Boost for UK- Bahrain trade and investment

The agreement covers all six GCC member states — Bahrain, Saudi Arabia, United Arab Emirates, Kuwait, Oman and Qatar — and is expected to increase UK-GCC trade by nearly 20%, adding an estimated £15.5 billion annually.

For Bahrain, the deal is expected to strengthen trade and investment ties with Britain by removing tariffs on all existing Bahraini exports to the UK, simplifying customs procedures and improving access for service-sector companies.

The agreement also delivers major gains for Bahrain’s financial sector, including fintech, banking and insurance firms, through commitments on the free flow of financial data and enhanced regulatory cooperation.

Professionals such as engineers, lawyers and accountants are also set to benefit from easier cross-border mobility through streamlined visa procedures and mutual recognition of qualifications.

Current trade in goods and services between the UK and Bahrain stands at around £1.3 billion, while the agreement builds on the existing £2 billion UK-Bahrain Strategic Investment and Collaboration Partnership.

Consumers on both sides are also expected to benefit. British shoppers will gain greater access to Gulf products, while Bahraini consumers are likely to see lower prices on a range of UK food and beverage imports, including smoked salmon and cheddar cheese. UK food and drink exports to Bahrain are currently valued at £32 million annually.

H.E. Abdulla bin Adel Fakhro, Bahrain’s Minister of Industry and Commerce, said the conclusion of negotiations reflected the GCC’s commitment to strengthening strategic partnerships with major global economies, particularly the UK.

He said the agreement aligns with the Gulf bloc’s goals of economic integration and sustainable development, while supporting the aspirations of GCC leaders.

H.E. Alastair Long, British Ambassador to Bahrain, described the agreement as “a historic milestone in UK-Bahrain relations,” saying it would unlock further opportunities across financial services, technology, clean energy, healthcare and education.

Meanwhile, British Chamber of Commerce Bahrain Vice Chair Paula Boast welcomed the conclusion of negotiations, saying businesses in Bahrain were well positioned to benefit from the commercial and operational advantages of the deal.