The United Kingdom and the Gulf Cooperation Council (GCC) countries concluded talks on a free trade agreement on Wednesday, in a move aimed at boosting trade and investment and opening up broader prospects for exporters of goods, service providers and investors on both sides, including Saudi Arabia.
According to the statement issued by the British side, the agreement is the first trade agreement between the Gulf Cooperation Council countries and one of the G7 countries, and is based on promoting free trade, supporting mutual prosperity, and providing a legal framework that gives companies and investors greater stability and clarity for planning, investment and growth.
Saudi-British trade amounts to 69.5 billion riyals
The volume of trade in goods and services between Saudi Arabia and the United Kingdom currently stands at £13.8 billion, equivalent to about 69.5 billion riyals, while the agreement is expected to raise the volume of trade between the United Kingdom and the Gulf countries by nearly 20%, adding £15.5 billion annually, equivalent to about 77.9 billion riyals.
Faster transit for Saudi exports
The agreement is expected to facilitate the movement of Saudi exports to the United Kingdom more quickly and at a lower cost, by simplifying customs procedures and official transactions, and eliminating customs tariffs on all current exports to the United Kingdom after the agreement comes into effect.
The agreement enhances the confidence of Saudi investors in the British market and reinforces the United Kingdom’s position as a major destination for Gulf investments, particularly in the infrastructure, clean energy, and artificial intelligence sectors, noting existing Saudi investments through the Public Investment Fund, Alfanar, and Aramco Ventures.
British products at a lower cost
In the food and beverage sector, the statement indicated that UK exports to Saudi Arabia amount to £184 million annually, equivalent to about 925 million riyals, expecting the agreement to contribute to reducing the cost of some British products for consumers in the Kingdom.
The agreement includes gains for the services sector and professionals, by strengthening labor rules, supporting the flow of financial data, and facilitating the expansion of information technology companies, banking institutions and insurance companies, in addition to setting frameworks for the recognition of professional qualifications, which helps engineers, lawyers, accountants and other competencies to work between the two sides.
Partnership entering a new phase
British Business and Trade Minister Peter Kyle said the agreement represents a major step forward in the partnership between the United Kingdom and the Gulf States, and opens new doors for trade, investment and innovation for businesses and communities.
For his part, the British Ambassador to Saudi Arabia, Stephen Hitchin, described the agreement as an important milestone in Saudi-British relations, noting that it builds on decades of cooperation in trade, investment, defense and culture, and paves the way for new sectors and opportunities.
The United Kingdom and the Gulf Cooperation Council countries concluded today (Wednesday) discussions regarding a free trade agreement, in a move aimed at enhancing trade and investment and opening broader horizons for goods exporters, service providers, and investors on both sides, including the Kingdom of Saudi Arabia.
According to a statement issued by the British side, the agreement is the first trade agreement between the Gulf Cooperation Council countries and one of the G7 countries, focusing on promoting free trade, mutual supporting prosperity, and providing a legal framework that grants companies and investors greater stability and clarity for planning, investment, and growth.
69.5 billion Riyals in Saudi-British Trade
The volume of trade in goods and services between Saudi Arabia and the United Kingdom currently stands at £13.8 billion, equivalent to approximately 69.5 billion Riyals. The agreement is expected to increase the trade exchange between the United Kingdom and the Gulf countries by nearly 20%, adding £15.5 billion annually, which is about 77.9 billion Riyals.
Faster Passage for Saudi Exports
The agreement is anticipated to facilitate the movement of Saudi exports to the United Kingdom more quickly and at a lower cost by simplifying customs procedures and official transactions, and eliminating customs duties on all current exports to the United Kingdom once the agreement comes into effect.
The agreement enhances the confidence of Saudi investors in the British market and solidifies the United Kingdom's position as a primary destination for Gulf investments, especially in the sectors of infrastructure, clean energy, and artificial intelligence, noting existing Saudi investments through the Public Investment Fund, Al-Fanar, and Aramco Ventures.
British Products at Lower Costs
In the food and beverage sector, the statement indicated that UK exports to Saudi Arabia amount to £184 million annually, equivalent to about 925 million Riyals, expecting that the agreement will help reduce the cost of some British products for consumers in the Kingdom.
The agreement includes benefits for the services sector and professionals by enhancing labor rules, supporting the flow of financial data, and facilitating the expansion of IT companies, banking institutions, and insurance companies, in addition to establishing frameworks for recognizing professional qualifications, which helps engineers, lawyers, accountants, and other talents work between the two sides.
A Partnership Moving to a New Phase
British Minister of Business and Trade Peter Kyle stated that the agreement represents a significant step in the partnership between the United Kingdom and the Gulf countries, opening new doors for trade, investment, and innovation for businesses and communities.
For his part, the British Ambassador to Saudi Arabia, Stephen Hitchen, described the agreement as an important milestone in Saudi-British relations, noting that it builds on decades of cooperation in trade, investment, defense, and culture, paving the way for new sectors and opportunities.
