meed-logo

line1 line2 line3
SIGN IN / REGISTER

UK-GCC trade talks make slow progress

11 December 2023

 

There may be some frustration creeping in over the pace of negotiations on a free trade agreement (FTA) between the UK and the GCC, with Gulf officials in particular calling for the process to be expedited.

The two sides launched the process in June 2022 and since then there have been five rounds of talks, the most recent of which wrapped up in Riyadh on 16 November.

The UK’s Department for Business & Trade said a few days later that technical discussions had been held on 21 policy areas and “good progress was made” with the draft text, with advances made in “the majority of chapters”.

The next round of talks is due to take place in the first quarter of 2024.

It is not clear how far the two sides are from reaching a deal, but Gulf officials have said they would like to see faster progress. At a meeting in Manama on 18 November, GCC secretary-general Jassem Mohamed Albudaiwi told the UK’s Minister of State for the Middle East Lord Ahmad of Wimbledon (pictured) of the “urgency of expediting the pace of negotiations”.

The UK, however, appears to be in less of a rush. Speaking at the Arab-British Economic Summit in London on 20 November, the country’s chief negotiator on the FTA, Tom Wintle, said: “It is fundamentally about the deal, not the date. We are absolutely committed to working at pace. We have huge political will and commitment on both sides to get this done. I can vouchsafe that both sides are working flat out. But it is about getting the right agreement.”

He declined to be drawn on how much longer the process might take but added: “We are starting to see what I believe will be a really remarkable free trade agreement emerging.”

The slow pace of the UK-GCC negotiations contrasts with the speed at which the UAE has been signing its own versions of bilateral FTAs.

Over the past few years, the UAE has launched negotiations on comprehensive economic partnership agreements (CEPAs) with several countries. The first four deals – with India, Israel, Indonesia and Turkiye – took an average of less than seven months from launch to conclusion.

At heart, what an FTA is looking to do is to make business easier, cheaper, more secure
Tom Wintle, the UK’s chief negotiator for the UK-GCC FTA

Gainful opportunity

Trade between the UK and the six GCC economies was worth £61m ($77bn) in 2022, according to the UK authorities, who suggest that the removal of tariffs and other barriers could increase trade flows by “at least 16 per cent”.

When the negotiations first began, the UK government pointed to the food and drink sector along with manufacturing and renewable energy as areas that stood to benefit from any deal.

In his most recent comments, Wintle emphasised potential gains in the digital realm, “and in particular the opportunity and potential to grow the transformational technologies like e-commerce, like AI [artificial intelligence]”. He went on to talk about “an FTA that really harnesses both what is happening today but importantly the forces that will shape the world of work and commerce in the future”.

In terms of specific demands, Wintle said the UK is looking to “lock in legal certainty on electronic transactions so businesses can make greater use of things like e-contracts, e-signatures, paperless trading”. 

“At heart, what an FTA is looking to do is to make business easier, cheaper, more secure,” he added.

While the talks continue, companies continue to trade. Speaking on the sidelines of the conference, an executive at a technology company that is already present in the UAE and is considering expanding into Saudi Arabia was cautious about the difference an FTA might make. “It is the market opportunity that is the driver,” he said.

Elsewhere in the Middle East, the UK already has FTAs in place with Egypt, Lebanon, Morocco and Tunisia, and has been on a push to sign more since leaving the EU. The talks with the GCC are just one of many sets of live negotiations, with others currently under way between the UK and South Korea, Canada and India, among others.

Trade issues also regularly come up in the strategic dialogues that the UK holds with countries from around the Middle East and North Africa region. In recent weeks, it has held them with Algeria, Bahrain and Tunisia.

Lord Ahmad told the Arab-British Economic Summit that in the recent meeting with Algeria, “we focussed on opportunities to increase our burgeoning trade relationship”, which he said had grown by 24 per cent in the past year to a value of £3bn.

Trade ties with Algeria go back a long way, with the two countries having signed a bilateral Treaty of Peace & Trade in 1682.

Lord Ahmad said the dialogues with Bahrain and Tunisia “focussed on areas such as climate, education, transport and much more as well”, and said in relation to the GCC trade talks that “we are progressing that well”.

“A trade deal with the GCC will boost our collaboration across a huge range of sectors, creating many business opportunities and importantly jobs on both sides, and attracting new investment,” he added.

