U.K. Minister pledges to strengthen ties with Saudi Arabia as bilateral trade hits $21 billion

According to a Reuters report, British Investment Minister Lord Dominic Johnson stated at the Capital Markets Forum in Riyadh on Tuesday that the UK is firmly committed to strengthening trade relations with Saudi Arabia. Johnson emphasized that the UK is increasing direct flights to Saudi Arabia and simplifying the electronic visa application process to promote exchange and cooperation between the two countries.

Data shows that bilateral trade between Saudi Arabia and the UK surged to 78.9 billion Saudi Riyals (approximately $21 billion USD) in 2023. Furthermore, a comprehensive free trade agreement between the UK and the Gulf Cooperation Council is expected to further boost trade growth. As of 2022, Saudi investments in the UK reached 40 billion Saudi Riyals (approximately $10.7 billion USD), while British foreign direct investment in Saudi Arabia reached 18 billion Saudi Riyals (approximately $4.8 billion USD) as of 2023. The Saudi Press Agency reported that over 60 British companies have established regional headquarters in Saudi Arabia, employing approximately 30,000 British workers.

In December 2024, Saudi Arabia and the UK formulated plans to strengthen economic relations and investment at a business roundtable held in Riyadh. British Prime Minister Keir Starmer, Saudi Minister of Investment Khalid Al-Falih, Saudi Minister of Commerce Majid Al-Kassabi, Saudi Ambassador to the UK Prince Khalid bin Bandar bin Sultan, and leading business executives from both countries attended the meeting. Discussions focused on cooperation opportunities in key areas such as financial services, clean energy, healthcare, innovation, education, and mega-projects, aligning with the goals of economic diversification and increased investment outlined in Saudi Arabia's "Vision 2030."

The meeting highlighted key investment areas such as sustainable finance and cross-border finance, emphasizing the importance of improving capital market access. Since 2024, Saudi bond issuers have successfully raised over 180 billion Saudi Riyals in London, with more than half allocated to green, social, and sustainable finance projects. The two countries also explored cooperation opportunities in the energy sector, particularly in efforts to accelerate the achievement of net-zero carbon emissions. A notable project includes Alfanar's "Lighthouse Green Fuels Project" in the UK, which is expected to become Europe's largest sustainable aviation fuel project.

In the healthcare sector, both sides emphasized further joint research and investment, with British companies expected to participate in Saudi Arabia's plan to establish 4,000 new primary healthcare clinics. Academic exchange was also a focus, with seven British schools currently operating in Riyadh and plans to expand to ten. Concurrently, 14,000 Saudi students are studying in the UK. Furthermore, Saudi Arabia and the UK are strengthening cooperation in technology and innovation through initiatives such as the Saudi-UK Tech Hub, established in 2022. Saudi Arabia's mega-projects offer global investors opportunities to participate in cutting-edge innovation, such as the NEOM project, which opened its first international office in the UK last year.