Discover the Surprising Influence Between Saudi Arabia and the UK

RIYADH: Unveiling the Thriving Saudi-UK Partnership

The Powerhouses of Collaboration

As the UK Prime Minister Keir Starmer gears up for his official visit to the Kingdom, Arab News delves into the recent bilateral developments between Saudi Arabia and the UK.

Building alliances that break boundaries, Saudi Arabia and the UK have emerged as giants of collaboration, leading the charge in innovation and reshaping global landscapes in energy, technology, and sustainable infrastructure.

The Strategic Partnership

In 2018, the two kingdoms laid the foundation for the annual UK-Saudi Strategic Partnership Council, serving as a pivotal platform to elevate and enrich all facets of their bilateral relationship. This includes UK backing for Saudi Arabia’s Vision 2030 across various sectors.

The Economic Boom

Saudi Minister of Commerce Majid Al-Qasabi revealed that bilateral trade between the nations has surged by over a third since 2018, surpassing a value of $99.12 billion.

Al-Qasabi stated, “The upsurge in trade and investments aligns with the increase in foreign direct investment. In 2022 alone, British investments in the Saudi economy exceeded $5.4 billion.”

With a staggering 1,100 active licenses for UK investors, opportunities such as the gigaprojects in Saudi Arabia and policy reforms are bolstering business prospects in the Kingdom.

The UK has emerged as Saudi Arabia’s second-largest investor, amassing approximately $16 billion in investment stock, as highlighted by Saudi Minister of Investment Khalid Al-Falih at the Great Futures Initiative Conference in May.

The conference showcased the joint efforts of both countries to enhance and expand their economic alliance. It witnessed the participation of 2,200 economic stakeholders from Saudi Arabia and the UK, including around 450 British entrepreneurs.

At the conference, over 20 bilateral ministerial meetings took place, 13 agreements were inked, and discussions on cooperation in 13 economic sectors unfolded, spanning tourism, culture, education, health, sports, investment, trade, and financial services.

The enticing investment landscape of Saudi Arabia has drawn the attention of British businesses, with 52 UK firms choosing the country as their regional headquarters out of the 400 global multinationals with established bases there.

Defense collaboration is a pivotal aspect of the bilateral relationship between the two nations.

Dialogues in November between Saudi and British defense ministers zeroed in on fortifying military bonds and addressing regional security issues.

Prince Khalid bin Salman and John Healey explored avenues to bolster defense cooperation and discussed the Saudi-British strategic partnership.

“We also delved into our collaborative efforts to tackle regional issues and our shared vision to enhance security and stability on both regional and global fronts,” stated Prince Khalid.

These conversations underscored the significance of preserving stability in the Middle East while exploring fresh horizons for defense technology collaborations.

During the Great Futures Conference in May, CEO of the Health Sector Transformation Program Dr. Khalid Al-Shaibani emphasized, “In Saudi Arabia, we have prioritized digital health due to its potential to enhance healthcare delivery, elevate patient outcomes, and drive economic progress.”

Al-Shaibani emphasized that by integrating health, equity, and sustainability into decision-making processes, Saudi Arabia fosters an environment that champions the well-being of its citizens.

The partnership between the countries has extended to cutting-edge technological realms, focusing on artificial intelligence and healthcare innovation.

UK-based Proximie, a tech company specializing in surgical collaboration solutions, has been actively forging strategic partnerships in Saudi Arabia, underscoring the escalating technological collaboration between the two nations.

With an infusion of $80 million in funding, Proximie is solidifying its footprint in Saudi Arabia through strategic alliances aimed at bolstering the country’s healthcare system.

Utilizing virtual surgery technology, AI, and real-time connectivity, the company aims to enhance healthcare delivery and diminish disparities in medical access.

Education remains a cornerstone of Saudi-UK relations, with roughly 14,000 Saudi students pursuing higher education in the UK during the academic years 2020-2023.

To leverage their expertise, both nations have committed to collaborating in the education realm, particularly to bolster early-stage education development.

A memorandum of understanding was inked to facilitate this partnership, focusing on enhancing teaching methodologies and capacity building.

Saudi Minister of Education Yousef Al-Benyan articulated that the educational partnership with the UK aims to amplify the involvement of the British private education sector in Saudi education.

