Orient Planet’s recent report suggests that Brexit may strengthen bilateral trade ties between the Gulf Cooperation Council (GCC) and the United Kingdom.
This will also lead to increased foreign investment in the region.
In the report, ‘UK’s EU Referendum: Why ‘Brexit’ Matters to the GCC’, it is indicated that the vote’s positive impact has become obvious in the strategies taken by the UAE and Bahrain this last year.
The report added that such bilateral trade agreements “would double the volume of trade exchange between the UAE and Britain by 2020, in addition to the agreement between the two nations to avoid double taxation during the current year.”
Britain is the fifth largest economy in the world and is attempting to compensate for actual losses in the domestic market resulting from the exit from the European Union.
To do that, the United Kingdom is seeking to strengthen its presence in non-European markets.
However, the report speculates that investment relations between the GCC and the United Kingdom rely on the strength of individual relationships with the UK.
The report also highlighted the many possibilities and prospects for even stronger ties between both parties.
That will ensure that bilateral trade ties would not be affected by the withdrawal process.
Especially in the wake of the recent non-productive efforts to reach a free trade agreement between the Gulf states and the United Kingdom.