Landmark UK–GCC trade deal opens major boost for Kuwait-UK trade and investment

KUWAIT CITY, May 21: The United Kingdom and the Gulf Cooperation Council (GCC) have today May 20th 2026 concluded talks on a modern and ambitious Free Trade Agreement [FTA], which will support goods exporters, services suppliers and investors in the UK and Kuwait.

This deal reflects the UK's commitment to long-term partnership with all six members of the GCC - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE - and is founded upon our shared commitment to open trade, mutual prosperity, and the long-term economic success of all our nations.

The UK's ties with the Gulf are deep, historic, and future-focused.  As the first trade deal between the GCC and any G7 nation, the new agreement will provide significant new opportunities for business and collaboration between Kuwait and the UK. 

The agreement also reflects our solidarity with our Gulf partners. The UK has unequivocally condemned Iran's reckless attacks and worked with Gulf partners to support their self-defence, coordinating closely to find a long-term, sustainable solution. When the wider global environment is uncertain, this deal's rules-based framework provides the legal certainty and long-term stability that businesses on both sides need to plan, invest and grow with confidence, supporting jobs and raising living standards in the UK and across the Gulf

Trade in goods and services between both countries currently stands at £5.2 billion, supporting jobs, investment and economic growth. Across the GCC as a whole, the deal is projected to boost bilateral trade by nearly 20%, adding £15.5 billion annually. The UK-GCC deal will help strengthen these trade and investment ties, unlocking fresh opportunities for businesses, entrepreneurs, and communities in both countries.

The agreement provides certainty and confidence to Kuwait, helping to cement the UK’s position as a key investment destination for GCC investment.

Kuwaiti businesses will be able to export to the UK more quickly and cheaply. The agreement cuts red tape, simplifies customs procedures and removes tariffs on all current exports to the UK at entry into force of the agreement. 

With UK exports of food and drink to Kuwait valued at £56.5 million annually, the agreement provides greater access to some of the UK’s most iconic products, making it easier and cheaper for Kuwaiti consumers to access high-quality food such as smoked salmon, cheddar cheese and chocolates.

In addition, there are many benefits for Kuwait’s services businesses and professionals, with the GCC and UK agreeing to lock-in rules and regulations on doing business. This guaranteed market access will be supported with groundbreaking commitments on the free flow of financial data, supporting fintech, banking, and insurance firms to expand into the UK.

On business travel, the deal establishes frameworks for recognising professional qualifications, making it easier for engineers, lawyers, accountants, and other skilled professionals to work across borders. Streamlined visa processes and the longest business stay commitments ever agreed by the GCC will support professionals travelling between Kuwait and the UK.

UK Business and Trade Secretary Peter Kyle said:

“Today’s agreement marks a significant step forward in our partnership. By working together, we are opening new opportunities for trade, investment, and innovation that will benefit businesses and communities across our nations.”

British Ambassador to the State of Kuwait, Qudsi Rasheed states:

“The conclusion of negotiations on the UK – GCC Free Trade Agreement marks an important milestone in the longstanding relationship between the United Kingdom, Kuwait and the wider Gulf region. For more than 250 years, the UK and Kuwait have enjoyed a strong trading partnership which continues to grow. This agreement reflects the UK’s commitment as a trusted long-term partner to Kuwait, building prosperity and opportunity together.”

UK Country Trade Director to Kuwait, Naz Demir says:

“The agreement opens an exciting new chapter in the UK – Kuwait economic relationship. It will make trade quicker, simpler and more cost effective, creating new opportunities across sectors including professional services, technology, healthcare, food, investment and infrastructure. We look forward to continuing to work closely with our Kuwaiti partners to help businesses and investors benefit from these new opportunities.”

Statistics sources:

Trade in goods and services sourced from: ONS UK total trade: all countries Q4 2025