“For the economies of the Arab world to become less dependent on carbon and fossil fuels, we must open doors for entrepreneurs to take advantage of the technologies – opportunities we can only grasp by removing barriers and facilitating growth, and working with our Gulf partners.”

As the long history of UK-Algeria trade shows, FTA deals are not a new concept even if, as with the ongoing GCC talks, it can take time to frame an agreement that takes into account the fast-moving nature of commerce.

Image: UK Minister of State for the Middle East Lord Ahmad of Wimbledon at the 2023 Arab-British Economic Summit

https://image.digitalinsightresearch.in/uploads/NewsArticle/11350781/main0606.gif
Dominic Dudley

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Bid deadline extended for Kuwait oil pipeline

    6 May 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has extended the bid deadline for a project to develop a crude oil pipeline in the country.

    The invitation to bid was originally tendered in October last year, with a bid deadline of 18 January 2026.

    Since then, the deadline has been extended several times, and the latest announced bid deadline is 31 May 2026.

    The new pipeline will have a diameter of 20 inches and will carry the crude oil blend known as Ratawi-Burgen.

    The project scope will involve replacing a 30-kilometre section of the pipeline known as CR-058.

    The pipeline originates from the Wafra field and feeds crude oil into the larger 36-inch CR-088 crude oil pipeline.

    The pipelines on this network have had documented corrosion issues in the past, which were linked to slow flow rates within the pipelines.

    The Wafra field is located in the Partitioned Zone between Kuwait and Saudi Arabia.

    Both countries equally share the natural resources contained in this region.

    Kuwait is currently pushing to increase its oil production capacity.

    In 2024, Kuwait Petroleum Corporation’s chief executive, Sheikh Nawaf Al-Sabah, reiterated that his company plans to increase Kuwait’s oil production capacity to 4 million barrels a day (b/d) by 2035.                             

    In September last year, Kuwaiti Oil Minister Tareq Al‑Roumi announced that the country’s oil production capacity had reached 3.2 million b/d, its highest level in more than 10 years.

    Kuwait had a similar capacity in the late 2000s, peaking at a recorded 3.3 million b/d in 2010.

    Since the US and Israel’s attack on Iran on 28 February, Kuwait’s oil and gas sector has been rocked by the disruption to shipping through the Strait of Hormuz, through which all of the country’s crude is normally exported.

    Kuwait recorded zero crude oil exports in April for the first time since the end of the Gulf War in 1991, according to shipping monitor TankerTrackers.com.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16691664/main5905.jpg
    Wil Crisp
  • RTCC wins Diriyah civic quarter deal

    6 May 2026

     

    Saudi gigaproject developer Diriyah Company has awarded an estimated SR730m ($195m) construction contract for civic quarter buildings within the Diriyah development in Riyadh.

    The contract was awarded to local construction firm Al-Rashid Trading & Contracting Company (RTCC).

    The package comprises administrative and public service buildings, including the office, a post office, civil defence, a police station, the Diriyah operations centre and a traffic police station.

    According to regional projects tracker MEED Projects, bids for the contract were submitted in December last year.

    The latest award follows Diriyah’s announcement of a SR1.84bn ($490m) construction contract for the Saudi Arabia Museum of Contemporary Art (SAMoCA) within the Diriyah development. The contract was awarded to a consortium of Egyptian contractor Hassan Allam Construction and Saudi Arabia’s Albawani.

    In March, Diriyah Company awarded an estimated SR2.5bn ($666m) contract to build the Pendry superblock package in the DG2 area.

    The Pendry superblock includes the construction of the Pendry Hotel alongside residential and commercial assets. The package will cover 75,365 square metres and is located in the northwestern district of the DG2 area.

    The previous month, Diriyah Company also awarded a SR717m ($192m) contract for the construction of the One Hotel, located in the Diriyah Two area of the masterplan, with a gross floor area of more than 31,000 sq m.

    The Diriyah masterplan envisages the city as a cultural and lifestyle tourism destination. Located northwest of Riyadh city centre, it will span 14 square kilometres and combine 300 years of history, culture and heritage with hospitality facilities.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16684730/main.jpg
    Yasir Iqbal
  • Hormuz crisis revives 1970s-style energy shock

    5 May 2026

    Commentary
    Colin Foreman
    Editor

    Read the May issue of MEED Business Review

    The conflict with Iran is threatening to recalibrate the global energy system. The effective closure of the Strait of Hormuz has caused an energy security crisis reminiscent of the shocks of the 1970s – both in scale and in its potential long-term implications.

