UK-GCC FTA Negotiations Make Significant Progress

Chief Negotiator tells Asharq Al-Awsat deal will increase trade 16%

Tom Wintle, Chief Negotiator UK-Gulf Cooperation Council FTA, and Acting Chief Negotiator for the GCC Fareed bin Saeed Al-Asaly. (Asharq al Awsat)
Tom Wintle, Chief Negotiator UK-Gulf Cooperation Council FTA, and Acting Chief Negotiator for the GCC Fareed bin Saeed Al-Asaly. (Asharq al Awsat)
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UK-GCC FTA Negotiations Make Significant Progress

Tom Wintle, Chief Negotiator UK-Gulf Cooperation Council FTA, and Acting Chief Negotiator for the GCC Fareed bin Saeed Al-Asaly. (Asharq al Awsat)
Tom Wintle, Chief Negotiator UK-Gulf Cooperation Council FTA, and Acting Chief Negotiator for the GCC Fareed bin Saeed Al-Asaly. (Asharq al Awsat)

Chief Negotiator – UK-GCC FTA, Department for International Trade Tom Wintle revealed that the UK and Gulf Cooperation Council (GCC) countries have made “good progress” in negotiations to sign a free trade agreement (FTA).

Speaking on the eve of the third round of talks kick off between the parties in Riyadh, he told Asharq Al-Awsat that both sides are eager to strike an ambitious, comprehensive and modern deal.

He estimated that the deal would help increase trade between the UK and GCC by no less than 16% and increase the UK’s GDP by around £1.6 billion.

What does the UK aim to achieve from this third round of negotiations in Riyadh?

My team and I are excited to be in Riyadh for Round 3 of negotiations. We have made good progress so far and we want to keep the momentum going. This week we have an opportunity to work with GCC colleagues to build on our work and tackle some of the more challenging parts of the deal.

A free trade agreement (FTA) between the UK and GCC will be a substantial economic opportunity for all of our countries, and a significant moment in the UK-GCC relationship.

How many negotiators are involved from both sides?

In total, more than 100 UK negotiators from across our government are taking part in this round of negotiations. Round 3 is taking place in a hybrid fashion, with a number of UK negotiators travelling to Riyadh and others taking part virtually. We expect similar numbers of GCC negotiators.

How optimistic are you regarding reaching a deal? And do you have a targeted timeline for concluding the negotiations and signing the deal?

There is strong political will on both sides. The UK and GCC have committed to negotiate an ambitious, comprehensive and modern free trade agreement fit for the 21st century. We’ve made significant progress for such an early stage of negotiations and have discussed every policy area in negotiations so far.

We have always been clear that negotiating an ambitious agreement is more important than meeting any particular deadline. Our aim is to secure a deal that delivers the maximum possible benefit for businesses on both sides.

If a deal is signed, what impact will it have on trade between the UK and the GCC?

A UK-GCC FTA will be mutually beneficial for the UK and GCC economies. Our economies complement one another and there is limited direct competition between our businesses. A trade deal will strengthen supply chains, helping to grow the domestic industries that we each are specialized in.

Our analysis shows that a deal is expected to increase trade between the UK and the GCC by at least 16% and increase UK GDP by around £1.6 billion in the long run. A highly ambitious FTA, which the UK is pushing for, could deliver even greater gains. So, the more ambitious we are in negotiations, the greater the gains for everyone. It is a win-win scenario.

Which policy areas are discussed in the negotiations? And which are excluded?

We have discussed all areas that are included in some of the most ambitious and modern FTAs that have been agreed upon around the world in recent years. This involves going beyond the arrangements we already have in place to remove barriers, improve the business environment and make it easier to invest in each other’s economies. We have also discussed working together on modern areas of trade, such as innovation, digital and the environment.

We are keen to do a deal that would bring the biggest possible benefits to UK and GCC businesses. An FTA can support the GCC countries’ Vision Plans and enhance the private sector's ability to drive economic growth. We have genuinely complementary economies and there are exciting opportunities in all sectors.

The GCC is equivalent to the UK’s seventh largest export market. A deep, comprehensive FTA with the whole bloc will deliver the greatest economic and strategic benefits for both sides.

Our priority is an ambitious agreement with the whole of the GCC and there is strong political will from all sides. Within this agreement, there is the opportunity to secure additional commitments where some members can go further. We will make full use of these opportunities to ensure we maximize the benefits with individual GCC Member States.

