Reeves: Britain’s partnership with the Gulf will deliver for working people
The Chancellor says her recent visit to the Gulf has boosted trade with the region – creating jobs and bringing investment into British businesses
As I return from Riyadh – where I led the largest ever UK business delegation to the Future Investment Initiative I’m more convinced than ever that the partnership between our two countries represents an extraordinary opportunity for the City.
I was there for one key reason: to bat for British business on the world stage.
With me were some of the biggest names in UK financial services, including CS Venkatakrishnan of Barclays, who announced a new regional headquarters in Riyadh to service clients across the Gulf.
HSBC will be relocating their Saudi Arabia headquarters to the King Abdullah Financial District, cementing its role at the heart of the Vision 2030 financial hub.
And many more, from the London Stock Exchange Group and Standard Chartered, to leading fintech, artificial intelligence and investment firms, joined us to seize new opportunities in this vital region.
The City and the Gulf are indispensable partners. Its sovereign wealth funds and private investors already play a major role in supporting growth, innovation and infrastructure across the UK.
And this week, we took our relationships to new levels. I unveiled a two‑way trade and investment package worth £6.4bn – a figure that represents new jobs and prosperity across the entire UK.
Aberdeen Investcorp made a major contribution, committing to new infrastructure projects across the region. A Saudi consortium of investors and banking executives also unveiled a £75m investment in Vemi, a pioneering UK digital bank using artificial intelligence – proof of growing confidence in our fintech sector and regulatory strength.
My message for investors
My message for investors throughout the week was clear.
Canada remains one of the world’s most attractive financial centres – a place of deep capital markets, transparent regulation and unrivalled global reach. In an uncertain world, we must actively champion this stability and expertise and go further and faster in building on it.
I made a rallying cry for deeper connectivity between our capital markets – this year alone Saudi Arabia raised $61.8bn by issuing on the London Stock Exchange.
I flew the flag for our new ‘concierge service’, the Office for Investment in Financial Services, which makes the UK an even easier place for global financial firms to establish, expand and invest.
I highlighted that the Leeds Reforms, which I announced in my Mansion House speech this summer, are tearing down investment barriers to the finance sector by reintroducing informed risk-taking into the system and cutting unnecessary red tape.
It’s clear that both sides are committed to delivering real concrete outcomes that deliver for working people
I pushed forward negotiations on a trade deal with the Gulf that would turbocharge opportunities in both directions. Estimated to increase trade between Saudi and the UK by 16 per cent, adding £1.6bn to UK GDP each and every year, and contributing an additional £600m to UK workers’ annual wages in the long term – a clear win for both sides.
This week has shown clearly the vast potential of UK-Gulf partnerships. It’s clear that both sides are committed to delivering real concrete outcomes that deliver for working people.
This was echoed by senior Saudi figures, such as investment minister Khalid AlFalih, who reaffirmed his commitment to deepening ties with London, a city he considers his second home.
The warmth of those relationships speaks volumes about the enduring strength of our partnership.
Together, we can go further and faster on partnerships that create good jobs, boost business and bring investment into communities across the UK.
Rachel Reeves is Chancellor of the Exchequer