Trade and investment between Bahrain and the United Kingdom are set for an unprecedented boost following the successful conclusion of negotiations for a modern Free Trade Agreement (FTA) between the UK and the GCC.
The landmark deal was finalised yesterday, elevating bilateral co-operation across trade, investment, defence and culture to a new strategic level.
With current UK-Bahrain trade standing at a robust £1.3 billion ($1.7bn), the overarching pact is projected to skyrocket total bilateral trade by nearly 20 per cent, adding £15.5bn annually to the combined economies. The accord directly complements the existing £2bn UK-Bahrain Strategic Investment Partnership.
Under the agreement, Bahraini businesses will export to the UK faster and tariff-free on day one. It also slashes red tape for services and corporate mobility, introducing unified frameworks for professional qualifications and longest-ever business stay commitments.
For the financial sector, groundbreaking rules on data flows will allow Bahraini fintech, banking and insurance firms to expand seamlessly into the UK market.
Beyond commerce, the treaty ensures stability amid global volatility, explicitly highlighting the UK’s unwavering solidarity and defence co-ordination with Gulf partners against reckless regional attacks by Iran.
Industry and Commerce Minister Abdulla bin Adel Fakhro affirmed that the signing in London marks a major strategic leap. Speaking under Bahrain’s current presidency of the 46th GCC session, Mr Fakhro noted the agreement will accelerate regional diversification by easing market access, slashing duties and fostering investment partnerships.
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Hailing the milestone, British Ambassador Alastair Long said: “This is a significant moment which marks a historic milestone in UK-Bahrain relations.
“We look forward to working closely with Bahraini partners to realise its full potential, supporting wider GCC ambitions to diversify and grow key sectors such as financial services, technology and education.”
He added that the agreement will unlock fresh opportunities across priority areas including clean energy, healthcare and advanced technologies.
Local business leaders widely praised the conclusion of the negotiations.
Paula Boast, vice-chair of the British Chamber of Commerce Bahrain (BCCB) and partner at Charles Russell Speechleys, added: “We are delighted that the FTA has reached a positive conclusion.
“Our BCCB members provided active feedback on key market access barriers, and they are ready to reap the operational and business benefits. Investment remains a vital component for our economy, and ‘Business Friendly Bahrain’ remains our key message.”
avinash@gdnmedia.bh
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