Bahrain’s industry minister told CNBC that the trade deal between the UK and the Gulf state is a “monumental achievement”.
Bahrain’s Minister of Commerce, Abdullah bin Adel Fakhroh, said the free trade agreement announced on Wednesday was a win-win for the UK and the Gulf Cooperation Council and was “very important”.
“The size of this FTA (free trade agreement) is very large, the bilateral trade between countries is very large, and the investment between countries is very large,” he told CNBC’s Dan Murphy, adding that he expects the deal will expand these areas of cooperation.
“We really consider this a monumental achievement. This is extremely important for both the GCC and the UK,” he added.
Abdullah bin Adel Fakhro, Minister of Industry and Trade of Bahrain, attends a session held as part of the 2024 St. Petersburg International Economic Forum (SPIEF).
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The deal comes at a turbulent time for the GCC, with the war between the US and Iran disrupting the region’s major oil and gas industry, exports and economy. Regional ministers are keen to stress that the GCC remains open for business, fearing that the ongoing conflict could discourage investors.
“Iran’s aggression in the GCC was unprovoked, unacceptable and illegal, and the GCC countries’ response has been very prudent, very restrained, and focused on stability and continued economic growth, even accelerating economic growth,” Fakhro said.
He added: “Today, the GCC as a bloc is more united, stronger and integrated than ever before, with a focus on the areas where we need to strengthen, such as industrial manufacturing and supply chains.”
mutual benefit
The GCC consists of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, with a combined GDP of more than $2 trillion and a population of more than 57 million people.
If fully implemented, the agreement would exempt an estimated 580 million pounds ($780 million) a year in customs duties based on current UK exports to the GCC, of ​​which 360 million pounds would be “exempted on the first day the agreement comes into force,” the UK Department of Industry and Trade said.
Some Gulf tariffs on UK imports – including cars, turbojets, aerospace parts and food products such as cheddar cheese and chocolate – will be removed immediately, while others, such as duties on electric vehicles, will be removed over an agreed five- or 10-year period.
Mr Fakhro said the deal would be beneficial for the Gulf countries as the UK is seen as a leader in the fintech, services and advanced manufacturing sectors. “We expect to see a lot more collaboration in these industries,” he said. He added that the Gulf petrochemical industry would greatly benefit from the trade agreement.
On April 9, 2026, British Prime Minister Keir Starmer (left) welcomes British Prime Minister Keir Starmer (left) on his arrival for a visit to Abu Dhabi, United Arab Emirates, by Khaldoon Khalifa Al Mubarak, Head of the Emirate.
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When the deal was announced on Wednesday, Britain described it as a “huge victory” and a “historic” deal that is expected to boost the economy by an estimated 3.7 billion pounds ($4.9 billion) each year over the long term.
Announcing the deal, the UK’s Department for Industry and Trade said: “The UK has today become the first G7 country to sign a trade agreement with the GCC, potentially boosting growth and raising wages for decades to come. This will strengthen economic links with the region, support jobs in the long term and strengthen domestic resilience.”
The UK government said the agreement with the GCC reflects the UK’s “solidarity and long-term cooperation with the Gulf states”.
The deal is a welcome boost for British Prime Minister Keir Starmer, who faces leadership challenges as the British economy comes under pressure from the Iran war.
Commenting on the deal, Starmer said: “Today’s agreement is a huge win for British businesses and for working people who will see the benefits through higher wages and increased opportunities over the coming years.”
“Gulf countries are important economic partners and this agreement will deepen that relationship, build trust and unlock new potential for trade and investment,” he added.
