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
  • Aramco-backed firm tenders logistics hub expansion

    9 November 2026

     

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.

    The logistics hub will add over 124,000 square metres (sq m) at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.

    The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.

    Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.

    The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif
    Yasir Iqbal
  • Prequalification begins for multibillion-dollar Dubai road

    9 November 2026

     

    Dubai’s Roads & Transport Authority (RTA) has begun prequalifying contractors for a design-and-build contract for a multibillion-dollar new road that will run parallel to Sheikh Zayed Road.

    Contractors have until 30 November to submit their prequalification statements.

    The latest development follows contractors’ expressions of interest for the project on 10 October, as MEED reported.

    The project’s scope covers about 30 kilometres (km) of works. These include about 15km of viaduct along First Al-Khail Street and more than 14.5km of bridge ramps, along with other associated infrastructure works.

    The project is another significant initiative aimed at alleviating pressure on the existing Sheikh Zayed Road section from Hadiqa Street to Hessa Street.

    Dubai has previously explored bold concepts to expand capacity on Sheikh Zayed Road, including proposals to introduce double-decker sections to add extra lanes without widening the existing corridor.

    The idea was discussed in the context of rising congestion and limited right-of-way along one of the city’s busiest arterial roads, with elevated decks potentially carrying through traffic while existing at-grade lanes served local access.

    The plans ultimately became standalone schemes, with subsequent efforts focusing instead on corridor-wide upgrades, interchange improvements and complementary public transport expansions to manage demand more sustainably.

    The latest project aligns with Dubai’s continued investment in upgrading and expanding its road network to keep pace with rapid population growth and rising commuting demand.

    Planning for growth

    Dubai launched the 2040 Urban Master Plan in March 2021, referencing studies indicating that the emirate’s population will reach 5.8 million by 2040, up from 3.3 million in 2020. The daytime population is set to increase from 4.5 million in 2020 to 7.8 million in 2040.

    In December 2022, Sheikh Mohammed Bin Rashid Al-Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, approved the 20-Minute City Policy as part of the second phase of the Dubai 2040 Urban Master Plan. 

    In addition to the road projects, the RTA’s Dubai Metro Blue Line extension and Dubai Metro Gold Line form part of Dubai’s plans to improve residents’ quality of life by cutting journey times, as outlined in the policy.

    The policy aims to ensure residents can meet 80% of their daily needs within a 20-minute journey, on foot or by bicycle. This goal will be achieved by developing integrated service centres with all necessary facilities and increasing population density around mass transit stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21266194/main.gif
    Yasir Iqbal
  • Contractor begins early works on Ardara’s AlWadi project

    9 November 2026

    Saudi Arabia’s Shibh Al-Jazira Contracting Company (Sajco) has started early construction works on the first cluster of its AlWadi mixed-use development in Abha.

    Ardara, backed by the sovereign wealth vehicle the Public Investment Fund (PIF), is developing the AlWadi project.

    Sajco will carry out sewerage works, while local engineering firm Dar Al-Riyadh will provide project management and supervision services for the infrastructure works.

    The AlWadi project will cover 2.5 million square metres (sq m) and will be developed around architectural styles informed by the heritage and character of the Aseer region.

    The masterplan has a planned gross floor area of about 2.02 million sq m. It includes 7,306 apartments, 90 villas and townhouses, and 2,783 hotel keys.

    The scheme will also provide 154,082 sq m of retail and food and beverage space, 64,161 sq m of offices, and 59,075 sq m of leisure and entertainment facilities.

    The wider development will comprise five districts and include 16 kilometres of waterfront assets and 17km of walking, cycling and sports tracks. 

    US-based Parsons is the infrastructure designer, while Miami-based OBMI is providing architectural and public realm design services.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21265927/main.jpg
    Yasir Iqbal
  • Syria in talks for refinery project worth $6bn-8bn

    9 November 2026

    Register for MEED’s 14-day trial access 

    Discussions are under way with international companies to develop a refinery in Syria’s Furqlus area, worth $6bn-8bn, according to a senior official at state-owned Syrian Petroleum Company (SPC).

    The project will be “very large” and, after completion, will replace Syria’s Homs refinery, according to SPC’s deputy executive president for refining affairs, Tariq Shalash Al-Abdullah, who spoke to Syria’s state-owned daily newspaper Al-Thawra Al-Souriya.

    He said the international companies currently involved in talks about the planned refinery project specialise in design work, engineering and technical studies.

    He also stated that, for large-scale projects of this type, consortiums are typically formed from a group of companies with complementary interests in study, manufacturing, financing, implementation and operation.

    In June, SPC published an invitation for companies to submit proposals to finance, build and operate the refinery under a build-operate-transfer agreement.

    The tender document published by SPC said the refinery would have the capacity to process 210,000 barrels a day (b/d).

    It also said the facility would be developed with the option to add an “ancillary petrochemical complex”.

    Al-Abdullah said the refinery’s total investment value would depend on the equipment's country of origin, adding that the equipment could potentially be procured from the US, Europe or China.

    Another factor that could alter the project’s value is the technology licences selected for the project, according to Al-Abdullah.

    The refinery project is expected to take around four years to develop from the date of signing the contract and completing other related preparatory activities.

