RIYADH: North East England is poised to receive a significant economic boost with investments worth £3 billion ($3.7 billion) from Saudi Arabia, as highlighted by the British deputy prime minister. 

During the opening of the two-day GREAT Futures Initiative Conference in Riyadh on Tuesday, Oliver Dowden announced new figures, stating that this investment is expected to sustain approximately 2,000 jobs in the region. 

Following virtual remarks from UK Prime Minister Rishi Sunak and Saudi Crown Prince Mohammed bin Salman, Dowden said: “Our collaboration has enabled an exponential increase in our mutual prosperity and demonstrated that our modern, forward-looking partnership can meet the challenges of the 21st Century.” 

The event serves as the launchpad for a year-long campaign designed to highlight British expertise and capabilities in sectors that support Saudi Arabia’s Vision 2030.  

Furthermore, the conference features a UK business delegation exceeding 450 members, representing the largest turnout in over 10 years.

A key highlight of the event is the fireside chat between Dowden and Saudi Commerce Minister Majid Al-Qasabi. 

Dowden expressed optimism about the future of the UK-Saudi relations: “GREAT FUTURES will be an important moment for British business. We’re opening up our markets to one another so that investment, exports, tourism, and collaboration flow in both directions. Britain doesn’t just endorse Vision 2030, we want to be a part of it,” he stated in an official release. 

Among the announcements, Dowden revealed that Saudi companies have raised £56.1 billion in London’s capital markets since 2022, with £10.3 billion classified as green and sustainable finance.  

The prime minister also announced the first overseas expansion of the UK’s Office for Investment in the Gulf, a joint venture between 10 Downing Street and the Department for Business and Trade.  

This expansion is aimed at connecting public and private expertise to facilitate capital flows and address potential barriers, enhancing the investment landscape between the two nations. 

Today, the UK will also sign an updated memorandum of understanding with the Kingdom, renewing a joint commitment to further investment. 

Strengthening cultural and educational ties, the University of Strathclyde will become the first English university to establish a physical presence in Saudi Arabia at the Princess Nourah bint Abdulrahman University.  

Considered the largest institute for women globally, this new partnership will enable female students to study a broader range of subjects, including business and STEM. 

Additionally, the UK and Saudi Arabia have agreed to establish an Education Task Force, chaired by Sir Steve Smith and Saudi Education Minister Yousef Al-Benyan, to promote further cooperation in higher education.  

This initiative has already resulted in 40 partnerships being signed between the two nations. 

As part of the ongoing dialogue and cooperation, Dowden is scheduled to visit the culturally significant city of AlUla to discuss sharing cultural expertise and collaborations. 

Ministers accompanying the prime minister at the conference include the British secretary of state for business and trade, the secretary of state for culture, media and sport, the minister for investment, and the parliamentary undersecretary of state for health. 

This visit coincides with the commencement of the 7th round of negotiations between the UK and the Gulf Cooperation Council on a modern and ambitious trade deal.  

Building on a robust £59 billion trading relationship, this exchange could potentially add £1.6 billion to the UK economy, facilitating easier trade with all six Gulf countries, including Saudi Arabia, and enhancing mutual investment opportunities. 

Key partners include British Airways, which plays a pivotal role in promoting the UK as a leading destination for business, tourism, and investment.  

An additional lead partner, HSBC UK Bank Plc, brings its global financial expertise to support regional firms in achieving their growth ambitions.  

Further partners include North Highland, a change and transformation consultancy, TAG, a content production agency and Innovo, an urban development firm. 

KARACHI: Key ministers of the government, including Finance Minister Muhammad Aurangzeb this week vowed to ensure efficiency and sustainable growth in Pakistan’s public entities as Islamabad moves to privatize state-owned enterprises (SOEs) that have accumulated losses worth billions over the years. 

Pakistan agreed to overhaul its public entities under a $3 billion financial bailout agreement it signed with the International Monetary Fund (IMF) last year, a deal that helped it avert a sovereign debt default in 2023. The IMF has said Pakistan’s SOEs whose losses are burning a hole in government finances would need stronger governance. Pakistan is currently negotiating with the international lender for a larger, longer program for which it must implement an ambitious reforms agenda, including the privatization of debt-ridden SOEs.

Among the main entities Pakistan is pushing to privatize is its national flag carrier, Pakistan International Airlines (PIA). The government is putting on the block a stake ranging from 51 percent to 100 percent.

Aurangzeb chaired a meeting of the Cabinet Committee on State-Owned Enterprises on Monday which was attended by ministers of maritime affairs, economic affairs, housing and works, the governor of Pakistan’s central bank and other officials. The meeting was held to evaluate the performance of the country’s public entities and review the progress of the government’s privatization agenda. 

“The meeting concluded with a commitment to fostering transparency, efficiency, and sustainable growth within the State-Owned Enterprises, reflecting the government’s dedication to ensuring the optimal utilization of public resources,” the finance ministry said. 

Aurangzeb directed concerned ministries and divisions to submit proposals for the categorization of their respective public entities by May 20. The step is aimed at reviewing the rationale for retaining any commercial functions within the public sector, the ministry said. 

“The objective is to retain only the essential functions within the public sector & to assign the remaining functions to the private sector,” it said. “At the same time the entities which remain in public sector have to be more competitive, accountable, and responsive to the needs of citizens.”

The finance minister noted that there were gaps in the governance and financial management of some companies which needed to be addressed. He directed the vacancies on the Board of Directors (BoD) of some companies to be filled and for others to have their accounts audited. 

“The Chairman emphasized that continued losses & fiscal haemorrhage had to be stopped as a national priority,” the finance ministry said. “Therefore SOEs restructuring & privatization agenda needed to be expedited in order to improve the efficiency of these entities.”
 
Prime Minister Shehbaz Sharif has assured the business community that the privatization process would be a transparent one and has warned the country’s bureaucracy that the government would not tolerate any delays in it.