Chancellor unlocks £6.4 billion of commerce and funding offers on progress boosting Gulf go to

British enterprise and jobs are set to profit from a £6.4 billion increase after Chancellor Rachel Reeves helped safe a serious two-way commerce and funding bundle throughout a landmark go to to Saudi Arabia.

The growth-driving offers got here because the Chancellor led the most important UK delegation ever to the Future Investment Initiative (FII), because the UK authorities steps up efforts to deepen ties with the area, safe a commerce settlement and ramp up Gulf funding.

The bundle contains as much as £5 billion in financing assist from UK Export Finance for initiatives in Saudi Arabia which can unlock provide contracts for British suppliers, and a brand new Barclays regional headquarters in Riyadh. Deepening ties between the 2 international locations on this approach will open up extra alternatives for companies, create new jobs and kickstart financial progress that may increase residing requirements for British folks.

Chancellor of the Exchequer, Rachel Reeves stated:

It’s a privilege to be right here within the Gulf main the most important ever senior UK delegation to the Future Investment Initiative, unlocking alternatives and batting for British enterprise.

The UK and the Gulf share a protracted historical past of working collectively, however right now we’re constructing one thing even stronger: a contemporary financial alliance prepared for the subsequent decade.

The £6.4 billion bundle of latest two-way commerce, enterprise, and funding commitments will turbocharge enterprise alternative and create hundreds of jobs at dwelling – key substances for kickstarting financial progress and constructing an economic system that works for, and rewards, working folks.

UKEF CEO Tim Reid stated:

Saudi Arabia’s formidable Vision 2030 programme presents vital financial alternatives for British companies.

Through this landmark signing, we’re not simply opening doorways – we’re making a gateway that may unlock billions of kilos in new provide contracts, driving substantial financial progress throughout each our nations.

This partnership demonstrates the UK’s dedication to supporting British exporters as they compete and win in one of many world’s most dynamic markets, whereas serving to to ship the infrastructure and innovation that may form Saudi Arabia’s future.

Other main offers embrace a £37 million funding from Saudi cybersecurity agency Cipher to launch its European workplace London, and a £75 million funding from Saudi traders and bankers into British digital financial institution Vemi.

This week marked the primary go to by a Chancellor to Saudi Arabia since 2018 and was the most important UK delegation ever taken to the FII centered on deepening financial partnerships to assist progress, commerce and jobs between the UK and Gulf.

During the profitable mission, the Chancellor and His Excellency Khalid bin Abdulaziz Al-Falih, the Saudi Minister of Investment, co-chaired a progress and funding roundtable with UK and Saudi companies leaders the place she showcased UK funding alternatives, from the landmark growth of Heathrow Airport to the event of the OxCam arc. She advised the influential delegation that there was an abundance of progress alternatives to be seized in each international locations and that she was dedicated to strengthening the UK partnership with all Gulf international locations.

She added:

The world outlook is difficult – however turning inwards is the improper response and what I’m centered on is pursuing commerce and funding with trusted companions, identical to we have now already carried out with the US, India and EU.

Attending the FII in addition to the Fortune 500 Global Forum, the Chancellor championed the UK as a secure funding vacation spot amid world uncertainty, pointing to the federal government’s ironclad dedication to sturdy fiscal guidelines, fashionable Industrial Strategy, and backing of key initiatives to unleash progress together with the landmark Heathrow growth – which the Saudi Public Investment Fund (PIF) acquired a 15% stake in final yr.

The Chancellor additionally met ministerial counterparts from Saudi Arabia, Qatar to speed up progress on a commerce deal between the UK and the Gulf Cooperation Council.

She made clear that securing such commerce offers is vital for reversing the harm brought on by decline of the previous – together with Brexit, austerity and the mini-budget – and is essential to delivering extra money within the pockets of working folks by progress alternatives for enterprise.

A commerce take care of the Gulf is anticipated to extend commerce between each nations by 16%, add £1.6 billion to UK GDP each yr, and contribute a further £600 million to UK staff’ annual wages in the long run.

This week’s success builds on final month’s UK-Saudi Great Futures Summit in London which celebrated over £4.1 billion in offers, creating greater than 4,100 UK jobs and bringing the full worth of two-way commerce and funding to over £10 billion in below 18 months.