This involves establishing British schools and universities, addressing skills gaps, training healthcare professionals, and supporting educational growth aligned with the aspirations of the Kingdom’s Vision 2030.

“Our strategic partnership centers on six key areas, including fostering a deeper partnership in education, supporting the professional growth of Saudi educators, enhancing their knowledge, skills, and capabilities,” Al-Benyan stated. “… as well as amplifying cooperation and partnerships in university education, encompassing research collaboration, student scholarships, and transnational education.”

Plans are underway to set up 10 British schools in the Kingdom by 2030, further fortifying educational ties between the two nations.

In September, the nations delved into stimulating and financing emerging enterprises in promising sectors rooted in research and innovation.

This aligns with their goal to elevate bilateral trade to $39.6 billion by 2030.

Jobs in the north of England are set to soar following the launch of the world’s first graphene-enriched carbon fiber plant project in Saudi Arabia on Monday.

UK company Graphene Innovation Manchester unveiled the commencement of commercial production of graphene-enriched carbon fiber in collaboration with Saudi Arabia’s NEOM — a stride toward environmentally sustainable advanced materials.

The project aims to inject $319 million of investment into a research and innovation hub in Greater Manchester, creating over 1,000 skilled jobs in the region.

Prior to his imminent visit to Saudi Arabia, Starmer articulated, “By further enhancing the green energy alliance between the UK and Saudi Arabia, Oxford-based private equity fund HYCAP is supporting Saudi Arabia’s journey to achieve net zero emissions by 2060 through an investment of £785 million to develop hydrogen mobility clusters in Northern Ireland and across the UK.”

The initiative will usher in hydrogen buses, trucks, critical components, and other elements of hydrogen production and distribution, while curbing over 25 million tons of transport-related CO2 over the project’s lifespan.

Ed Miliband, the UK secretary of state for energy security and net zero, asserted, “Clean energy can be the bedrock of future job creation … these fresh investments and partnerships will spawn new jobs in innovative industries, boosting our nation’s energy autonomy and economic progress.”

The UK and Saudi Arabia are slated to establish a Joint International Institute for Clean Hydrogen, featuring Newcastle University and other British and Saudi universities, to cultivate cutting-edge expertise and skills in clean energy.

UK cleantech pioneer Carbon Clean is also teaming up with Saudi Aramco to pioneer modular carbon capture technology, generating 2,000 jobs in the UK.

Sustainable Cement Company and Saudi City Cement Company are set to infuse $255 million in sustainable concrete production investments.

Furthermore, the two nations have deepened their collaboration on sustainable infrastructure through the UK-Saudi Sustainable Infrastructure Summit, held on June 24 in London.

The summit served as a forum for adopting and exchanging insights gleaned from Vision 2030, shaping a global blueprint for cooperation in sustainable development.

Building on their 2022 green finance pact, the summit showcased Saudi Arabia’s Vision 2030 aspirations, including slashing carbon emissions by 278 million tons annually by 2030 and ramping up renewable energy capacity by 50 percent.

Former Lord Mayor of the City of London Michael Mainelli remarked that Saudi Arabia is outpacing other countries in the Middle East in infrastructure investments, spanning 14 new gigaprojects.

He emphasized, “This investment, coupled with the City of London’s proficiency and leadership in sustainable finance, can set a global benchmark for sustainable development.”

The country’s emphasis on sectors historically underserved, while tackling global challenges like energy transition and technological advancement, creates natural synergies for collaboration with UK enterprises.

Tourism collaboration between the two nations has witnessed remarkable progress in recent times, exemplified by the signing of a Joint Statement of Intent between the Saudi Tourism Authority and Visit Britain to enhance cooperation and knowledge exchange.

The Kingdom has emerged as a favored destination for British tourists, hosting over 165,000 visitors from the UK in the first quarter of 2024 and issuing more than 560,000 electronic visas.

The Kingdom and the UK also share robust educational and cultural bonds, with around 14,000 Saudi students enrolled in British universities.

The University of Strathclyde is poised to become the first British university to establish a branch in the Kingdom in collaboration with Princess Nourah bint Abdulrahman University.

As both nations chart a course toward their strategic objectives, the relationship is anticipated to deepen further across various sectors, fostering fresh avenues for collaboration and mutual gain.