Multi-billion-pound UK and Gulf trade deal is “landmark moment” for UK plc says HCR Law partner

The UK has become the first G7 country to agree a trade deal with the Gulf Cooperation Council (GCC) – which the government estimates could boost the UK economy by £3.7bn every year.

The deal was announced on May 20, and Raj Pahuja, a Partner in our Commercial Law team and Joint Head of HCR’s Middle East hub, lent his support to the official government announcement.

Raj has worked across the Middle East for more than a decade advising on corporate and commercial law.

He said: “The UK GCC Free Trade Agreement (FTA) marks a landmark moment for UK businesses and the Gulf region. As the most significant agreement of its kind in Europe with the GCC, it opens the door to substantial new opportunities across key sectors and has the potential to drive major commercial growth.

“We look forward to supporting our clients as they navigate this new landscape and maximise the benefits of the agreement.”

The GCC comprises the Kingdom of Bahrain, the State of Kuwait, the Sultanate of Oman, the State of Qatar, the Kingdom of Saudi Arabia, and the United Arab Emirates (UAE).

He added: “The FTA will lock in valuable legal certainty for UK businesses operating across sectors, improving regulatory transparency and efficiency.”

UK professionals should also be able to reduce administration and costs, and provide greater certainty for businesses seeking to operate abroad.

Once the agreement is fully implemented the government estimates the deal will remove an estimated £580m in duties a year, based on current UK exports to the GCC.

A total of £360 million worth of this will be removed on day one of the agreement entering into force – as well as renewed certainty for services firms, making it easier for UK companies to expand and partner in the Gulf, the government said.

Prime Minister Keir Starmer said: “The Gulf states are valued economic partners and this agreement deepens that relationship, building trust and unlocking new possibilities for trade and investment.”

Businesses from across the UK joined HCR Law’s Raj Pahuja in supporting the announcement, including the UK automotive industry alongside high street names like Holland & Barrett standing to gain significantly from the deal, through tariff reductions, stronger intellectual property protections and simplified customs processes.

UK services – which account for around 80% of the British economy and around half of the UK exports to GCC – will gain guaranteed market access under the deal.

In 2024, there were more than 400,000 business visits made from the UK to the Middle East so this deal will help British professionals including lawyers, engineers and consultants to travel more easily and stay longer in the region.

Raj added: “The government says it could unleash the power of international investment and ensure investment disputes are resolved fairly and transparently. This will be very good news for our clients.

“We regularly advise on cross-border transactions, employment and immigration matters, private wealth structuring and multi-jurisdictional disputes, acting as a central coordinating adviser across jurisdictions. With deep expertise in specialist sectors including Education, Healthcare, and Technology and Innovation, we are well-positioned to support clients in these high-growth areas as they explore opportunities under the new FTA.”

“Our experience supporting clients with interests in the Middle East see us regularly working alongside local counsel to advise on inbound investment, corporate structuring and asset protection, ensuring clients benefit from both our UK expertise and on-the-ground regional insight.”