Georges Elhedery, Group CEO, HSBC stated:

The GCC is among the world’s quickest rising areas and one the place HSBC’s heritage runs deep. That’s why I’m delighted to hitch the UK Chancellor’s delegation to the Gulf, given the UK can also be a house marketplace for HSBC. Trade and funding flows have lengthy been a two-way avenue and there are vital alternatives forward. We’re dedicated to harnessing the ability of HSBC’s world community to advance shared financial pursuits and assist companies join, make investments, and develop.

More info

• The complete business bundle linked to this go to includes bulletins price over £6.4 billion in export and business offers in addition to two-way investments. This contains:
  • UK Export Finance (UKEF) and the Public Investment Fund (PIF) signing a refreshed memorandum of understanding (MoU) to strengthen monetary cooperation and develop commerce and funding alternatives between the United Kingdom and Saudi Arabia. Under the MoU, UKEF will present export credit score assist totalling as much as £5.1 billion to PIF and its portfolio firms, which can be utilized to assist purchases from UK-based companies.
  • Meanwhile Saudi cybersecurity agency Cipher can be launching its European workplace in London, representing £37 million of funding over the subsequent ten years and deepening collaboration on digital safety and resilience.
  • A consortium of Saudi traders and banking executives saying a £75 million funding in Vemi, a next-generation moral digital financial institution constructed on cutting-edge synthetic intelligence and superior digital expertise, signalling renewed investor confidence within the UK’s monetary innovation ecosystem. o Aberdeen Investcorp, a joint UK–Bahraini car, can be advancing infrastructure investments throughout the Gulf. In Saudi Arabia, the agency has dedicated to the Aramco Jafurah Gas Infrastructure challenge and purchased a 40% stake within the Fadhili Housing Complex below a long-term concession with Aramco. Additional investments embrace a 33% share within the £1.65 billion ADNOC Mirfa Water System within the UAE and majority participation in a £415 million port growth challenge in Oman’s Port of Duqm.
  • British local weather‑tech agency Levidian can be partnering with Kanoo Energy on regional decarbonisation initiatives. Levidian’s LOOP expertise captures carbon from methane to provide clear hydrogen and graphene, with a pilot deliberate with Aramco. This represents as much as £7.5 million in business alternatives over the subsequent 5 years.
  • UK Export Finance‑enabled Six Flags Qiddiya City saying over £90 million of export alternatives for UK inventive, architectural, safety and building companies. This is UKEF’s largest Murabaha financing so far and its first within the area.
• The bundle additionally contains the next bulletins creating additional alternatives, jobs and bolstering collaboration between the UK and the Gulf:
  • Major UK monetary establishments strengthening their presence within the Kingdom. Barclays has established a Regional Headquarters in Riyadh that may assist capital flows and advisory providers throughout the area.
  • HSBC Saudi Arabia relocating its headquarters to the King Abdullah Financial District in Riyadh. The new workplace, anticipated to be prepared by the tip of this monetary yr, locations the financial institution on the coronary heart of Saudi Arabia’s Vision 2030 monetary hub.
  • Riyadh Air has opened a brand new route from Riyadh to London on 26 October, strengthening enterprise and tourism hyperlinks in addition to supporting the UK’s world‑class aviation and airport providers sectors.
  • The University of Strathclyde has develop into the primary European college to ascertain a bodily presence in Saudi Arabia on the Princess Nourah bint Abdulrahman University. This will present its feminine pupil physique with the chance to pursue research in a broader curriculum, notably in high-demand enterprise fields.
  • UK information, analytics, and AI agency Quantexa launching Quantexa AI as a part of their Decision Intelligence Platform within the area to assist enterprises and authorities businesses use Agentic AI to remodel decision-making.
  • The UK and Saudi counterparts taking ahead the third and concluding assembly of the UK–Saudi Sustainable Infrastructure Assembly in the course of the go to, to encourage funding into excessive‑impression, bankable initiatives and set out sensible subsequent steps for traders and suppliers.
  • The launch of a Saudi–British Women’s Network. The community will strengthen ties between British and Saudi girls by thought‑management, mentorship and collaboration.