    The 1973-74 energy crisis, triggered by an Opec oil embargo, sent prices soaring and altered the trajectory of the global economy. It spurred the creation of the International Energy Agency, the development of strategic petroleum reserves and a wave of energy-efficiency policies. It also cemented energy-for-security arrangements between the West and the Gulf – relationships now being tested again by the latest conflict.

    Today’s disruption – 11 million barrels of oil a day and around 20% of global liquefied natural gas (LNG) shipping capacity – creates a deficit that far exceeds the roughly 5 million barrels a day removed from the market in 1973. 

    While the shocks of the 1970s ushered in a decade of stagflation and a lasting shift towards diversified supply, the current crisis could accelerate demand destruction and a pivot towards energy sovereignty.

    The story is a developing one. From Vietnam’s cancellation of LNG projects in favour of renewables to the surge in electric vehicle adoption across Europe, the perceived unreliability of traditional supply routes is forcing an unprecedented reorientation of capital. 

    The Middle East – long the indispensable heartbeat of global industry – now risks sustained challenges to its market share as producers in the US, Russia, Africa and South America develop new projects unencumbered by reliance on the Strait of Hormuz.

    The structural changes taking root in 2026, like those in 1974, will outlive the conflict itself. Even a swift cessation of hostilities may not allow markets to return to their pre-conflict norms. 

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16685390/main.gif
    Colin Foreman
  • Brookfield to double down on Gulf investment

    5 May 2026

    Brookfield CEO Bruce Flatt has said the asset and alternative investment management company intends to increase its investments in the Gulf, despite the ongoing conflict in the region.

    When asked whether the war is changing the way he thinks about the Gulf region during an interview with CNBC at the Milken Institute Global Conference on 4 May, he said: “No, short answer no – in fact, [we’re] doubling down, we are doing more.

    “When you find great businesses, countries, great people, and the market offers you an opportunity to invest when others are not, it is always the best opportunity in the world, so we are doing more. We have been there for 25 years; we are continuing to do all of the investments we have there, and we are going to do more.”

    Flatt suggested the current period of geopolitical stress could accelerate long-term economic strengthening across the Gulf, arguing that governments and businesses will respond by investing in self-sufficiency and strategic infrastructure. “They will eventually build better countries because of this,” he said.

    Flatt added: “They’re going to build resiliency in all their systems. They’re going to build their own artificial intelligence (AI). They’re going to build their own pipelines to the coast. They’re going to do things they didn’t do before. They have to do it. They probably should have, but they’re going to now, and they’re going to be more resilient.”

    UAE meetings

    Flatt has also travelled to the region since the conflict began on 28 February, meeting senior UAE officials to discuss investment opportunities and deepen cooperation. In Abu Dhabi on 9 April, he met Sheikh Khaled Bin Mohamed Bin Zayed Al-Nahyan, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council. The meeting explored ways to strengthen cooperation in investment and asset management between UAE-based institutions and Brookfield, in line with global economic trends and evolving market demands.

    Two days later in Dubai, Flatt met Sheikh Maktoum Bin Mohammed Bin Rashid Al-Maktoum, First Deputy Ruler of Dubai, Deputy Prime Minister, Minister of Finance and Chairman of the Dubai International Financial Centre (DIFC). During the meeting, both sides explored opportunities to expand cooperation, highlighting the UAE and Dubai’s value proposition for global investors, including an integrated financial system, a flexible and advanced regulatory environment and world-class digital infrastructure. Discussions also covered Dubai’s role as a bridge between East and West, and the emirate’s emphasis on long-term partnerships and a transparent, business-friendly environment.

    Qatar partnership

    Brookfield’s regional activities are not limited to the UAE. In late 2025, the firm and Qai – Qatar’s AI company and a subsidiary of Qatar Investment Authority – announced a strategic partnership to establish a $20bn joint venture focused on AI infrastructure in Qatar and select international markets. The venture is expected to support Qatar’s ambition to become a hub for AI services and infrastructure in the Middle East. It is slated to be backed through Brookfield’s Artificial Intelligence Infrastructure Fund, part of a broader AI infrastructure programme targeting up to $100bn in global investment.

