Author: Ramy Jallad, Group CEO Published by: Trade Finance Global Centuries before trade agreements were ever drafted on paper, the waters off Ras Al Khaimah were already busy with vessels transiting global commerce. During the Middle Ages, the historic port of Julfar – located in modern-day Ras Al Khaimah – served as a vital hub for the pearl trade, connecting Arabian merchants with markets as far afield as Europe and China. When British ships first began navigating these waters in the 17th century, they were participating in an ancient tradition of exchange, laying the groundwork for a relationship that has been centuries in the making. That long history is worth recalling now, because the UK and the Gulf Cooperation Council’s (GCC) free trade agreement (FTA) carries the potential to open one of its most significant chapters yet. As the first deal of its kind between the GCC and a G7 nation, the FTA formalises a deepening of ties that businesses on both sides have long pursued. And while its provisions span the GCC as a whole, the clearest opportunity lies between the UK and the UAE. Already Britain’s largest trading partner in the region, the UAE is the market where this agreement is likely to translate into tangible activity the fastest. This is likely to take place most notably in Ras Al Khaimah, which already hosts close to 4,000 British companies in the dedicated Ras Al Khaimah Economic Free Zone (RAKEZ). What the deal makes possible The headline figures are considerable. Annual bilateral trade between the UK and the GCC stands at around £53 billion, with the agreement projected to grow that figure by nearly 20%. Tariffs worth an estimated £580 million per year are set to be removed on UK exports once the deal is fully implemented. The UAE accounts for the largest share of that trade, which is why there is so much of the conversation among British exporters on the new opportunities this deal presents. For the first time, UK companies based in the GCC will be allowed to store and process data outside of Gulf countries, removing a barrier that has long deterred tech firms and fintechs from committing fully. The agreement also secures some of the most ambitious business-mobility commitments the GCC has ever granted a trading partner – giving lawyers, engineers, consultants, and other professionals far greater certainty when working across borders. Together, these measures deliver what lower tariffs alone cannot: the confidence to invest and plan for the long term. For a relationship with so much history, that kind of confidence is what turns intent into investment. What stronger ties mean for growth The value of that confidence is something witnessed at RAKEZ every day, as one of the UK’s most significant destinations for outbound investment into the region. 4,000 businesses from the UK have already expanded in RAKEZ, reflecting what stronger trade ties will mean in practice. For example, Spatial Composite Solutions, a British-owned manufacturer of aircraft cabin crew training simulators, has called RAKEZ home since 2009 and now serves clients from Asia to the Americas. Hampshire-born Ahmad Tea produces 22 million tea bags daily from its regional facility in RAKEZ, supplying more than 80 countries. Circular Computing, a UK-based used laptop remanufacturer, has expanded its RAKEZ facility’s operation to 50,000 units monthly. Businesses such as Polar Manufacturing and Green Rock Manufacturing Group further showcase the breadth of British industrial ingenuity that has found Ras Al Khaimah a cost-effective base for international reach. These companies share a straightforward lesson: a welcoming environment delivers most when matched by tangible commercial advantage. Operating costs at RAKEZ run up to 40% lower than comparable regional markets, with setup packages available from AED 6,000 (£1,219) and incorporation complete in days. Many of RAKEZ’s 40,000-plus businesses are small and medium-sized enterprises (SMEs), precisely the agile, high-growth enterprises that the agreement sets out to champion. By lowering the cost of entry and removing everyday friction, growth tends to follow, and the agreement extends that logic across an entire trading relationship. This approach aligns closely with the UAE’s national ambition to diversify its economy and become a global hub for trade and enterprise. The work that keeps trade flowing While a trade agreement can lower tariffs and open markets, goods and services must still move reliably and affordably, without getting stuck at a border. If the disruption of recent years has taught exporters anything, it is that a trading relationship is only ever as strong as the supply chains and logistics that underpin it. Signing a deal kickstarts that effort, and the lasting value will come from continuing to strengthen those supply chains, improving connectivity, and making cross-border trade simpler and more efficient with each passing year. This is precisely where Ras Al Khaimah has chosen to invest. The Emirate is less than an hour’s drive from Dubai, has its own international airport, four major ports (including Saqr Port, the largest bulk-handling port in the region), and connectivity is growing through the national Etihad Rail network. Businesses that establish here gain proximity not only to the wider region but to the world. The Emirate works as somewhere companies establish to build resilient, far-reaching supply chains, while using it as a launch point into several markets at once. Under this new agreement, that geographic advantage is reinforced by a formal commercial framework, and the sectors best positioned to benefit play directly to these strengths. Advanced manufacturing and agri-food businesses stand to gain from tariff reductions – a meaningful advantage given that the GCC imports over 80% of its food and British quality carries genuine brand equity. Financial and professional services, which account for around 11% of the UK’s economic output and half of its exports to the GCC, will benefit from guaranteed market access and the new data-flow commitments. During a recent roadshow in London, the same point came up repeatedly with the British business leaders. The question was rarely whether to pursue growth in this part of the world, but how to do so with the right infrastructure, legal framework, and support in place. The relationship between the UK and the UAE has flourished for centuries because it has always been built on mutual respect and shared commercial ambition. The vessels that once sailed in and out of Julfar sought what today’s exporters still seek: reliable routes, trusted partners, and open markets. The new agreement gives that ambition a modern framework, yet realising its full potential will depend on the essential, often unglamorous work of keeping trade moving. As we enter this new chapter, the infrastructure is in place and the British business community in RAKEZ is already thriving. For forward-thinking British businesses looking to secure their global supply chains and capture new markets, there has rarely been a more opportune moment for collaboration.
