Gulf countries finalized a free trade agreement with the UK — the first such deal between the six-member Gulf Cooperation Council and a G7 economy. At a time of conflict, it offers a timely boost for the region, although the war also means any benefits could be slow to materialize.
The deal took almost four years to negotiate and covers trade in goods and services, including digital services. Also in the deal are provisions allowing UK companies to store and process data outside the Gulf, meaning they can avoid having to set up costly (and vulnerable) data centers in the region.
Trade between the two sides was worth £52.9 billion ($71 billion) last year, according to official UK figures, making the bloc London’s fourth biggest trading partner after the EU, US, and China. Tariffs will be removed on 93% of UK exports to the Gulf over a 10-year period; the UK in turn hopes for greater investment flows from Gulf sovereign wealth funds.