National, the Gulf collectively represents the UK’s 10th-largest trading partner, with bilateral trade valued at £53 billion ($71 billion) in 2025. The upcoming agreement is projected to boost bilateral trade by 19.8 percent over the long term, generating an additional $20.96 billion annually and eliminating tariffs for UK exporters worth approximately $784 million a year.

Mr. Sarwar framed the trade push within a broader global economic shift influenced by protectionism, strategic competition, and supply chain security. He emphasized that Britain aims to become the most connected economy globally, with the UAE and the wider Gulf playing a central role.

During his UAE visit, Mr. Sarwar held discussions with the Minister of Foreign Trade, Dr. Thani Al Zeyoudi, and visited DP World to address investment and infrastructure. UK-UAE trade reached £25 billion in 2025, positioning the Emirates as Britain's top Gulf trading partner. The UAE-UK Sovereign Investment Partnership has funneled over £30 billion of investment commitments into Britain since 2021.

Addressing the economic impact in Britain, Fitch Ratings anticipates that energy price increases from the conflict will restrict UK economic growth to 0.9 percent this year, with inflation projected to reach 3.7 percent by year-end. Mr. Sarwar highlighted the necessity of private-sector investment and foreign direct investment to support grid development, energy storage, and AI data centers.

Reassuring investors regarding stability, Mr. Sarwar affirmed, “The UAE is a good place to do business. It was yesterday, it was a year ago, and it is today, and it will be tomorrow, and it will be next year, and it will be into the future.” He also reiterated Britain's ongoing defense obligations to its allies and partners in the Gulf.