Author: Ramy Jallad, Group CEO Published by: Trade Finance Global
Centuries before trade agreements were ever drafted on paper, the waters off Ras Al Khaimah were already busy with vessels transiting global commerce.
During the Middle Ages, the historic port of Julfar – located in modern-day Ras Al Khaimah – served as a vital hub for the pearl trade, connecting Arabian merchants with markets as far afield as Europe and China. When British ships first began navigating these waters in the 17th century, they were participating in an ancient tradition of exchange, laying the groundwork for a relationship that has been centuries in the making.
That long history is worth recalling now, because the UK and the Gulf Cooperation Council’s (GCC) free trade agreement (FTA) carries the potential to open one of its most significant chapters yet. As the first deal of its kind between the GCC and a G7 nation, the FTA formalises a deepening of ties that businesses on both sides have long pursued. And while its provisions span the GCC as a whole, the clearest opportunity lies between the UK and the UAE.
Already Britain’s largest trading partner in the region, the UAE is the market where this agreement is likely to translate into tangible activity the fastest. This is likely to take place most notably in Ras Al Khaimah, which already hosts close to 4,000 British companies in the dedicated Ras Al Khaimah Economic Free Zone (RAKEZ).
The headline figures are considerable. Annual bilateral trade between the UK and the GCC stands at around £53 billion, with the agreement projected to grow that figure by nearly 20%. Tariffs worth an estimated £580 million per year are set to be removed on UK exports once the deal is fully implemented. The UAE accounts for the largest share of that trade, which is why there is so much of the conversation among British exporters on the new opportunities this deal presents.
For the first time, UK companies based in the GCC will be allowed to store and process data outside of Gulf countries, removing a barrier that has long deterred tech firms and fintechs from committing fully. The agreement also secures some of the most ambitious business-mobility commitments the GCC has ever granted a trading partner – giving lawyers, engineers, consultants, and other professionals far greater certainty when working across borders.
Together, these measures deliver what lower tariffs alone cannot: the confidence to invest and plan for the long term. For a relationship with so much history, that kind of confidence is what turns intent into investment.
The value of that confidence is something witnessed at RAKEZ every day, as one of the UK’s most significant destinations for outbound investment into the region. 4,000 businesses from the UK have already expanded in RAKEZ, reflecting what stronger trade ties will mean in practice.
For example, Spatial Composite Solutions, a British-owned manufacturer of aircraft cabin crew training simulators, has called RAKEZ home since 2009 and now serves clients from Asia to the Americas. Hampshire-born Ahmad Tea produces 22 million tea bags daily from its regional facility in RAKEZ, supplying more than 80 countries. Circular Computing, a UK-based used laptop remanufacturer, has expanded its RAKEZ facility’s operation to 50,000 units monthly.
Businesses such as Polar Manufacturing and Green Rock Manufacturing Group further showcase the breadth of British industrial ingenuity that has found Ras Al Khaimah a cost-effective base for international reach.
These companies share a straightforward lesson: a welcoming environment delivers most when matched by tangible commercial advantage. Operating costs at RAKEZ run up to 40% lower than comparable regional markets, with setup packages available from AED 6,000 (£1,219) and incorporation complete in days. Many of RAKEZ’s 40,000-plus businesses are small and medium-sized enterprises (SMEs), precisely the agile, high-growth enterprises that the agreement sets out to champion.
By lowering the cost of entry and removing everyday friction, growth tends to follow, and the agreement extends that logic across an entire trading relationship. This approach aligns closely with the UAE’s national ambition to diversify its economy and become a global hub for trade and enterprise.
While a trade agreement can lower tariffs and open markets, goods and services must still move reliably and affordably, without getting stuck at a border. If the disruption of recent years has taught exporters anything, it is that a trading relationship is only ever as strong as the supply chains and logistics that underpin it. Signing a deal kickstarts that effort, and the lasting value will come from continuing to strengthen those supply chains, improving connectivity, and making cross-border trade simpler and more efficient with each passing year.
This is precisely where Ras Al Khaimah has chosen to invest. The Emirate is less than an hour’s drive from Dubai, has its own international airport, four major ports (including Saqr Port, the largest bulk-handling port in the region), and connectivity is growing through the national Etihad Rail network.
Businesses that establish here gain proximity not only to the wider region but to the world. The Emirate works as somewhere companies establish to build resilient, far-reaching supply chains, while using it as a launch point into several markets at once.
Under this new agreement, that geographic advantage is reinforced by a formal commercial framework, and the sectors best positioned to benefit play directly to these strengths. Advanced manufacturing and agri-food businesses stand to gain from tariff reductions – a meaningful advantage given that the GCC imports over 80% of its food and British quality carries genuine brand equity.
Financial and professional services, which account for around 11% of the UK’s economic output and half of its exports to the GCC, will benefit from guaranteed market access and the new data-flow commitments. During a recent roadshow in London, the same point came up repeatedly with the British business leaders. The question was rarely whether to pursue growth in this part of the world, but how to do so with the right infrastructure, legal framework, and support in place.
The relationship between the UK and the UAE has flourished for centuries because it has always been built on mutual respect and shared commercial ambition. The vessels that once sailed in and out of Julfar sought what today’s exporters still seek: reliable routes, trusted partners, and open markets. The new agreement gives that ambition a modern framework, yet realising its full potential will depend on the essential, often unglamorous work of keeping trade moving.
As we enter this new chapter, the infrastructure is in place and the British business community in RAKEZ is already thriving. For forward-thinking British businesses looking to secure their global supply chains and capture new markets, there has rarely been a more opportune moment for collaboration.
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