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
  • UAE firm acquires majority stake in African power producer

    31 August 2026

    Abu Dhabi-based ePointZero has announced a deal to acquire a 90% stake in pan-African independent power producer Azura Power Holdings.

    The transaction will give the subsidiary of UAE investment group 2PointZero control of 752MW of operating power generation capacity across Nigeria, Senegal and Mozambique.

    The company will acquire the respective stakes held by existing shareholders Actis and Africa50 through an acquisition vehicle established with Amaya Capital, an Africa-focused investment firm based in London.

    Amaya Capital founded Azuro Power in 2010 and will retain a 10% minority stake in the company, which also has a development pipeline of more than 1.5GW of planned power projects.

    The pipeline includes expansions at existing sites, as well as new gas and renewable energy projects and battery energy storage systems.

    Azuro Power’s operating portfolio comprises the 461MW Azura-Edo power plant in Nigeria, the 116MW Tobene power plant in Senegal and the 175MW Central Termica de Ressano Garcia plant in Mozambique. The company’s operating assets generate around 10% of each country’s grid baseload power, the statement said.

    The company’s projects have received financing and support from development finance institutions including the World Bank, British International Investment, German Investment & Development Company, the US International Development Finance Corporation, the Dutch entrepreneurial development bank, the International Finance Corporation, the Multilateral Investment Guarantee Agency and France’s Proparco.

    The deal, subject to regulatory approvals and other customary closing conditions, marks ePointZero’s entry into African power generation and follows the acquisition of a 20% stake in Egypt’s Elsewedy Electric in 2024.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19171095/main.jpg
    Mark Dowdall
  • Contract award nears for Saudi Landbridge Riyadh section

    31 August 2026

     

    Saudi Arabia Railways (SAR) is preparing to award the main construction contract for the design-and-build of the Riyadh Rail Link, a new north-to-south railway line across the capital.

    MEED understands that the commercial proposals were opened two weeks ago, with a decision expected imminently.

    SAR began the post-tender clarifications with bidders in July, as MEED reported.

    The bidders include:

    • China Civil Engineering Construction Corporation / Al-Ayuni Investment & Contracting (China/local)
    • Nesma & Partners / China Harbour Engineering Company (local/China)
    • Al-Rashid Trading & Contracting / IC Ictas Construction / Saipem (local/Turkiye/Spain)
    • Saudi Binladin Group (local)

    In June, MEED exclusively reported that contractors submitted their commercial proposals on the 30th of that month.

    The scope includes a 35-kilometre double-track line connecting SAR’s North-South Railway to the Eastern Railway network.

    Issued on 29 January, the tender also covers the procurement, construction and installation of associated infrastructure, including viaducts, civil works, utility diversions/installations, signalling systems and other related works.

    Once delivered, the Riyadh Rail Link is expected to become a key component of the Saudi Landbridge railway.

    In January, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium to construct it, as MEED reported.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements, and that the project would instead be delivered in several phases under a different procurement model.

    Negotiations have been under way between Saudi Arabia and China-backed investors interested in developing the scheme through a public-private partnership (PPP). Al-Malik put the project cost at about SR100bn ($26.6bn).

    Overall, it comprises more than 1,500km of new track. A core element is a 900km railway between Riyadh and Jeddah, providing the capital with direct freight access to King Abdullah Port on the Red Sea.

    Other key elements include upgrading the existing Riyadh-Dammam line, a bypass around the capital known as the Riyadh Link, and a connection between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. First announced in 2004, it was put on hold in 2010 before being revived a year later. Rights-of-way issues, route alignment and the high cost have been among the main stumbling blocks.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19161887/main.gif
    Yasir Iqbal
  • Prequalification begins for Dammam suburb boulevard PPP

    31 August 2026

    Saudi Arabia’s Ministry of Municipalities & Housing, in collaboration with Ashraq Development Company and the National Centre for Privatisation & PPP, has issued a request for qualification (RFQ) notice for the development of the King Fahd suburb boulevard project in Dammam.

    The notice was issued on 27 August, with a submission deadline of 22 October.

    The public-private partnership (PPP) project will be delivered using a design, build, finance, operate, maintain and transfer model, with a 43-year contract term.

    The project is located in Al-Bayda Governorate and features a 4 kilometre (km) mixed-use zone along a central boulevard, forming part of a larger 7.3km corridor.

    The project will be developed in two phases and span about 1 million square metres.

    According to a statement: “The private sector partner will be responsible for developing and operating the boulevard, which includes leisure and recreational facilities, public parks, entertainment venues, retail outlets, office spaces, hospitality zones, pedestrian walkways and road networks.”

    The project is the latest addition to the growing number of PPP projects in the kingdom. 

    In January, Saudi Arabia launched a national privatisation strategy aimed at mobilising $64bn in private sector capital by 2030.

    Building on the privatisation programme first introduced in 2018, the strategy focuses on unlocking state-owned assets for private investment and privatising selected government services.

    In a statement, NCP said the strategy comprises 147 opportunities drawn from a broader pipeline of more than 500 projects across 18 sectors.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19160560/main.jpg
    Yasir Iqbal
  • Contractors submit bids for Kuwait power transmission works

    31 August 2026

     

    Kuwait’s Public Authority for Housing Welfare (PAHW) has received bids for two tenders covering power transmission works at the South Saad Al-Abdullah residential development.

