British PM visit’s agenda to Saudi Arabia includes free trade and green economy

The United Kingdom and Saudi Arabia announced today a broad economic cooperation aimed at creating thousands of British jobs by stimulating investments in various cities and regions of the United Kingdom. This announcement comes as part of the British Prime Minister Keir Starmer’s plan for change, during his visit to the Gulf, according to a statement issued by the British government.

The cooperation includes the launch of the first global project to produce graphene-enriched carbon fibers in Saudi Arabia, led by GIM – Graphene Innovation Manchester, headquartered in Manchester. This project is expected to create more than 1,000 jobs in the north of England and invest 250 million pounds in a research and innovation center in Manchester.

British Prime Minister Keir Starmer arrived in Riyadh today, Monday, seeking to strengthen economic and defense relations with Saudi Arabia.

Prime Minister Keir Starmer said: “Every region of the United Kingdom should feel the impact of our plan for change. I am here in the Gulf to build closer relations and strengthen relationships that support our mission to grow in every corner of the country.” The Prime Minister is expected to raise the file of the free trade agreement with the Gulf countries and the United Kingdom for discussion during the visit.

Regarding the free trade agreement, Neil Crompton, the British Ambassador to Saudi Arabia, told (Maaal) earlier this year: “The free trade agreement with the Gulf countries is very important to us, and the Gulf Cooperation Council countries are the UK’s fourth largest trading partner in the world. It is a lot of money, it is trade and investment in both directions, and there is a lot of British investment in all the Gulf countries, and there is a lot of Gulf investment in the UK, so we want to improve these relations and the free trade agreement between the two nations, and it will be of great commercial value to both sides, and I think this is a political commitment by both the GCC and the UK towards a very historic relationship.” It is worth noting that the Public Investment Fund has invested 21 billion pounds sterling (about 100 billion riyals) in the UK over the past four years, while according to the Ministry of Investment, the UK is the second largest foreign investor in Saudi Arabia with about 16 billion dollars. The statement added that the United Kingdom and Saudi Arabia announced the establishment of a joint international institute for clean hydrogen, as part of their efforts to enhance economic cooperation and achieve sustainable energy goals. The institute will be supported by a consortium of Saudi and British universities, including Newcastle University, with the aim of developing advanced expertise and skills in the field of clean energy and enhancing the reputation of the North East region as an academic engineering powerhouse. This institute is expected to contribute to creating new job opportunities and promoting innovation in the field of clean hydrogen. For his part, Ed Miliband, British Energy Minister, said that these agreements show how the United Kingdom is working with the Gulf countries to bring investment and job opportunities to Britain, adding that clean energy can be a major source of jobs in the future.

The statement mentioned that the cooperation between the United Kingdom and Saudi Arabia aims to create thousands of British jobs by stimulating investments in various cities and regions of the United Kingdom. This includes launching the first global project to produce graphene-enriched carbon fibers in the Kingdom of Saudi Arabia, led by GIM – Graphene Innovation Manchester. This project is expected to create more than 1,000 jobs in the north of England and invest £250 million in a research and innovation center in Greater Manchester. Oxford-based private equity fund HYCAP is also supporting Saudi Arabia’s plans to reach net zero emissions by 2060, investing £785m in the development of hydrogen mobility kits in Northern Ireland and across the UK, creating over 1,000 additional jobs. In a bid to boost green energy cooperation, UK-based Carbon Clean has signed a collaboration agreement with Saudi Aramco on carbon capture technology, with the aim of creating 2,000 jobs in the UK. Companies such as Sustainable Cement Company, Next Generation SCM and City Cement Company have also entered into partnerships to supply sustainable concrete, investing £200m over five years to create over 200 jobs in both countries.

Greater Manchester is also benefiting from significant Saudi investment in the housing sector, with International Investment Gate investing £41 million in the refurbishment of Brunswick Mill in Stockport, creating 277 apartments and 24 retail outlets, supporting the British Prime Minister’s goal of building 1.5 million homes by the end of the current parliament.

The “GREAT Futures” conference hosted by Saudi Arabia in May 2024 was also a key milestone in the two countries’ ongoing efforts to strengthen and expand their economic partnership. The conference was attended by 2,200 Saudi and British economic stakeholders, including around 450 British business owners.

During the conference, more than 20 bilateral ministerial meetings were held, and 13 agreements were signed in various economic fields including tourism, culture, education, health, sports, investment, trade and financial services. Ways to develop cooperation in 13 key economic areas were also discussed. The British side also appreciates the role of the Kingdom of Saudi Arabia in supporting the balance and stability of global oil markets, in addition to the reliability of supplies as a major source of crude oil. The two friendly countries are keen to enhance their strategic cooperation in various energy fields, including clean energy, dealing with the challenges of artificial intelligence, technical cooperation in the field of peaceful uses of atomic energy, and attracting British investments in renewable energy projects in the Kingdom.

The visit of Prince Mohammed bin Salman, Crown Prince, to the United Kingdom in 2018 contributed to expanding the scope of cooperation and developing relations between the two countries, during which the Saudi-British Strategic Partnership Council was launched. This strategic partnership resulted in the growth of bilateral trade between the two countries by more than 30% from 2018 to 2023, achieving 103 billion US dollars.

The two countries seek to strengthen their economic relations through a set of investment strategies and events, such as the “Saudi-British Partnership and Business Forum”, which aims to stimulate communication and mutual visits between businessmen in the two countries, and remove obstacles facing the private sector, to expand existing projects and inject new investments. The UK is the second largest foreign investor in the Saudi market with around $16 billion, with more than 1,139 British investors operating in the Kingdom, and 52 British companies have opened regional headquarters in Riyadh. This cooperation reflects the two countries’ commitment to strengthening economic and investment relations, and providing new opportunities for growth and development in various vital sectors, which contributes to achieving economic stability and promoting sustainable development for both countries.