Why British corporations are wheelwork up to woo the Gulf

Panicked within the face of Brexit uncertainty, United Kingdom of Great Britain and Northern Ireland businesses are trying to win new markets overseas, together with the GCC.

As United Kingdom of Great Britain and Northern Ireland politicians still lock horns over the Brexit crisis, the sustenance of national businesses may well be caught within the crossfire.

Britain’s unsure economic outlook has left its corporations scrambling outside the ecu Union for backup markets to plug the country’s trade hole ought to the United Kingdom leave the market on unfavorable terms.

Six weeks on from the first point in time for the UK’s departure from the EU and over 3 years since the historic EU vote, country government continues to be no clearer on whether or not the country can invoke a tough or soft Brexit by October thirty one, 2019 – or maybe leave the EU in any respect.

“Many of Britain’s businesses rely vitally on Europe to ply their trades.”
Because of the potential deficiency, British corporations are going to be making an attempt to urge into all kinds of new markets, together with the Gulf

According to United Kingdom of Great Britain and Northern Ireland government information, British exports to the EU in 2017 were £274bn ($353.8bn), accounting for forty four % of all United Kingdom of Great Britain and Northern Ireland exports, whereas United Kingdom of Great Britain and Northern Ireland imports from the EU were £341bn ($440.3bn) – accounting for fifty three % of all British imports.

“Because of the potential deficiency, British corporations are going to be making an attempt to urge into all kinds of new markets, together with the Gulf,” predicts Chris Doyle, director of the London-based Council for Arab-British Understanding (Caabu).

Ben Digby, international trade director at Confederation of British trade (CBI), confirms to Arabian Business that the Gulf is ‘an vital mercantilism partner’ for the United Kingdom.

“Across the Gulf region, there are opportunities in many sectors, with a selected concentrate on infrastructure, education and aid, areas wherever the United Kingdom may be a world leader in quality and excellence,” he says.

Hungry for business
A major business suffering from the uncertainty of Brexit is that the UK’s food and food trade. Accounting for nineteen % of the producing sector by turnover and using over four hundred,000 individuals within the United Kingdom of Great Britain and Northern Ireland across seven,000 businesses, it represents the biggest producing sector within the country.

A voice for country Food and Drink Federation (FDF) tells Arabian Business that United Kingdom of Great Britain and Northern Ireland suppliers are trying to extend their post-Brexit ties with the Gulf.

“In 2017, we tend to commissioned a Grant architect report gazing potential growth opportunities for the UK’s food and drink trade and sixteen % of respondents cited the UAE as a market they failed to presently export to however would love to within the future.

In 2018, the UAE was the sole Middle Eastern market among the highest twenty export destinations for United Kingdom of Great Britain and Northern Ireland food and drink, however it absolutely was the second largest export marketplace for United Kingdom of Great Britain and Northern Ireland breakfast cereals,” the voice says.

As a part of the United Kingdom government’s Industrial Strategy, the FDF is in discussions with key departments regarding securing Associate in Nursing bold food and drink sector deal that might embrace market-access help.

“The UAE is one in every of variety of markets known wherever this kind of support may facilitate United Kingdom of Great Britain and Northern Ireland food and drink exporters establish new opportunities,” the FDF says.

From the United Kingdom to the GCC
British corporations already export quite $20bn to the GCC annually, with a goal to lift exports to $30bn by 2020, per government figures.

The UAE is one in every of variety of markets known wherever this kind of support may facilitate United Kingdom of Great Britain and Northern Ireland food and drink exporters establish new opportunities.

The United Kingdom of Great Britain and Northern Ireland has created it clear that it desires to strengthen trade relations post-Brexit by frequently shuttling out UK International Trade Secretary Liam Fox to the UAE for talks this year.

A voice for the Department for International Trade (DIT) says: “The UAE may be a very important international mercantilism partner for the United Kingdom. The Prime Minister has been clear that she is searching for the strongest doable mercantilism relationships between the United Kingdom and therefore the Gulf when the United Kingdom leaves the EU.”

The dot conjointly highlighted that the United Kingdom-GCC Trade working party was proclaimed in December 2016 to look at however the 2 regions will best look for to deepen the trade relationship once the United Kingdom of Great Britain and Northern Ireland has left the EU. This includes exploring non-tariff measures, like regulative barriers to plug access, that may facilitate facilitate free-flowing trade.

Conversely, Gulf states may well be set to create a $1.1bn exploit the United Kingdom going away while not a deal, per a international organisation report free in Gregorian calendar month.