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Keir Starmer Visits Saudi Arabia in Bid to Secure Gulf Trade Deal

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Prime Minister Sir Keir Starmer has traveled to Saudi Arabia in hopes of securing a long-awaited free trade agreement with the Gulf Co-operation Council (GCC). This move is seen as crucial for restoring the UK’s pro-business reputation, which has recently been called into question following criticism of Labour’s budget.

The GCC includes six wealthy nations—Saudi Arabia, the United Arab Emirates, Qatar, Kuwait, Oman, and Bahrain—which together have a trading relationship with the UK worth £57 billion annually. Under the previous Conservative government, negotiations for a free trade deal were underway, with the aim to finalize it by the end of the year. However, talks were interrupted by the general election, and Starmer’s government has since resumed discussions, hopeful that a deal could add £1.6 billion to the UK economy in the long term.

For Starmer, securing the deal would help demonstrate that Britain remains “open for business” and is committed to fostering economic growth, especially after the Labour government’s recent budget measures met with criticism from business leaders. The UK’s trade links with the GCC, particularly with Saudi Arabia and the UAE, are already significant, with £23 billion and £17 billion worth of trade, respectively. More than 7,000 UK businesses export to Saudi Arabia, supporting nearly 90,000 jobs.

Starmer’s visit follows recent high-profile exchanges between the UK and the Gulf region, including the Emir of Qatar’s visit to the UK and the announcement of a new partnership involving Graphene Innovations Manchester. The company is set to open the first commercial production of graphene-enriched carbon fibre in Saudi Arabia’s Neom project, which will create thousands of skilled jobs and establish a £250 million research hub in Greater Manchester.

However, negotiations for a free trade deal face challenges, as the GCC seeks assurances that its industries, particularly finance and services, will remain competitive. The UK, meanwhile, needs to protect its health services and maintain high quality standards while navigating complex political dynamics. Although Saudi Arabia’s recent reforms have received some Western praise, human rights issues, including capital punishment policies, remain sensitive topics, which the government prefers to address privately.

Starmer’s push for a GCC deal comes as global trade dynamics shift, with US President-elect Donald Trump threatening tariffs that could impact both British and European exporters. Strengthening ties with the GCC would provide British businesses with diversification opportunities, reducing the potential impact of any protectionist measures from the US.

In addition, the UK is set to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on December 15, which is expected to boost the UK economy by £2 billion annually. Securing a GCC deal would complement this partnership, further solidifying the UK’s position in global trade.

As negotiations continue, all eyes are on the Gulf, where a successful trade agreement could mark a new chapter in the UK’s post-Brexit trade strategy.

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