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Trade Secretary Jonathan Reynolds and Trade Policy Minister Douglas Alexander choose the Gulf for first joint international visit since election
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Trade deal with the Gulf part of Government drive to deliver economic growth
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Ministers to showcase UK as exciting and innovative investment destination ahead of International Investment Summit next month
UK Ministers are in the Gulf this week on a joint visit to boost trade and investment, one month out from the International Investment Summit.
Trade Secretary Jonathan Reynolds and Trade Policy Minister Douglas Alexander will meet counterparts in the Gulf Cooperation Council (GCC) today [Mon 16 September] in Riyadh to discuss how to grow the UK economy by boosting trade with the region.
The GCC is made up of six countries - Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE). The UK's trade relationship with the group is already worth £57 billion.
Government announced in July it plans to deliver a high-quality trade deal with the bloc, along with other countries including India, Switzerland and South Korea.
A GCC trade deal could boost the UK economy by £1.6 billion in the long run, while allowing UK companies to take advantage of this booming market and giving British consumers access to more high-quality goods and services. Ministers will emphasise to GCC leaders that securing the deal is a top priority for the UK.
Business and Trade Secretary Jonathan Reynolds said:
"Economic growth is this government's driving mission and boosting trade and investment with some of the world's biggest economies is crucial to that.
"I want to see a high-quality trade deal that supports jobs, helps UK companies sell their products to the region and increases choice for consumers - so it's great to be here to discuss exactly that."
Ahead of the International Investment Summit on 14 October, the Trade Secretary and Minister will make clear that Britain is back as a prime investment destination. They will highlight the UK's expertise as a world leader across a wide variety of industries including technology, life sciences, creative industries, financial services and renewable energy.
The GCC has long been a valued investment partner for the UK, with a £19 billion strong investment relationship as of 2021. A new trade deal will boost that even further.
Following his visit to Riyadh, Minister Alexander will travel onto Oman to meet counterparts, including the Minister of Commerce, and some of the UK businesses who are already enjoying great success in the country.
Trade Policy Minister Douglas Alexander said:
"We are excited about the opportunities this vibrant region has to offer UK business and consumers.
"We want our trading partners in the Gulf and around the world to know that the UK is open for business and keen to negotiate trade deals that help businesses across sectors and all parts of the UK to prosper."
According to Oman's official data, the UK accounts for more than half of the entire foreign direct investment in Oman creating jobs and opportunities on both sides.
Oman is a valued investor in the UK in turn, signing major deals in areas like green energy with UK companies.
British investment in the Gulf also supports thousands of jobs back in the UK. Across the Middle East and particularly in Saudi Arabia, UK Export Finance (UKEF) is providing British businesses with the resources they need to win contracts abroad.
One example is Kiverco, a Northern Ireland-based family business which designs, manufactures and installs recycling plants globally. Through a £350,000 export insurance package from UKEF, they recently announced taking on multimillion pound contracts to export recycling machinery to Saudi Arabia, supporting over 100 UK jobs and the Saudi Vision 2040 goal of diverting 90% of waste away from landfills.
Adam Gagen, Global Head of Government Affairs at Revolut, said:
"We see the UK GCC FTA as a potential game changer for fintechs, enabling UK companies to expand into the fast-growing region whilst also making the UK the natural place for the innovative companies emerging across the Gulf to begin to go global.
"The GCC and the UK are leading the way in a number of key areas - notably open banking, AI and blockchain - and an FTA can only serve to reinforce cooperation and supercharge growth."
Adam Sopher, Co-Founder & CEO for Joe & Seph's said:
"We see our recent £1m annual contract in the region as a game changer for Joe & Seph's, a fast growing, family business which manufactures gourmet popcorn in a range of over 70 flavours.
"This contract will enable us to expand into this fast-growing region while supporting over 70 UK-based jobs. Our collaboration with our International Trade Advisor and DBT support at GulFoods has been instrumental in this success."
Notes:
Data sources:
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UK trade statistics: ONS UK total trade all countries seasonally adjusted Q1 2024
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UK FDI statistics: ONS foreign direct investment fdi totals 2020 and 2021
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Oman FDI statistics are sourced from the Sultanate of Oman National Centre for Statistics and Information (NCSI): https://www.ncsi.gov.om/News/Pages/NewsCT_20240423131547544.aspx
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The relationship between the UK and Saudi Arabia is made easier through the UK Saudi Strategic Partnership Council (SPC), a mechanism that allows the UK to support projects such as Vision 2030 as well as working on areas such as security, defence, development and international humanitarian assistance.
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During his visit to Riyadh, the Business and Trade Secretary was pleased to join the Saudi Minister for Commerce as co-chair of the Economic and Social Pillar of the SPC and was excited to help his government deliver the ambitious programme of socio-economic reform contained within Vision 2030.
