UK Export Finance (UKEF) and Saudi Arabia’s Public Investment Fund (PIF) have signed a memorandum of understanding (MoU) that aims to expand trade and investment opportunities between the two countries.
The MoU includes up to £5.1bn in export credit support from UKEF for projects in Saudi Arabia, which will unlock supply contracts for British suppliers, the UK government said in a statement.
Under the agreement, UKEF will partner PIF – Saudi Arabia’s sovereign wealth fund – and its portfolio companies to access a pipeline of existing and future projects, making it easier for companies in PIF’s ecosystem to procure goods and services from UK contractors, the government added.
“Saudi Arabia’s ambitious Vision 2030 programme presents significant economic opportunities for British businesses,” UKEF chief executive Tim Reid said.
“Through this landmark signing, we are not just opening doors – we are creating a gateway that will provide valuable new supply contracts, driving substantial economic growth across both our nations.”
The MoU comes amid UK government efforts to deepen trade and investment ties in the GCC region in a bid to stimulate the economy and reverse the damage caused by Brexit.
It also builds on September’s UK-Saudi Great Futures Summit in London, where more than £4.1bn worth of deals were signed, and the annual Future Investment Initiative conference in Riyadh, held from 27 to 30 October.
“The global outlook is challenging – but turning inwards is the wrong response and what I’m focused on is pursuing trade and investment with trusted partners, just like we have already done with the US, India and the EU,” said Chancellor Rachel Reeves, who led a delegation of business leaders to FII.
The UK is also pursuing a trade deal with the six-member Gulf Cooperation Council – comprising Saudi Arabia, the UAE, Oman, Qatar, Bahrain and Kuwait – which would increase trade by 16% and add £1.6bn to UK gross domestic product annually.