The United Kingdom (U.K.) is genuinely committed to enhancing its trade ties with Saudi Arabia, as expressed by Investment Minister Poppy Gustafsson on Tuesday during the Capital Markets Forum held in Riyadh. Gustafsson emphasized that Britain is increasing direct flights to Saudi Arabia, facilitating easier access for e-visas, Reuters reported.
Bilateral trade between Saudi Arabia and the U.K. soared to SAR78.9 billion ($21 billion) in 2023, with a comprehensive free trade agreement between the U.K. and the Gulf Cooperation Council on the horizon, poised to further boost trade. By 2022, Saudi investments in the U.K. reached SAR40 billion ($10.7 billion), while British foreign direct investment in Saudi Arabia hit SAR18 billion ($4.8 billion) by 2023. Over 60 U.K. companies have established regional headquarters in the Kingdom, and approximately 30,000 British employees are part of the Saudi workforce, SPA reported.
Economic relations and investment plans
In December 2024, Saudi Arabia and the U.K. laid out plans to strengthen economic relations and investment during a business roundtable in Riyadh. This meeting brought together U.K. Prime Minister Keir Starmer, Saudi Minister of Investment Khalid Al-Falih, Saudi Minister of Commerce Majid Al-Kassabi, Saudi Ambassador to the U.K. Prince Khalid bin Bandar bin Sultan, and leading executives from both nations. The discussions revolved around opportunities in vital sectors such as financial services, clean energy, healthcare, innovation, education, and mega-projects, aligning with the Saudi Vision 2030 objectives of diversifying the economy and increasing investment sectors.
Read more: Saudi Arabia’s Diriyah seeks U.K. partnerships in business, development projects
Key investment sectors highlighted
The meeting underscored crucial investment sectors, including sustainable finance and cross-border finance, while stressing the importance of improving access to capital markets. Since 2024, Saudi bond issuers have successfully raised over SAR180 billion in London, with more than half allocated for green, social, and sustainable finance initiatives.
Energy sector and net zero goals
The two nations explored opportunities in the energy sector, particularly in expediting efforts to achieve net-zero carbon emissions. A notable project includes Alfanar’s Lighthouse Green Fuels Project in the U.K., which is set to become Europe’s largest sustainable aviation fuel initiative.
Healthcare initiatives and academic exchange
In the healthcare realm, discussions focused on conducting further joint studies and investments, with the potential for British firms to participate in Saudi Arabia’s initiative to establish 4,000 new primary healthcare clinics. Academic exchange also emerged as a focal point, with seven British schools currently operating in Riyadh and plans to expand to ten. Concurrently, 14,000 Saudi students are pursuing their studies in the U.K.
Technological collaboration and mega-projects
Saudi Arabia and the U.K. are enhancing their collaboration in technology and innovation through initiatives like the Saudi U.K. Tech Hub, established in 2022. The Kingdom’s mega-projects present global investors with opportunities to engage in cutting-edge innovations, exemplified by the NEOM project, which opened its first international office in the U.K. last year.
