Saudi Arabia and the United Kingdom recently emphasized the importance of strengthening their economic partnership and reaffirmed their commitment to increasing bilateral trade to £30 billion ($37.89 billion) by 2030. This commitment came in the joint statement the two countries issued at the conclusion of UK Prime Minister Keir Starmer‘s visit to Saudi Arabia.
Prime Minister Starmer and His Royal Highness Prince Mohammed bin Salman bin Abdulaziz Al Saud, Crown Prince and Prime Minister of Saudi Arabia, also reviewed the extensive progress made in modernizing and diversifying the bilateral relationship. In addition, they agreed on an ambitious program of cooperation to enhance mutual prosperity, strengthen shared security and tackle global challenges.
Stronger trade, investment ties
The two sides stressed the importance of the role the Saudi-UK Strategic Partnership Council plays in enhancing joint cooperation between the two countries. They also expressed their aspiration to hold the next session of the council when they meet in the UK.
The UK and Saudi Arabia also acknowledged the vital importance of strengthening the economic partnership between the two Kingdoms and reaffirmed their commitment to grow total trade to £30 billion by 2030 and increase investment into both Kingdoms.
Through Saudi Arabia’s Vision 2030 and the United Kingdom’s Industrial Strategy, both countries are investing in industries of tomorrow that will drive future global competitiveness, deliver jobs and prosperity for citizens, and deliver sustainable growth.
The two sides also welcomed the significant progress on the GCC-UK Free Trade Agreement. Officials will continue intense negotiations to finalize the agreement as soon as possible.
Saudi Arabia’s investments in UK grow
The two leaders commended the growth of the two-way investment relationship, noting the significant investments Saudi Arabia made in the UK this year. This includes PIF’s investments in Selfridges and Heathrow Airport, as well as the fund’s additional investment in Newcastle United Football Club, further building on the growing ties between the North East of England and Saudi Arabia.
The UK also continues to be one of the largest foreign investors in Saudi Arabia. Building on the success of its landmark $700 million Shariah-compliant financing facility in Qiddiya earlier this year, UK Export Finance announced plans to increase its market exposure to $6 billion.
Greater cooperation in energy
Both Saudi Arabia and the UK commended their existing cooperation in the energy sector, stressing the importance of enhancing cooperation in electricity, renewable energy and clean hydrogen. This includes the development of policies, regulations and standards for clean hydrogen, clean hydrogen business models, as well as capacity building as a key enabler for successful multilateral cooperation in the clean hydrogen sector.
Both sides also welcomed the launch of five special economic zones in Saudi Arabia, targeting strategic industries and sectors and offering British companies the opportunity to benefit from the advantages and incentives provided by the zones at all levels of supply chains and across various sectors.
Read: Saudi Arabia’s PIF acquires 15 percent stake in Heathrow Airport
Cooperation in key sectors
In their statement, Saudi Arabia and the UK affirmed their commitment to enhancing cooperation in clean technology, energy innovation, sustainability and health, contributing to sustainable economic growth and the development of commercial partnerships between the two countries. The two sides agreed to continue strengthening their cooperation in critical minerals and mining to support responsible, diversified and resilient supply chains.
The UK reaffirmed its strong support for Saudi Arabia’s Vision 2030 and commitment to the opportunities it presents for the bilateral partnership. The two sides welcomed the rapidly growing number of visitors between the two Kingdoms and looked forward to increasing this number further following the recent announcement of new air links and easing of visa requirements on both sides.
