The City can help build bridges to Gulf states
AT A time when political tensions are running high in Syria, Iran and parts of the Gulf now might not seem like the best time to be leading a senior City business delegation to the region.
Business confidence relies on a stable environment but despite the current uncertainty there remain huge two-way opportunities for closer partnership between the UK and the Gulf, which is why I am currently banging the drum for UK PLC on a business visit to Kuwait, Qatar, the UAE and Saudi Arabia.
2012 will mark what could be seen as the crystallisation of this longstanding regional relationship.
The completion of the Shard of Glass, the tallest building in London and the European Union, will help to reshape the capital’s skyline and showcase how trade and investment flows – Qatari in this case – can benefit both sides through shared expertise and job creation.
And this is just a fraction of the inward investment to come from the Gulf, which totalled £2.25bn last year across sectors as diverse as banking, infrastructure, real estate and sport.
Of course, the Gulf is also a major market for UK goods and services. Exports totalled £14bn in 2009, on a par with China and India combined, and increased by nearly a fifth in 2010.
My business visit is designed to build on the impetus secured by the government’s increased focus on this region.
Gulf countries are striving to diversify away from oil and gas, which will ultimately require opening up economies and bringing down barriers to trade and investment.
This will present major opportunities for City firms. During our time here in the Gulf we will show why the UK should continue to be the commercial partner of choice across a range of sectors including education and training, asset management, insurance and Islamic finance.
But perhaps the biggest opportunity of all lies in supporting the vast infrastructure work planned in the region.
Infrastructure projects worth over £1 trillion are currently planned or underway in the region in areas such as airports, mass transit systems, ports and hospitals. The City has vast experience in mobilising the capital and providing the design, project management and advisory services needed to deliver such large-scale projects, whether through PPP or other models.
These countries recognise that infrastructure is a key component when it comes to attracting leading institutions and individuals in a competitive global market. British companies have a track record of delivering world-class infrastructure and closer partnership will help Gulf states meet their strategic development objectives.
From the City’s perspective, we believe that sharing skills and experiences will ensure this longstanding relationship continues to go from strength to strength despite the recent turbulence.
The past twelve months have seen momentous change in the Gulf as the Arab Spring has reshaped regional politics. We remain committed to strengthening ties – and City firms have a key role to play in achieving this objective.
David Wootton is Lord Mayor of Canada.