JEDDAH: UK companies are set to gain from a $6.8 billion Saudi project pipeline under a partnership between the UK export credit agency and the Kingdom’s Public Investment Fund.
PIF and UK Export Finance, or UKEF, have signed a memorandum of understanding to strengthen financial cooperation and expand trade and investment opportunities between the UK and Saudi Arabia, according to a joint statement.
Through the MoU, the agency will partner with PIF and its portfolio companies to access a pipeline of existing and prospective projects that, “if backed with UKEF financing, will offer numerous supply contracts for UK-based suppliers,” the release said.
Saudi Arabia and the UK are deepening economic ties, with bilateral trade reaching $21.6 billion in 2023 and a joint target of $37.5 billion by 2030, supported by ongoing UK GCC Free Trade Agreement talks and the UK’s GREAT Futures campaign.
Investment flows remain robust, with Saudi Arabia investing more than $21 billion in the UK since 2017, including $3.5 billion in the northeast, while UK foreign direct investment in the Kingdom reached $13 billion by 2023.
The agreement will also make it more attractive for companies within PIF’s ecosystem to procure goods and services from UK contractors.
Fahad Al-Saif, PIF’s head of global capital finance and investment strategy and economic insights, said that the MoU reflects PIF’s strong partnerships with a wide group of leading global financial institutions.
“This collaboration will further enable our portfolio companies to access international capital and expertise and deliver transformative projects that contribute to sustainable economic growth in line with Vision 2030,” he added.
Tim Reid, UKEF CEO, commented that Saudi Arabia’s ambitious Vision 2030 program presents significant economic opportunities for British businesses.
“Through this landmark signing, we are not just opening doors – we are creating a gateway that will provide valuable new supply contracts, driving substantial economic growth across both our nations,” he said.
Reid said the partnership underscores the UK’s commitment to supporting British exporters in one of the world’s most dynamic markets, while contributing to the infrastructure and innovation shaping Saudi Arabia’s future.
The MoU also establishes a framework for closer cooperation between PIF and UKEF, allowing them to share business experience, identify mutually beneficial opportunities, and support portfolio companies in accessing global markets.
The Public Investment Fund is a leading global investor, driving Saudi Arabia’s economic transformation and shaping key sectors, with ratings of Aa3 from Moody’s and A+ from Fitch.
UK Export Finance, the country’s export credit agency, helps exporters manage risk and access financing, providing a record £14.5 billion last year to support over 667 companies and 70,000 jobs.
