Chancellor unlocks £6.4BN of trade and investment deals on growth boosting Gulf visit
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Chancellor helps unlock over £6.4 billion in two-way trade and
investment deals with Saudi Arabia during Gulf visit with landmark
business delegation. New package includes £5 billion of
export finance in major boost to British manufacturing and jobs,
plus multi-million-pound investment deals with Aberdeen
Investcorp, Barclays, HSBC and UK AI powerhouse Quantexa.
Builds on last month's UK-Saudi GREAT FUTURES Summit in...Request free trial
British business and jobs are set to benefit from a £6.4 billion boost after Chancellor Rachel Reeves helped secure a major two-way trade and investment package during a landmark visit to Saudi Arabia. The growth-driving deals came as the Chancellor led the largest UK delegation ever to the Future Investment Initiative (FII), as the UK government steps up efforts to deepen ties with the region, secure a trade agreement and ramp up Gulf investment. The package includes up to £5 billion in financing support from UK Export Finance for projects in Saudi Arabia which will unlock supply contracts for British suppliers, and a new Barclays regional headquarters in Riyadh. Deepening ties between the two countries in this way will open up more opportunities for businesses, create new jobs and kickstart economic growth that will boost living standards for British people. Chancellor of the Exchequer Rachel Reeves said: “It's a privilege to be here in the Gulf leading the largest UK business delegation in six years, unlocking opportunities and batting for British business. “The £6.3 billion package of new trade, procurement, and investment commitments unveiled today will turbocharge business opportunity and create thousands of jobs at home – key ingredients for kickstarting economic growth and building an economy that works for, and rewards, working people.” UKEF CEO Tim Reid said: “Saudi Arabia's ambitious Vision 2030 programme presents significant economic opportunities for British businesses. “Through this landmark signing, we are not just opening doors – we are creating a gateway that will unlock billions of pounds in new supply contracts, driving substantial economic growth across both our nations. “This partnership demonstrates the UK's commitment to supporting British exporters as they compete and win in one of the world's most dynamic markets, while helping to deliver the infrastructure and innovation that will shape Saudi Arabia's future.” Other major deals include a £37 million investment from Saudi cybersecurity firm Cipher to launch its European office London, and a £75 million investment from Saudi investors and bankers into British digital bank Vemi. This week marked the first visit by a Chancellor to Saudi Arabia since 2018 and was the largest UK delegation ever taken to the FII focused on deepening economic partnerships to support growth, trade and jobs between the UK and Gulf. During the successful mission, the Chancellor and His Excellency Khalid bin Abdulaziz Al-Falih, the Saudi Minister of Investment, co-chaired a growth and investment roundtable with UK and Saudi businesses leaders where she showcased UK investment opportunities, from the landmark expansion of Heathrow Airport to the development of the OxCam arc. She told the influential delegation that there was an abundance of growth opportunities to be seized in both countries and that she was committed to strengthening the UK partnership with all Gulf countries. She added: “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 EU.” Attending the FII as well as the Fortune 500 Global Forum, the Chancellor championed the UK as a stable investment destination amid global uncertainty, pointing to the government's ironclad commitment to robust fiscal rules, modern Industrial Strategy, and backing of key projects to unleash growth including the landmark Heathrow expansion – which the Saudi Public Investment Fund (PIF) acquired a 15% stake in last year. The Chancellor also met ministerial counterparts from Saudi Arabia, Qatar and Kuwait to accelerate progress on a trade deal between the UK and the Gulf Cooperation Council. She made clear that securing such trade deals is important for reversing the damage caused by decline of the past - including Brexit, austerity and the mini-budget – and is key to delivering more money in the pockets of working people through growth opportunities for business. A trade deal with the Gulf is expected to increase trade between both nations by 16%, add £1.6 billion to UK GDP each and every year, and contribute an additional £600 million to UK workers' annual wages in the long term. This week's success builds on last month's UK-Saudi GREAT FUTURES Summit in London which celebrated over £4.1 billion in deals, creating more than 4,100 UK jobs and bringing the total value of two-way trade and investment to over £10 billion in under 18 months. Georges Elhedery, Group CEO, HSBC said: “The GCC is one of the world's fastest growing regions and one where HSBC's heritage runs deep. That's why I'm delighted to join the join the UK Chancellor's delegation to the Gulf, given the UK is also a home market for HSBC. Trade and investment flows have long been a two-way street and there are significant opportunities ahead. We're committed to harnessing the power of HSBC's global network to advance shared economic interests and help businesses connect, invest, and grow.” Notes to editors:
The package also includes the following announcements creating further opportunities, jobs and bolstering collaboration between the UK and the Gulf:
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