Bahrain and UK Strengthen Economic Ties with GCC-UK Free Trade Agreement

Strategic Insights -

Shaikh Fawaz bin Mohammed Al Khalifa, the Kingdom of Bahrain's Ambassador to the United Kingdom, participated in a seminar hosted by the Middle East Association to discuss the importance of the free trade agreement between the Gulf Cooperation Council (GCC) and the United Kingdom. The seminar included Lord Leicester, a member of the UK House of Lords and the parliamentary committee on Bahrain, and Jack Morton Burt, Head of Communications on the Free Trade Agreement at the UK Department for Business and Trade. The agreement aims to drive economic growth and job creation in both countries, particularly in financial services, technology, and industry. The seminar also highlighted Bahrain's supportive investment environment, which includes skilled national talent, flexible legislation, and a strategic location at the heart of the Gulf.

Key Takeaways:

  • The GCC-UK free trade agreement aims to support development and trade exchange for mutual benefit, in line with the visions of the GCC leaders.
  • The agreement will drive economic growth and job creation in both countries, particularly in financial services, technology, and industry.
  • The Bahraini private sector has committed to investing AED8 billion in the UK under the agreement.
  • The agreement will increase Bahrain's attractiveness to British investors.
  • Negotiations on the free trade agreement have reached an advanced stage, with eight rounds of talks between Riyadh and London.
  • The agreement will mark a turning point in economic relations between the GCC and the UK, with emphasis on key sectors such as technology, digital economy, life sciences, creative industries, education, artificial intelligence, financial services, and renewable energy.
  • The agreement will provide momentum for enhanced trade, investment, and technology cooperation between the GCC and the UK.
  • Bahrain's supportive investment environment, including skilled national talent, flexible legislation, and a strategic location at the heart of the Gulf, will enhance the benefits of the agreement.
  • Birmingham and UK's House of Lords member Lord Leicester expressed confidence that the free trade agreement will boost trade volume and investment.
  • Bahrain's Ambassador to the UK, Shaikh Fawaz bin Mohammed Al Khalifa highlighted the Kingdom's supportive investment environment.

Statistics:

  • The GCC-UK free trade agreement aims to boost trade volume and investment.
  • The agreement will drive economic growth and job creation in both countries.
  • The Bahraini private sector has committed to investing AED8 billion in the UK under the agreement, a significant increase from the AED3 billion committed under the first partnership signed in 2023.
  • The agreement will increase Bahrain's attractiveness to British investors by highlighting its supportive investment environment, including skilled national talent, flexible legislation, and a strategic location at the heart of the Gulf.
  • The agreement will mark a turning point in economic relations between the GCC and the UK, with emphasis on key sectors such as technology, digital economy, life sciences, creative industries, education, artificial intelligence, financial services, and renewable energy.

Sources:

  • Bahrain News Agency (2025)
  • Middle East Association (2025)
  • UK Department for Business and Trade (2025)
  • Bahrain's Ambassador to the UK, Shaikh Fawaz bin Mohammed Al Khalifa (2025)
  • Lord Leicester (2025)
  • Jack Morton Burt (2025)
  • Nicholas Hopton, Director General of the Middle East Association (2025)