free trade negotiations go back to the year 1999, with the signing of a Bilateral Investment Treaty (BIT), which entered into force May 31, 2001.

It is the first such treaty signed between the United States and a member of the GCC, and is aimed at stimulating the flow of private investment between the two countries.

Both parties agreed that a stable framework for investment would maximize effective utilization of economic resources and improve living standards.

One year later, a Trade and Investment Framework Agreement (TIFA) was signed on June 18, 2002, representing the prelude for the FTA negotiations.

The TIFA was designed as a forum for an ongoing bilateral dialogue on economic reform and trade liberalization.