    Brookfield Infrastructure maintains a vast and diversified global portfolio characterised by high-barrier-to-entry assets across five core sectors. The data infrastructure segment has become a primary growth engine, currently comprising 150 data centres with significant operating capacity and about 308,000 operational telecom sites. In the utility and energy midstream space, the firm manages over 1,900 miles of electric transmission lines and a network of 2,100 miles of gas pipelines. The transport sector is another cornerstone of the portfolio, anchored by 22,500 miles of rail operations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16686052/main.gif
    Colin Foreman
  • Insurers will only cover a fraction of war damage to oil and gas facilities

    5 May 2026

     

    Insurers are expected to cover only a fraction of the damage to oil and gas facilities in the Middle East caused by the regional war, according to industry sources.

    Standard industrial property and business interruption policies typically exclude damage and disruption caused by acts of war. Companies therefore need specialist war-risk insurance or political violence and terrorism (PVT) insurance to be eligible for payouts.

    While most state-owned national oil companies (NOCs) are likely to have arranged this type of cover for major facilities, it is less common among smaller private or publicly traded companies.

    As a result, many assets – such as smaller fertiliser plants and chemical facilities – are expected to be uninsured for war-related damage.

    “War insurance was never a widely purchased product in the region,” said one source. “It’s one of these things that people never really believe is going to happen.

    “In a lot of companies, spending hundreds of thousands of dollars every year for this kind of product was seen as something they couldn’t really justify.”

    Even companies that purchased war-risk or PVT insurance before the US and Israel attacked Iran on 28 February are unlikely to be covered for the full extent of war damage.

    War-risk insurance for large assets such as oil refineries or LNG terminals typically carries limits of $200m to $500m.

    In many cases, repairs to the region’s large and complex oil and gas facilities are likely to cost billions of dollars.

    One source said: “If you had, for example, an oil refinery that’s worth $8bn, you couldn’t really buy a war insurance policy to cover the price of a complete rebuild.

    “There just isn’t enough insurance capacity in the market to buy that level of cover.

    “Very often NOCs were buying cover at the highest level they could find, but this was limited by what markets were prepared to insure.”

    Payout timing

    Full insurance settlements for war damage are expected to take significant time – potentially 18 months to two years for some policyholders.

    Payments typically begin with an initial payout of around 20%-30% of the total claim. This is followed by a second payment mid-project – usually once engineering is complete – and then a final payment.

    In most cases, projects to rebuild and repair damaged oil and gas facilities are not expected to be delayed while owners wait for insurance proceeds.

    One source said: “A lot of the owners of these damaged facilities don’t see the current situation as the right time to start rebuilding, but that isn’t because they are waiting for insurance money.

    “The risk of new attacks and more damage is still high, and they are going to want to wait for signs of more stability before they start rebuilding.”

    Experts believe that once the security environment improves, facility owners will begin tendering repair and reconstruction contracts even if insurers have not settled claims.

    “A lot of the companies that operate oil, gas and chemical facilities in the region have access to funds that will allow them to rebuild without being reliant on insurers,” said one source.

    “Even if they have a policy that they expect to pay out, it is likely that they will go ahead with the project before receiving full payment if they think it is the right time to rebuild.”

    Once the security environment improves, the cost of rebuilding fully destroyed units is expected to be higher than when they were originally constructed, due to multiple rebuild projects progressing in parallel across the region.

    This is likely to drive a spike in demand for skilled labour and materials, pushing up costs.

    Market impact

    Insurers providing this type of cover in the region have generally experienced several years of low payout levels, so they are expected to meet claims with limited financial strain.

    However, the volume of claims stemming from the US and Israel’s war with Iran is expected to harden the war-risk and PVT insurance market, increasing premiums for owners of oil and gas facilities for some time.

    Ultimately, the limited scope of coverage means the financial burden of the war will fall more heavily on asset owners than on insurers.

    Even where cover is in place, policy limits mean insurers will only partially offset the cost of rebuilding large facilities, leaving companies and governments to bridge funding gaps.

    The experience is likely to prompt a reassessment of risk across the region’s energy sector, with lenders and investors placing greater emphasis on potential political violence-related damage when evaluating projects.

    READ THE MAY 2026 MEED BUSINESS REVIEW – click here to view PDF

    Global energy sector forced to recalibrate; Conflict hits debt issuance and listings activity; UAE’s non-oil sector faces unclear recovery period amid disruption.

    Distributed to senior decision-makers in the region and around the world, the May 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/16683871/main.jpg
    Wil Crisp