The first Economic and Social Pillar meeting of the UK-Saudi
Arabia Strategic Partnership Council was jointly hosted by the
Chancellor of the Exchequer, , and his counterpart, the
Saudi Minister of Commerce and Industry, Dr Majed Bin Abdullah Al
Qasabi, yesterday (7 July 2019).
Commercial opportunities that were agreed during the Strategic
Partnership Council include:
-
a £100 million contract with manufacturer De La Rue to help
tackle illicit trade by introducing a digital tax stamp
solution for soft drinks and tobacco products sold in the
Kingdom
-
a full banking licence for British bank Standard Chartered
-
a venture capital licence for Hambro Perks
The Chancellor of the Exchequer, , said:
Saudi Arabia continues to take positive steps towards a more
modern and diverse economy though its Vision 2030 plan.
The UK’s experience and expertise mean we are in a unique
position to offer Saudi Arabia support with their economic
diversification. More investment and more trade benefits both
of our economies.
The UK’s world-leading expertise in investment and finance is
also helping Saudi Arabia to reform its economy as part of its
Vision 2030 plan. In April this year, Aramco listed its first
international bond, worth $12 billion, on the London Stock
Exchange, and soon the UK will open a new Export Finance office
in Jeddah, to support UK companies in accessing opportunities in
Saudi Arabia.
While visiting Saudi Arabia the Chancellor met the Custodian of
the Two Holy Mosques King Salman bin Abdulaziz Al Saud, and held
meetings with business and political leaders, including the
Minister of Commerce and Investment of Saudi Arabia, Dr Majid bin
Abdullah Al Qasabi, the Minister of Finance, Mohammed bin
Abdullah Al-Jadaan, and Energy Minister, Khalid Al-Falih.
The Chancellor was also joined in Saudi Arabia by the Minister
for Investment, , and a delegation including
David Schwimmer, CEO of the London Stock Exchange Group.
Further Information
Agreements reached as part of the Strategic Partnership Council
include:
-
Standard Chartered Bank has been granted their banking
license in the Kingdom.
-
INEOS has signed an agreement to invest $2 billion with Saudi
Aramco and Total to build its first ever plants in the Middle
East.
-
Alderley has announced a $10 million contract award from
Saudi Aramco for the design and manufacturing in-kingdom of
Modular Skids. This is the second award of its kind awarded
from Saudi Aramco to Alderley in Saudi Arabia with a total of
more than £52 million in contract awards in Q1 2019.
-
Health Education England signed a Memorandum of Understanding
in April for the International Postgraduate Medical Training
Schemes (IPGMTS)
between Health Education England (HEE) & Scholarships
affairs, Ministry of Education.
-
Manchester, Birmingham, King’s College London and Queen’s
Belfast Universities have each signed separate agreements
with the Ministry of Education, Scholarship Department at the
International Higher Education Conference this year to enable
200 Saudi nurses to join one of these UK universities.
-
De La Rue announced a five-year contract with the General
Authority of Zakat and Tax (GAZT) to implement and
operate a digital tax stamp solution for all tobacco products
and soft drinks sold in the Kingdom.
-
The Royal Mint signed a contract with the Saudi Arabian
Monetary Authority (SAMA) to supply
both lower denominations and one Riyal coins together with
supporting the Central Bank on coinage forecast advice.
-
GlaxoSmithKline (GSK): GSK will be announcing the
signing of a Memorandum of Understanding (MoU) with the Saudi
Arabian General Investment Authority (SAGIA) in
the next couple of weeks. Through this MoU, GSK aims to further expand its
local manufacturing of its innovative pharmaceutical
portfolio and invest in local talents and capabilities
aligned with Saudi Arabia’s Vision 2030 goals.
-
London Stock Exchange Group (LSEG): Saudi Aramco
established a Global Medium-Term Notes Programme
(GMTN) and
issued their inaugural $12 billion debut bond with five
tranches – the largest corporate bond from Middle East,
Africa or Asia on London Stock Exchange. This follows a US
Dollar denominated sukuk ($2 billion, 4.30%, Jan-2029),
listed in September 2018.