Britain Signs $5 Billion Gulf Trade Deal

Britain has signed a trade deal worth about $5 billion a year with Gulf countries, to strengthen economic ties during a period of instability linked to the Iran conflict.

According to Reuters, the deal was signed on Wednesday by the United Kingdom (UK) and the Gulf Cooperation Council (GCC), which includes Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain.

UK Trade Minister Peter Kyle said the deal will help British businesses grow and give them more stability in uncertain times.

He said: “At a time of increased instability, today’s announcement sends a clear signal of confidence, giving UK exporters the certainty they need to plan ahead.”

Britain Signs $5 Billion Gulf Trade Deal (NewsCentral TV) — British Business Secretary Peter Kyle speaks at the Progress Conference in the Barbican in London, Britain, May 16, 2026. Credit: REUTERS.

The UK government said the deal could be worth £3.7 billion ($4.96 billion) every year in the long run, higher than earlier estimates. Under the agreement, most tariffs (taxes on goods) between the UK and Gulf countries will be removed over time. This means that products like cars, electronics, food, cheese, and chocolate will become cheaper to trade.

In return, Britain has also reduced some trade taxes, although oil and gas from Gulf countries were already exempt from taxation. Also, the GCC said the deal will help businesses, investors, and ordinary people across all member countries. However, some groups have criticised the agreement for not including strong human rights rules.

Tom Wills of the Trade Justice Movement said: “By failing to negotiate any enforceable human rights protections within the deal, the UK has taken a moral step backwards.”

The agreement also includes rules to protect investors, allowing companies to challenge government decisions through international dispute processes.

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