Deals that drive growth and create good jobs is a priority for the UK-Gulf partnership, Rachel Reeves has said as she leads one of the largest business delegation to the region in years today.
The Chancellor begins a landmark two-day visit to Saudi Arabia, as the government steps up efforts to deepen ties with the region and galvanise Gulf investment. Reeves will be the first Chancellor to visit the Gulf in six years, arriving in Riyadh for the Future Investment Initiative (FII) - known as 'Davos in the Desert' - where she is expected to meet with senior Saudi royals, US administration figures and global CEOs.
Chancellor of the Exchequer Rachel Reeves said: "Our number one priority is growth, so I am taking Britain's offer – of stability, regulatory agility and world-class expertise - directly to one of the world's most important trade and investment hubs, making that case in our national interest.
"After our landmark deals with the US, EU and India, we’re determined to build on that momentum by going further and faster on partnerships that create good jobs, boost business and bring investment into communities across the UK - from the North East to the Oxford-Cambridge corridor.” The Chancellor is set to use keynote addresses at the Fortune Global Forum on Monday and FII on Tuesday to champion the UK as a stable investment destination at a time of global uncertainty.
She will point to the government's ironclad commitment to its robust fiscal rules, a modern Industrial Strategy focused on key sectors of the future like AI, life sciences and financial services, and backing of key projects to unleash growth like the National Wealth Fund and expansion at Heathrow – which the Saudi Public Investment Fund acquired a 15% stake in last year. A key priority for the visit will be accelerating progress on a trade deal with the GCC to boost growth and deliver higher wages across the UK, with the Chancellor also expected to meet with opposites from Qatar, Bahrain and Kuwait.
A deal with the Gulf is expected to increase trade between both nations by 16%, add £1.6 billion to UK GDP each and every year, and contribute an additional £600 million to UK workers’ annual wages in the long term. Reeves has been clear that securing such trade deals is important for reversing the damage caused by decline of the past - including Brexit, austerity and the mini-budget – and putting more money in the pockets of working people through growth opportunities for business.
She is expected to set out an ambition to work constructively towards this on both sides in her conversations with Gulf counterparts, while being honest over areas of divergence and cultural differences. Another priority will be two-way investment between the UK and Saudi Arabia, with a major package of announcements set to be made this week.
Minister for Investment Lord Stockwood said: “I’m proud to be travelling with an outstanding delegation of UK businesses, whose presence reflects the UK’s strength as a global hub for innovation and expertise.
“By deepening our economic ties with the region, alongside our ongoing trade talks with the GCC, we will open new doors for British exporters, attract high-value investment, and fuel growth in the UK.” The visit comes at a moment of celebration of growing UK-Saudi economic ties.
The Chancellor earlier this month launched new one-stop support service to make UK more attractive to global investors and create jobs and opportunities for working people across the UK. The GREAT FUTURES Summit in London last month marked over £4.1 billion in deals that are creating more than 4,100 UK jobs in the past 18 months, while over 1,600 UK companies now have a presence in Saudi Arabia.
As the Chancellor and the UK delegation travel in one direction, Riyadh Air’s first ever flight has landed in the other - with its Riyadh-London service having lifted off today. The route will broaden tourism and business links between the two countries.
The airline also ordered 25 Airbus A350 aircraft in June, featuring UK-manufactured wings and Rolls-Royce engines – demonstrating concrete benefits of the UK-Saudi partnership for British manufacturing. After the US, the UK is now projected by the International Monetary Fund to be the fastest growing G7 economy.
In Riyadh, the Chancellor will be looking to build on the success of last week’s Regional Investment Summit, where it was confirmed that nearly a thousand jobs are going to be created across the UK off the back of over £10 billion in investments being announced.
