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Total trade between the UK and GCC countries rose by more than 70 percent to \u00a364.5 billion ($82.7 billion) in the year to the end of March, driven by rising oil prices and a demand for services as Gulf states move to diversify their economies.<\/p>\n
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According to an AGBI analysis of statistics released by the UK\u2019s Department for Business and Trade on Tuesday, trade in goods and services eclipsed last year\u2019s figure of \u00a337 billion.<\/p>\n
Over \u00a315 billion of trade consisted of UK imports of oil and gas from GCC countries.<\/p>\n
The fourth round of negotiations on a free trade agreement took place last week in London.<\/p>\n
Discussions were held across 23 policy areas over 44 sessions and \u201cgood progress\u201d was made, a government statement said.<\/p>\n
Freddie Neve, senior Middle East associate at analyst Asia House, told AGBI that oil still accounts for a significant portion of UK-Gulf trade.<\/p>\n
Average prices rose to $100 a barrel last year, compared with almost $70 in 2021.<\/p>\n
\u201cThe UK has increased its purchases of Gulf oil and gas since the start of the Ukraine conflict to compensate for supplies it previously received from Russia,\u201d Neve said.<\/p>\n
Neve added that trade also continues to be boosted by the GCC\u2019s efforts to diversify away from oil. This has encouraged growth in Gulf imports of UK professional services to assist delivery of various projects.<\/p>\n
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UK exports of services to the region rose significantly last year to nearly \u00a318 billion.<\/p>\n
Saudi Arabia, for example, is undergoing a major transformation with giga-projects such as Neom taking shape.<\/p>\n
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Chris Innes-Hopkins, UK executive director of the Saudi British Joint Business Council, said the latest figures reflected a \u201cgrowing engagement\u201d by UK companies in new sectors of the fast-growing Saudi economy.<\/p>\n
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\u201cThe services sector is particularly buoyant and it\u2019s good to see many smaller UK companies getting involved in fintech, creative industries and education opportunities among others,\u201d he said.<\/p>\n
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Foreign secretary James Cleverly highlighted the UK\u2019s growing partnership with Gulf countries last week during a three-day visit to Qatar, Kuwait and Jordan.<\/p>\n
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The UK government has announced that citizens from Gulf countries and Jordan will be among the first to benefit from the UK\u2019s new Electronic Travel Authorisation visa scheme, which will make travel to the British isles cheaper and easier for visitors.<\/p>\n
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According to the Department for Business and Trade figures, the UAE was the UK\u2019s largest trade partner in the Gulf last year, followed by Saudi Arabia.<\/p>\n
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Bradley Jones, executive director of the UAE-UK Business Council, said the Cop28 environmental conference, which will be hosted in Dubai later this year, is \u201creally drawing attention\u201d to opportunities for UK-UAE collaboration in sustainability and decarbonisation.<\/p>\n
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Lord Dominic Johnson, a minister of state in the UK\u2019s Department for Business & Trade, added: \u201cWe are seeing extraordinary rates of growth for British companies operating in the Gulf.<\/p>\n
\u201cI spoke to one of the big accounting firms. They\u2019re looking at 35 per cent annual growth.\u201d<\/p>\n
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He said that he met a number of construction and infrastructure companies last month at the prime minister\u2019s business reception in Downing Street who are reporting \u201dphenomenal rates of growth\u201d, particularly in Saudi Arabia.<\/p>\n
UK secretary of state for business and trade, Kemi Badenoch, visited Qatar, Saudi Arabia and the UAE in May to maintain momentum on the potential trade deal.<\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Total trade between the UK and GCC countries rose by more than 70 percent to \u00a364.5 billion ($82.7 billion) in the year to the end of March, driven by rising oil prices and a demand for services as Gulf states move to diversify their economies. According to an AGBI analysis of statistics released by […]<\/p>\n","protected":false},"author":3,"featured_media":580,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[127,39,130,87,115,11,15,103],"tags":[564,568,566,562],"class_list":["post-574","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis-en","category-business-economy-en","category-featured-en","category-gcc-en","category-interviews-en","category-news","category-press-releases","category-reports-research","tag-gulf-states","tag-kemi-badenoch","tag-oil","tag-united-kingdom"],"yoast_head":"\n