MUSCAT, OCT 20
The historic Free Trade Agreement (FTA) between the Gulf Cooperation Council and the UK on May 20 in London has been hailed as a milestone in the mutual relations between the Sultanate of Oman and the UK that share strong bilateral relations.
The agreement which was finalised by the GCC Secretary-General Jasem bin Mohamed al Budaiwi and UK's Trade Policy Minister Sir Chris Bryant, is the first of its kind that the six-nation GCC bloc, which includes Oman, Bahrain, Kuwait, Qatar, Saudi Arabia and the UAE, has signed a trade deal with a G7 economy.
"The pact is built upon a centuries-old relationship between Muscat and London. The two countries first signed a treaty of friendship in 1798, and in recent years have deepened ties through the Comprehensive Agreement on Enduring Friendship signed in 2019 and the Sovereign Investment Partnership between the Oman Investment Authority and the UK's Office for Investment in 2022," a source from the British Embassy in Muscat said.
Boost for Oman Vision 2040 and investment: The deal, which is designed to give Omani investors more certainty in the UK and to attract more GCC investment into Britain, is also a boost for Oman Vision 2040 and investment initiatives. It is designed to give Omani investors more certainty in the UK and to attract more GCC investment into Britain, besides offering support to the Smart Industries Initiative, which will encourage Omani co-investment in British sectors like clean technology, life sciences and digital infrastructure. At the same time, it will make it easier for innovative British small businesses to establish themselves in Oman and use the Sultanate of Oman as a gateway to the wider Gulf.
“The agreement is seen as strongly aligned with Oman Vision 2040. British expertise in renewable energy, fintech, advanced manufacturing and digital trade is expected to support Oman's efforts to diversify its economy and strengthen food security,” Maggie Jeans OBE, representative of the Oman British Business Council (OBBC), said.
The Omani British Society was formed in 1991 to demonstrate the longstanding close relationship between the Sultanate of Oman and the United Kingdom and to promote bilateral trade, partnerships and investment between the two countries. Between 2003 and his accession to the throne, the patron was His Majesty Sultan Haitham bin Tarik.
The deal includes dedicated chapters on services, digital trade, support for small and medium enterprises, and a trade remedies mechanism that allows either side to temporarily protect local industries if imports surge.
It also supports the Smart Industries Initiative, which will encourage Omani co-investment in British sectors like clean technology, life sciences and digital infrastructure. At the same time, it will make it easier for innovative British small businesses to establish themselves in Oman and use the Sultanate of Oman as a gateway to the wider Gulf.
Exporters are the biggest beneficiaries. Official UK figures put current annual trade between Oman and the UK at £1.8 billion.
Under the new arrangement, Omani exporters get duty-free access to the British market for all existing exports from day one of the agreement, along with faster customs procedures and less paperwork.
The wider UK-GCC trade relationship is valued at £53 billion. The British government projects the FTA will increase that by almost 20per cent in the long term - adding about £15.5 billion a year - and add £3.7 billion annually to the UK economy.
In total, about £580 million in duties will be eliminated each year once the deal is fully in effect, with £360 million of that removed immediately. The GCC has agreed to liberalise 90 per cent of its tariff lines within a decade.
“For British companies selling to Oman, the benefits include zero tariffs on cars, aircraft parts, electronics, medical equipment, luxury goods and many food items. Products such as cheese, chocolate, butter and cereals will enter Oman duty-free. Customs clearance will be guaranteed within 48 hours, and just six hours for perishable goods,” said the embassy source.
A vote of confidence: The agreement, which is awaiting formal legal finalisation, signature, and domestic ratification procedures including UK parliamentary scrutiny under the Constitutional Reform and Governance Act (CRaG) and individual approvals by each GCC member state, is expected to be implemented around late 2026 to Q1 2027.
The UK described the deal as a vote of confidence in the region at a time of heightened geopolitical tension.
"The UK's ties with the Gulf are deep, historic, and future-focused," the official statement said. "It is founded on our shared commitment to open trade, mutual prosperity and the long-term economic success of all our nations," the source said.
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