Saudi-UK Strategic Partnership Council Strengthens Economic and Social Ties

On May 14, 2024, the Kingdom of Saudi Arabia and the United Kingdom convened the fourth meeting of the Economic and Social Pillar of their Strategic Partnership Council in Riyadh. Co-chaired by Saudi Minister of Commerce Dr. Majid Al-Qassabi and UK Deputy Prime Minister Oliver Dowden, the session took place under the auspices of the GREAT Futures campaign and reviewed significant progress in bilateral ties, setting ambitious new goals for trade, investment, energy, education, and more.

Context and Background

The Strategic Partnership Council, established to deepen Saudi-UK relations, focuses on economic, social, and cultural cooperation. This latest meeting, held in Riyadh, underscores the strengthening alliance between the two nations, with both sides reaffirming their commitment to mutual prosperity. The discussions built on previous sessions, highlighting achievements in modernizing the bilateral relationship and aligning with Saudi Arabia’s Vision 2030 reform agenda.

Key Details

Both co-chairs welcomed record trade levels exceeding £17.3 billion and agreed to a target of £30 billion by 2030. They expressed determination to conclude an ambitious free trade agreement between the UK and the Gulf Cooperation Council. Notably, Saudi investment in the UK has reached $21 billion since 2017, while UK foreign direct investment stock in Saudi Arabia hit $13 billion in 2023. New developments include the opening of UK offices by PIF subsidiaries, NEOM, and ELM, and 52 UK companies establishing regional headquarters in Riyadh. The two countries also signed an agreement to expand investment cooperation and welcomed UKEF’s $700 million Sharia-compliant facility for Qiddiya’s Six Flags theme park.

In energy, both sides agreed to deepen cooperation on traditional and renewable energy, petrochemicals, green hydrogen, and carbon capture. On critical minerals, the UK supported Saudi Arabia’s Future Minerals Forum, and the London Metals Exchange announced plans to list Jeddah as a global warehouse location. Education initiatives include the establishment of five British schools, with a target to double that number by 2025, and the University of Strathclyde’s plans to open a campus in partnership with Princess Nourah Bint Abdulrahman University. Healthcare collaboration was expanded to include digital transformation and mental health, with the Priory Wellbeing Centre opening as the first international mental-health clinic in the Kingdom. Culture, transport, tourism, sport, and financial services also featured prominently, with Saudi issuers raising over £55.9 billion in London since 2022, including PIF’s historic green bond issuance.

Implications and Impact

The meeting’s outcomes have significant implications for both economies and the wider region. The increased trade target reflects growing economic interdependence, while investment flows, particularly in sectors like entertainment, education, and healthcare, support Saudi Arabia’s diversification efforts. The focus on energy and critical minerals addresses global supply chain security, and the educational partnerships enhance human capital development. These measures are likely to boost job creation and technological exchange, fostering a more robust bilateral economic relationship.

Vision 2030 Alignment

This joint statement aligns closely with Saudi Arabia’s Vision 2030, which aims to diversify the economy, enhance global partnerships, and improve quality of life. The ambitious trade and investment goals, coupled with advancements in education, healthcare, and innovation, directly support Vision 2030 pillars. By strengthening ties with the UK, Saudi Arabia leverages international expertise to drive economic transformation and position itself as a global investment hub. The forward-looking agenda ensures that the partnership will continue to evolve, contributing to sustainable development and mutual prosperity.

20 Questions

Q1. What is the Saudi-UK Strategic Partnership Council?

A1. The Saudi-UK Strategic Partnership Council is a high-level bilateral forum established to enhance cooperation across economic, social, and cultural fields, aligning with both countries’ strategic priorities.

Q2. Who co-chaired the fourth meeting of the Economic and Social Pillar?

A2. The co-chairs were Saudi Minister of Commerce Dr. Majid Al-Qassabi and UK Deputy Prime Minister Oliver Dowden.

Q3. When and where did this meeting take place?

A3. The meeting was held on May 14, 2024, in Riyadh, Saudi Arabia.

Q4. What was the value of bilateral trade between Saudi Arabia and the UK before this meeting?

A4. Bilateral trade had reached record levels exceeding £17.3 billion, as announced during the meeting.

Q5. What is the new bilateral trade target set for 2030?

A5. The two countries agreed to increase bilateral trade to £30 billion by 2030.

Q6. How much Saudi investment has been directed to the UK since 2017?

A6. Saudi investment into the UK since 2017 has totaled $21 billion.

Q7. What is the value of UK foreign direct investment stock in Saudi Arabia as of 2023?

A7. UK foreign direct investment stock in Saudi Arabia reached $13 billion as of 2023.

Q8. How many UK companies are establishing regional headquarters in Riyadh?

A8. Fifty-two UK companies are establishing regional headquarters in Riyadh, according to the joint statement.

Q9. What support did UK Export Finance provide for Qiddiya’s Six Flags theme park?

A9. UKEF supported a landmark $700 million Sharia-compliant financing facility for the development of Qiddiya’s Six Flags theme park.

Q10. What cooperative areas in energy were agreed upon?

A10. Both sides agreed to cooperate in traditional and renewable energy, petrochemicals, energy efficiency, green hydrogen, sustainable materials, and carbon capture.

Q11. What is the target for British schools in Saudi Arabia by 2025?

A11. The two nations aim to double the number of British schools to ten by 2025.

Q12. Which UK university plans to open a campus in Saudi Arabia?

A12. The University of Strathclyde plans to become the first UK higher education institution to establish a physical presence in Saudi Arabia.

Q13. How many Saudi students are currently studying in the UK?

A13. Currently, 14,000 Saudi students are pursuing their studies in the United Kingdom.

Q14. What new healthcare initiatives were acknowledged?

A14. The opening of the Priory Wellbeing Centre, the first international mental-health clinic in Saudi Arabia, and King’s College Hospital in Jeddah were acknowledged.

Q15. What cultural cooperation was highlighted?

A15. The Science Museum’s agreement with the Ministry of Culture and the UK National Archives’ partnership to digitize Saudi cultural records were highlighted.

Q16. What tourism training initiative was announced?

A16. A joint program aims to train 5,000 Saudi citizens in UK tourism institutes by the end of 2026.

Q17. Which universities are involved in sports partnerships?

A17. Loughborough University partnered with Leaders Development Institute, and Newcastle University continues to support women in sport.

Q18. How much capital have Saudi issuers raised in London since 2022?

A18. Saudi issuers have raised over £55.9 billion in London since 2022, including £11 billion for green, social, and sustainable finance.

Q19. What was PIF’s landmark bond issuance?

A19. PIF’s debut bond issuance was the first-ever green bond issuance by PIF and the first-ever 100-year green bond issuance.

Q20. What is the significance of the London Metals Exchange’s announcement regarding Jeddah?

A20. The London Metals Exchange intends to list Jeddah as a new global metals warehouse location, enhancing Saudi Arabia’s role in critical minerals trade.

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