    The first tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the third phase of the development. 

    According to sources, five contractors submitted bids on 26 August. The local Sayed Hamid Behbehani & Sons made the lowest offer of $104.2m.

    The bids include:

    • Sayed Hamid Behbehani & Sons: $104.2m (Kuwait)
    • Industrial Electrical Projects (IEP): $111.5m (Kuwait)
    • Larsen & Toubro: $114m (India)
    • Oman National Engineering & Investment: $118m (Oman)
    • National Contracting Company: $126m (Saudi Arabia)

    The second PAHW tender covers the supply, installation and maintenance of 10 main 132/11kV transformer substations for the fourth phase of the project. 

    According to sources, five contractors also submitted bids on 26 August, with A-Ahleia Switchgear making the lowest offer of $103.3m.

    The bids include:

    • Al-Ahleia Switchgear: $103.3m (Kuwait)
    • Industrial Electrical Projects (IEP): $111.7m (Kuwait)
    • Larsen & Toubro: $114m (India)
    • Oman National Engineering & Investment: $118.3m (Oman)
    • National Contracting Company: $126m (Saudi Arabia)

    Both projects were initially tendered in May. As reported by MEED, PAHW previously issued addendums for both substation tenders, revising the qualification requirements for bidders.

    According to the revised requirements, contractors must be approved by Kuwait’s Ministry of Electricity, Water & Renewable Energy and have experience supplying and installing at least 10 132kV substations in Kuwait.

    The addendums also introduced requirements related to transformer and gas-insulated switchgear manufacturing approvals, as well as operational performance records for installed equipment.

    Sabah Al-Ahmad residential city

    Meanwhile, bids remain under evaluation for two 132kV underground cable tenders for the South Sabah Al-Ahmad residential development, tendered by PAHW in May.

    The first cable tender covers the supply, extension and maintenance of 132kV underground cables feeding eight main transformer substations serving the N1, N6 and N11 districts in the project’s fourth phase. 

    MEED previously reported that Egytech Cables, a subsidiary of Egypt’s Elsewedy Electric, was the lowest bidder with an offer of $42.37m.

    The second cable tender covers the supply, extension and maintenance of 132kV underground cables linked to substations serving the N5, N6, N8 and N10 districts in the project’s third phase. 

    Egytech Cables submitted the lowest offer of $39.95m. TBEA Shandong Luneng Taishan Cable submitted a bid of $41.89m, along with Riyadh Cables ($42.05m) and The Contractor General Trading & Contracting ($44.97m).

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19151780/main.jpg
    Mark Dowdall
  • Eni plans to drill 230 oil and gas wells in Egypt

    31 August 2026

    Italy’s Eni is planning to drill 230 new oil and gas wells in Egypt, according to a statement from the country’s Ministry of Petroleum & Mineral Resources.

    Eni’s chief executive, Claudio Descalzi, discussed his plans for exploration and development in Egypt on 25 August during a meeting with Egypt’s Prime Minister Mostafa Madbouly and the Minister of Petroleum and Mineral Resources Karim Badawi.

    During the meeting, Descalzi said that the company has plans to drill 30 exploration wells in addition to 200 development wells.

    Descalzi said his company plans to intensify its exploration and development programmes, especially in the Mediterranean and Western Sahara regions, to increase production of natural gas and crude oil.

    He said that his company plans to use the latest seismic imaging and artificial intelligence technologies as a key part of its exploration and development plans.

    In a separate statement, Eni also said that it is working with UK-headquartered BP and state-owned Egyptian General Petroleum Corporation (EGPC) to reach a final investment decision (FID) for a project to develop the major gas discovery of Denise West in Egypt’s Temsah concession.

    Eni made the discovery in February and says it holds about 2 trillion cubic feet of gas and 130,000 barrels of condensate.

    It is targeting first gas in less than two years and expects to reach FID “in the next few months”, according to its statement.

    Eni’s total investments in Egypt have reached a value of $8.5bn, according to the statement from Egypt’s Ministry of Petroleum & Mineral Resources.

    During the meeting on 25 August, Descalzi also stressed the importance of linking Cyprus’ Cronos gas field to Egyptian export infrastructure.

    In July, Eni reached the FID to develop the Cronos project in deep waters offshore Cyprus, targeting the first Cypriot gas to market in 2028.

    Production is expected to reach a plateau of 500 million standard cubic feet a day.

    In October last year, Egypt and Cyprus signed provisional agreements to connect Cyprus’ Cronos gas field to Egypt’s gas infrastructure.

    The agreements were signed by parties including Egypt’s Ministry of Petroleum and Mineral Resources, Eni, and the French oil and gas company TotalEnergies.

    Connecting the Cronos field to Egypt is expected to involve the tendering of a major subsea pipeline project.

    This will allow gas to be transported and processed in existing Zohr facilities in Egypt, then transferred and liquefied at the Damietta LNG plant for export as LNG to international markets, primarily Europe.

    At the meeting on 25 August, Descalzi said the planned project to connect the Cronos field to Egypt will be considered a model for regional cooperation in the gas sector and will enhance Egypt’s status as a regional gas hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19079059/main.jpg
    Wil Crisp