The Bahraini Minister of Industry has described the trade agreement between the United Kingdom and Gulf states as a landmark achievement. Abdulla bin Adel Fakhro stated that the deal represents a win-win for both the UK and the Gulf nations. This free trade agreement is also expected to bring significant benefits to the UK, providing access to the vast and affluent consumer market in the Middle East for large-scale, tariff-free trade.

Bahrain's Minister of Industry and Commerce, Abdulla bin Adel Fakhro, said on Wednesday that the free trade agreement announced that day is of "great significance" and a win-win for both the UK and the Gulf Cooperation Council (GCC). "This is a substantial free trade agreement, with significant bilateral trade volumes and considerable mutual investment between the countries," he told CNBC's Dan Murphy, predicting that the pact would drive further growth in these areas. "We genuinely believe this is a landmark achievement; it is crucial for both the GCC and the UK," he added.

The GCC is currently navigating a period of turbulence: the US-Iran conflict has impacted the region's core oil and gas industries, exports, and economy. Ministers have emphasized the GCC's continued openness to business cooperation, expressing concerns that the conflict could deter investors. "Iran's provocations against the GCC are unjustified, unacceptable, and violate international law; the GCC countries have responded wisely and with restraint, consistently focusing on stability, maintaining, and accelerating economic growth," Fakhro said. "Today, the GCC as a whole is more united, stronger, and more integrated than ever before, concentrating on strengthening key areas such as industrial manufacturing and supply chains."

Mutual Benefit The GCC comprises Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates, with a combined GDP exceeding $2 trillion and a population of over 57 million. According to the UK's Department for Business and Trade, once fully implemented, the agreement is expected to eliminate approximately £580 million ($780 million) in tariffs annually based on current UK exports to the GCC, with £360 million of those tariffs removed on the day the agreement takes effect.

Tariffs on certain UK exports to the Gulf will be eliminated immediately, including on automobiles, turbines, aerospace components, and food products such as cheddar cheese and chocolate. Tariffs on other products, like electric vehicles, will be phased out over transition periods of 5 or 10 years.

Fakhro noted that the UK leads in fintech, services, and advanced manufacturing, and the agreement is also beneficial for the Gulf region: "We anticipate significant increases in cooperation in these sectors." He added that the Gulf's petrochemical industry would also greatly benefit.

Announcing the deal on Wednesday, the UK government hailed it as a major victory and a historic agreement, projecting it could boost the UK economy by around £3.7 billion ($4.9 billion) annually in the long term. "The UK is the first G7 country to secure a trade deal with the GCC, which is expected to boost the economy and raise wages over the coming decades—deepening economic partnership with the region, supporting jobs long-term, and enhancing national resilience," the UK Department for Business and Trade said in a statement.

The UK government stated that this agreement with the GCC reflects the UK's commitment to solidarity and long-term mutual benefit with its Gulf partners. The deal comes as timely positive news amid economic pressures on the UK from the Iran conflict and political challenges for Prime Minister Keir Starmer. Starmer commented, "Today's agreement is a huge win for UK businesses and workers—people will see higher wages and more opportunities in the coming years." He added, "The Gulf states are valued economic partners; this agreement deepens our relationship, building trust and unlocking new potential for trade and investment."