    The project will be developed on a site that covers 400 hectares, according to the document that was published by SPC in June.

    SPC invited companies to submit three separate documents relating to their proposals.

    These were:

    • A package outlining the company’s qualifications and legal documents
    • A technical proposal
    • A financial and investment proposal

    According to the tender document, the scope of the refinery project includes developing:

    • Three independent atmospheric distillation units, each with a capacity of 70,000 b/d
    • Two vacuum distillation units
    • Hydrotreating units
    • Sulphur recovery units
    • A base oil unit
    • Power and steam generation facilities
    • A grid interconnection substation
    • A safe shutdown system
    • An environmental water treatment system
    • A gas recovery system
    • A unit to produce nitrogen and oxygen
    • A fire water network
    • Maintenance and repair workshops
    • Tank farm and storage facilities

    Under the plans outlined in SPC’s tender document, at least 85% of the refinery’s products should meet Euro-5 specifications.

    SPC is also seeking a “plan for the establishment and integration of an advanced petrochemical complex”, which would be connected to the refinery, according to the document.

    Because of this, it said the refinery design must allow diversion of some light and heavy naphtha and liquid petroleum gas (LPG) to be used as feedstock for the future petrochemical complex.

    The petrochemical complex is planned to use 20% to 40% of the naphtha and LPG.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21263584/main.png
    Wil Crisp
  • Three Libya oil and gas projects see developments

    9 November 2026

     

    Three key oil and gas projects in Libya have seen developments amid an uptick in activity in the North African country’s hydrocarbon sector.

    The contract scopes include seismic work, subsea pipeline development and drilling services.

    An invitation to prequalify has been issued for a project to provide two-dimensional (2D) and three-dimensional (3D) offshore seismic surveying services.

    The survey area is the Libyan Offshore Area O1, located in the Sirte Basin.

    The winner of the contract will be responsible for:

    • Acquisition of approximately 6,100 square kilometres (sq km) of 3D full-fold marine seismic data
    • Acquisition of approximately 3,000 sq km of 2D full-fold marine seismic data

    The client on the project is the Italian oil and gas company Eni.

    In a statement posted on the website of Libya’s National Oil Corporation (NOC), it said: “The objective of the survey is to acquire, within the required operational window from September 2027 to March 2028, high-quality broadband seismic data to improve the imaging of Cretaceous reservoir sequences and support future exploration activities.”

    The deadline to submit prequalification documents is 2 December 2026.

    Deadline extended

    Libya’s Mellitah Oil & Gas Company (MOG) has extended the deadline for companies to submit prequalification documents for a major offshore package as part of its Mellitah complex expansion and CO2 management integrated development project, which is estimated to be worth about $8bn.

    The previous deadline of 5 November 2026 has been extended to 3 December 2026.

    MOG, a joint venture of NOC and Eni, is the project client.

    The package, known as WP4B1, focuses on developing offshore pipelines and subsea systems for the E offshore installation and CO2 project.

    The turnkey contract will use the engineering, procurement, installation and commissioning (EPIC) model.

    As part of the Mellitah complex expansion and CO2 management integrated development project, two offshore structures – Structure A and Structure E – will be developed in Libya’s offshore block NC 41.

    Structure A is also known as wellhead production fixed platform A (WHPA) and Structure E is also known as production platform E (PPE).

    Structure A is in the central-western part of the area, about 80 kilometres (km) from the Libyan coast, with a water depth of 95-105 metres.

    Structure E is located in the central-eastern part of the area, about 130km from the Libyan coast, in a water depth of 205-235 metres.

    The scope of the wider project includes:

    • A new production platform installed in about 220 metres of water depth as part of the development of Structure E (Package WP1)
    • A new wellhead platform installed in 96 metres of water as part of the development of Structure A (Package WP2)
    • Modification of the existing Sabratha platform (Package WP3)
    • Sealines and subsea systems extending from the Sabratha platform to Structure A (Package WP4A1)
    • Sealines and subsea systems for Structure E and the CO2 system (Package WP4B1)
    • Supply of seamless carbon steel pipes for CO2 injection from the Mellitah complex to Sabratha platform (Package WP4B2)
    • Subsea Production Systems (SPS) for Structure E and CO2 (Package WP4B3)
    • Upgrading the existing onshore Mellitah complex (WP5)

    The package known as WP4B1 has been broken down into two phases.

    The first phase focuses on the installation of the project’s subsea CO2 pipeline and its related system network.

    The second phase of WP4B1 is focused on the pipeline to structure E and its related subsea system network.

    Monitoring drilling

    MOG has also issued a separate invitation for prequalification relating to a contract to provide hydrogen sulphide monitoring services for offshore drilling.

    The contract focuses on providing H2S monitoring services for 18 offshore development wells as part of the “Structures A&E” project.

    Four of the wells will be subsea wet wells and a further 14 will be dry tree wells.

    The deadline for submitting prequalification documents is 3 December 2026.

    The work will be carried out in the zone known as Area D, Block NC41.

    H2S monitoring in the oil and gas industry involves tracking H2S gas concentrations in the air using electronic sensors and detectors to protect workers, prevent fatal exposures and avoid equipment damage.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21263383/main.jpg
    Wil Crisp