Has Brexit bolstered the UK’s negotiating position?

The UK took control of its trade policy when we left the European Union. We are the fifth biggest economy in the world and the second biggest services exporter. Now we are independent we can negotiate modern, comprehensive and ambitious FTAs with partners like the GCC.

We have already signed trade deals with 71 countries, plus the European Union that account for £814 billion of trade, and we are now negotiating new deals with GCC, India, Canada, Mexico and Israel.

By the same token, do current economic woes in the UK weaken its negotiating hand?

The UK was the fastest-growing economy in the G7 last year, with capital investment at record levels of around £600 billion maintained over the next five years. We are the sixth biggest investor in the GCC, with a total of £31 billion invested in the last 20 years. Our bilateral trading relationship increased by 76% according to the latest annual figures, from £23.6 billion to £54.5 billion. However, the real strength of our relationship is measured in decades and centuries: ours is a long-term partnership, not one based on economic cycles.



Saudi Arabia Among Top 10 Investors in Tunisia With Over $375 Mln

 Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)
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Saudi Arabia Among Top 10 Investors in Tunisia With Over $375 Mln

 Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)
Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef speaks during the business forum in Riyadh (Asharq Al-Awsat)

Saudi investments in Tunisia have gathered momentum over recent years, placing the kingdom among the country’s top 10 foreign investors, with cumulative investments surpassing $375 million by the end of 2024.

The figures were disclosed at the Saudi-Tunisian Business Forum, held in Riyadh on Monday on the sidelines of the 12th session of the Saudi-Tunisian Joint Committee, where officials and business leaders met to explore ways to deepen investment ties between the two countries.

The forum was attended by Saudi Minister of Industry and Mineral Resources Bandar bin Ibrahim Alkhorayef and Tunisia’s Minister of Economy and Planning, Dr. Samir Abdelhafidh.

The forum was organized by the Ministry of Industry and Mineral Resources in cooperation with the Ministry of Investment and the Federation of Saudi Chambers, with the participation of official delegations and more than 300 representatives from the public and private sectors in both countries.

High-level visits

In his opening remarks, Alkhorayef emphasized the strength of long-standing Saudi-Tunisian relations, which are rooted in the shared vision of the two countries’ leaderships and reinforced by high-level reciprocal visits.

He said these visits had formed a cornerstone in supporting economic momentum and driving recent growth in bilateral trade.

Alkhorayef described the Saudi Tunisian Business Forum as an important milestone for enhancing investment partnerships and transforming promising opportunities into projects with tangible economic impact.

“We are betting today on investors, business leaders, and private sector champions in both countries to lead growth in promising sectors, including advanced industries, tourism, renewable energy, and mining,” he said.

“Our role as governments is to enable, legislate, and facilitate procedures, while the private sector’s role is to build, innovate, and turn these enablers into productive projects, job opportunities, and shared success stories that reflect the value and depth of the partnership, toward comprehensive economic integration based on the competitive advantages of both countries.”

Investment fundamentals

For his part, Abdelhafidh said the Saudi Tunisian Business Forum serves as a practical platform for strengthening investment partnerships, noting the steady rise in Saudi investments in Tunisia in recent years, with the kingdom among the top 10 investing countries and total investments exceeding $375 million by the end of 2024.

He said Tunisia offers competitive investment fundamentals, including a strong pool of engineering and technical talent, as well as the capacity to absorb large-scale projects, particularly in renewable energy, automotive and aerospace components manufacturing, pharmaceuticals, and the food industry.

Supply chains

In a related context, Saudi Tunisian Business Council Chairman Dr. Omar Al Ajaji highlighted the importance of the private sector’s role in strengthening economic cooperation between the two countries.

He said the forum helps business communities explore promising opportunities and opens broader horizons for integration in key sectors, particularly industry, technology, and supply chains.

Also speaking at the forum, Dr. Samir Majoul, President of the Tunisian Union of Industry, Trade, and Handicrafts, emphasized the need to create a regulatory environment conducive to investment and to establish sustainable strategic partnerships that foster trade and investment flows between the kingdom and Tunisia.

The Saudi-Tunisian Business Forum reflects the two countries’ shared vision of building effective investment partnerships that expand cooperation and economic integration, support growth in bilateral trade, align with the goals of Saudi Vision 2030, and advance comprehensive and sustainable development in both countries.


