Since the 2008 financial crisis, the UK economy has struggled to regain its footing. Persistent issues such as low productivity, stunted economic growth, and a housing crisis have plagued the nation. Unemployment remains above 4 percent, industrial output is stagnant, and political instability has only deepened the economic malaise. With four prime ministers in as many years, the UK’s policy landscape has often appeared adrift. In this challenging environment, a potential free trade agreement (FTA) with the Gulf Cooperation Council (GCC) offers a glimmer of hope for economic rejuvenation.

The UK economy demonstrated resilience in the first half of 2024, rebounding strongly after years of pandemic-induced disruptions and Brexit-related adjustments. However, this momentum faltered in the third quarter, where growth stagnated at 0.0 percent. Compounding matters, government bond prices fell sharply at the start of the year, and the British pound lost 1.2 percent of its value against the US dollar. While the International Monetary Fund (IMF) projects a modest 1.6 percent GDP growth in 2025, the Labour government, under Prime Minister Keir Starmer, is keen to accelerate the recovery process. Central to this strategy is the establishment of an FTA with the GCC, negotiations for which began in 2022 under former Prime Minister Boris Johnson.

The proposed FTA promises substantial economic benefits for the UK. According to government estimates, it could boost annual workers’ wages by £600 million (≈749 million) to £1.1 billion and add up to £3.1 billion to GDP by 2035. The agreement is also expected to increase UK-GCC trade by 16 percent, providing a significant uplift to an already robust economic partnership.

Currently, trade between the UK........

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