The negotiations were completed in Geneva after five rounds of talks. The agreement will improve economic cooperation, increase the trade of goods, and offer further investment opportunities between the two regions.

EFTA comprises the four European states of Iceland, Liechtenstein, Norway and Switzerland while GCC comprises Kuwait, Bahrain, Oman, Qatar, Saudi Arabia and the UAE.

GCC is also holding talks with the European Union (EU) this year as well as Iran and Korea, aimed at further trade-related treaties, the KUNA report said.

A GCC-Singapore Free Trade Agreement was finalised earlier this year.

India's Commerce & Industry Minister Kamal Nath, who was recently on an official visit to the UAE, had also said that India expected to make substantial progress this year in having an FTA with the GCC.