LONDON, England – UK Export Finance (UKEF), the UK’s export credit agency, and PIF have signed a Memorandum of Understanding (MoU) to strengthen financial cooperation and expand trade and investment opportunities between the United Kingdom and Saudi Arabia.
The signing took place in the presence of Chancellor Rachel Reeves and minister for investment Lord Stockwood, who attended the 9th Edition of the Future Investment Initiative in Riyadh.
Chancellor Rachel Reeves, said:
“We’re committed to strengthening the economic partnership between Britain and Saudi Arabia, recognising the prize on offer from the opportunities for British businesses in one of the world’s fastest-growing economies. This is exactly the kind of international cooperation that will drive growth, create good jobs and deliver higher living standards for working people across the UK.”
UKEF has a total market risk appetite of £4-5 billion in Saudi Arabia. Through this MoU, the agency will partner with PIF – Saudi Arabia’s sovereign wealth fund – and its portfolio companies to access a pipeline of existing and prospective projects in the country that, if backed with UKEF financing, will offer numerous supply contracts for UK-based suppliers. The agreement will make it more attractive for companies in PIF’s ecosystem to procure goods and services from UK contractors.
The MoU will facilitate a financial structure to support Saudi Arabia’s PIF and its portfolio companies in procuring goods and services from UK companies.
The MoU also establishes a framework for closer cooperation between PIF and UKEF, that would see them share business experience and knowledge, and work together to identify mutually beneficial opportunities.
The MoU underlines PIF’s strategy to diversifying funding sources through strong partnerships with reputable and leading international institutions, while providing its portfolio companies with greater access to global markets as these companies continue to grow domestically and globally and attract capital globally.
UKEF CEO Tim Reid, said:
“Saudi Arabia’s ambitious Vision 2030 programme 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.
“This partnership demonstrates the UK’s commitment to supporting British exporters as they compete and win in one of the world’s most dynamic markets, while helping to deliver the infrastructure and innovation that will shape Saudi Arabia’s future.”
