Britain is actively pursuing stronger trade relations with Saudi Arabia, presenting significant opportunities for UK businesses. British Minister of Investment Poppy Gustafsson emphasized this on Tuesday during the Capital Markets Forum in Riyadh. She revealed that Britain is increasing direct flights to Saudi Arabia, facilitating easier access for e-visas, highlighting dual listings on the London and Riyadh stock exchanges as a key avenue for growth.
Long-Standing Economic Partnership
Gustafsson stressed the importance of educating UK firms about accessing Saudi Arabia’s thriving markets through dual listings. This aligns with both nations’ commitment to boost bilateral trade to £30 billion by 2030. “There’s a huge opportunity for UK businesses to sell their products effectively in Saudi Arabia,” she said.
She added, “I’m here to articulate not just why governments want these partnerships but also what benefits they bring to businesses.” A robust governance framework already exists, including a refreshed memorandum of understanding and the Strategic Oversight Board.
Fintech stands out as one sector witnessing strong engagement between the two countries. Gustafsson cited the success of a British fintech firm winning a Saudi competition. “British fintech companies are recognizing the potential here and establishing offices in Saudi Arabia,” she noted.
The minister explained her role involves supporting investment flows into and out of the UK. “We have a long historic relationship, and being here feels like we are among friends,” Gustafsson said. She emphasized building on this history to solve modern challenges and drive mutual growth.
Expanding Trade Agreements and Infrastructure
The UK and Gulf Cooperation Council are negotiating a free trade agreement, expected to increase trade by 18%. Gustafsson highlighted last year’s Great Futures Conference, where 450 British companies participated. “A lot of investments came off the back of that,” she remarked. Improved e-visa processes and new direct flights further enhance business exchanges.
Capital market collaboration remains a focal point, enabling British companies to pursue dual listings in Saudi Arabia and vice versa. Gustafsson noted, “The UK has a great heritage in financial institutions, while Saudi Arabia boasts a rapidly growing domestic market.” Sharing expertise creates opportunities for cross-listings or raising debt.
Islamic finance represents another critical area of cooperation. “London has traditionally been the main hub for raising debt financing,” Gustafsson stated. She added, “Saudi Arabia is working closely with the London Stock Exchange to deepen market liquidity and ensure knowledge-sharing.”
Vision 2030 Alignment and Sustainable Growth
Saudi Arabia and the UK share aligned priorities across clean energy, healthcare, and tech innovation. Over 60 UK companies operate regional headquarters in the Kingdom, employing 30,000 British workers. Saudi investments in the UK exceeded $10.7 billion by 2022. Joint ventures focus on sustainable finance, critical minerals, and AI-driven infrastructure.
Both nations are accelerating green initiatives, including Alfanar’s $1.4 billion Lighthouse Green Fuels Project. They collaborate on space-based solar power and carbon capture technologies. A 2024 tech agreement aims to advance breakthroughs in space tech, life sciences, and AI. NEOM’s first international office in the UK highlights growing tech synergies.
Academic exchanges thrive, with 14,000 Saudi students studying in the UK. Plans include doubling British schools in Saudi Arabia to 10 by 2025. Healthcare collaborations involve British firms joining Saudi Arabia’s 4,000-clinic initiative. Cultural partnerships focus on heritage preservation and digital archiving, bolstered by museum exchange programs.
As Saudi Arabia diversifies its economy, the UK remains a strategic ally. Prime Minister Keir Starmer’s recent state visit underscores shared ambitions for a sustainable future. Through innovation, mutual investment, and collaboration, both nations aim to unlock transformative opportunities.