Iran's Central Bank Chief Resigns

A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)
A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)
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Iran's Central Bank Chief Resigns

A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)
A man walks past a sign at a currency exchange bureau as the value of the Iranian rial drops, in Tehran, Iran, December 20, 2025. (Via Reuters)

Iran's central bank chief, Mohammad Reza Farzin, has resigned, the semi-official ​Nournews agency reported on Monday, citing an official at the president's office, as the country battles a slump in its rial currency and high inflation.

The rial, which has been falling as the Iranian economy has suffered from the impact of Western sanctions, fell to a ‌new record low on ‌Monday at around 1,390,000 ‌to ⁠the ​dollar, according ‌to websites displaying open market rates.

Iranian media outlets reported there had been demonstrations in the capital Tehran, mainly by shop owners, against the economic situation.

Farzin has headed the central bank since December 2022. His resignation will be reviewed by President Masoud ⁠Pezeshkian, the official added, according to Nournews.

Iranian state media reported ‌later on Monday, citing the communications ‍and information deputy ‍at the Iranian president's office, that former Economy ‍Minister Abdolnaser Hemmati will be appointed as the new central bank chief.

Iranian media have said the government's recent economic liberalization policies have put pressure on the ​open-rate currency market.

The open-rate market is where ordinary Iranians buy foreign currency, whereas businesses typically ⁠use state-regulated rates.

The reimposition of US sanctions in 2018 during President Donald Trump's first term has harmed Iran's economy by limiting its oil exports and access to foreign currency.

The Iranian economy is at risk of recession, with the World Bank forecasting GDP will shrink by 1.7% in 2025 and 2.8% in 2026. The risk is compounded by rising inflation, which hit a 40-month high of ‌48.6% in October, according to Iran's Statistical Center.


Lebanon Signs Deal to Purchase Natural Gas from Egypt

A diesel storage tank is seen at the Middle East Oil Refinery Company (MIDOR) in Alexandria, Egypt, November 7, 2018. REUTERS/Amr Abdallah Dalsh
A diesel storage tank is seen at the Middle East Oil Refinery Company (MIDOR) in Alexandria, Egypt, November 7, 2018. REUTERS/Amr Abdallah Dalsh
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Lebanon Signs Deal to Purchase Natural Gas from Egypt

A diesel storage tank is seen at the Middle East Oil Refinery Company (MIDOR) in Alexandria, Egypt, November 7, 2018. REUTERS/Amr Abdallah Dalsh
A diesel storage tank is seen at the Middle East Oil Refinery Company (MIDOR) in Alexandria, Egypt, November 7, 2018. REUTERS/Amr Abdallah Dalsh

Lebanon said Monday it plans to purchase natural gas from Egypt, seeking to reduce its reliance on fuel oil for its ageing power plants in a country hamstrung by regular electricity cuts.

The electricity sector has cost Lebanon more than $40 billion since the end of its 1975-1990 civil war, and successive governments have failed to reduce losses, repair crumbling infrastructure or even guarantee regular power bill collections.

Residents rely on expensive private generators and solar panels to supplement the unreliable state supply.

Prime Minister Nawaf Salam's office said in a statement that the memorandum of understanding between Lebanon and Egypt sought "to meet Lebanon's needs for natural gas allocated for electricity generation".

It was signed by Lebanese Energy Minister Joe Saddi and Egyptian Petroleum Minister Karim Badawi, according to AFP.

"Lebanon's strategy is first to transition to the use of natural gas, and second, to diversify gas sources," Saddi said, adding that "the process will take time because pipelines need rehabilitation".

Lebanon will "contact donor agencies to see how they can help finance the rehabilitation" of the Lebanese section of the gas pipelines, he said, adding that repair work would take several months.

President Joseph Aoun said the memorandum of understanding was "a practical and essential step that will enable Lebanon to increase its electricity production".

A statement from Cairo's petroleum and mineral resources ministry said that "Egypt is fulfilling its role in supplying Lebanon with natural gas, with the aim of supporting energy security for Arab countries".

In 2022, Lebanon signed a deal to import natural gas from Egypt and Jordan via Syria to boost power supply, but the contracts were never implemented due to financing issues and US sanctions on Syria.

Washington recently lifted it Syria measures following the fall of longtime ruler Bashar al-Assad last year.

In April, Lebanon signed a $250 million agreement with the World Bank to modernise its electricity sector.