Late in 2008 all talks between the GCC and the EU had been suspended and no free trade deal was agreed upon though building the GCC & British relations has been a proposed idea over decades through numerous measures like abolishing customs duties and creating a free-trade agreement.

Being a part of the European Union (EU) had always held the UK back but this scenario is fast changing with Brexit getting activated and the free trade zone between the GCC and UK is now a lot closer with both sides keen to develop on their commercial, trade and historical relations thus serving the interests of both parties.

The GCC Summit held in Manama last year was the first step in this direction and now the UK Ministry of Finance has worked on a study with predicated results - including political and strategic ones - for finalising a free-trade agreement with the Gulf States. Accordingly the GCC have also put forward a first draft for the same. All these proactive steps are positive indicators for the conclusion of this agreement at the earliest. This works well with the GCC who already have similar agreements with many countries and blocs.

BREXIT

The UK is keen to conclude the agreement primarily to offset some of the probable economic and commercial losses it faces on exiting the EU, which account for more than half of its trade. Added to this is its currency dip after the Brexit referendum and the fast-growing Gulf markets are seen as an important outlet for British exports. This gives its exports a competitive edge and achieving exceptional gains though its imports from the GCC with well priced products such as petroleum, petrochemical and aluminium products.

In the past unreasonably high customs duties imposed by the EU on such products had led to a decline in Gulf exports.

Any free trade agreement between the GCC states and UK is expected to see the existing volume of trade amounting to $27 billion (Dh99 billion) doubled. Gulf investments in the UK exceed $140 billion, most of which are focused on real estate. It is also expected that the UAE-British trade will go from $19 billion in 2015 to $33 billion in 2020.

UNPRECEDENTED GROWTH

Collaboration in other fields like investments, financial services and tourism are also expected to see unprecedented growth. This would make the UK the most important partner for the GCC states coming at the expense of other EU countries, which are facing tough times.

In response to this positive scenario, the Gulf's private sector including chambers of commerce and industry should plan for notable changes in the GCC-Britain relationship. Both the private sectors should also exploit these emerging opportunities.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.