Saudi-UK partnerships drive trade surge with over 60 initiatives across 13 sectors

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Updated 14 May 2024
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Saudi-UK partnerships drive trade surge with over 60 initiatives across 13 sectors

RIYADH: Partnerships between Saudi Arabia and the UK cover over 60 initiatives across 13 sectors, with trade between the countries up a third since 2018, according to a top official.

Speaking during the opening remarks of the GREAT Futures Initiative Conference held in Riyadh, the Kingdom’s Minister of Commerce, Majid Al-Qasabi, noted that bilateral trade surged between 2018 and 2023, exceeding £79 billion ($99.12 billion).

With over 1,100 active licenses for UK investors, developments such as the giga-projects in Saudi Arabia and policy reforms are strengthening business opportunities in the Kingdom.

“The growth and the inflow of trade is matched by the growth in foreign direct investment. In 2022 alone, the inflow of British investment into (the) Saudi economy reached more than £4.3 billion,” Al-Qasabi said. 

He added: “Our strong bilateral economic ties are underpinned by strong educational and cultural ties. In the academic years of 2020 to 2023, 14,000 Saudi students were pursuing their higher education in the UK.”

The UK’s Deputy Prime Minister Oliver Dowden used his appearance on a panel alongside Al-Qasabi to say that he is “particularly excited about sports and tourism” when it comes to increased cooperation with the Kingdom.

“We will enhance decision-making and collaborations across various sectors, which is wonderful and amazing, enhancing our prosperity as two countries. We also look forward to these collaborations,” he said.   

Highlighting the UK as the second largest exporter of services in the world, Al-Qasabi stated that Saudi Arabia is looking into new trade across the cultural, sports, and entertainment areas, as well as financial and insurance spheres.

However, Dowden noted that a few additional sectors, including technology and artificial intelligence, were not covered.

“I think there’s a lot more we can do to collaborate together because there’s huge expertise in artificial intelligence in Saudi Arabia,” Dowden said.

He also flagged up education as an area for growth, saying that by 2030 there should be 10 British schools in the Kingdom.  

“Having a presence in Saudi Arabia has always been a strength to the British education system, so that’s a tremendously exciting area for us,” Dowden said, adding that healthcare is also an area for expansion.

Additionally, Saudi Minister of Investment Khalid Al-Falih highlighted that the second largest investor in Saudi Arabia is the UK, which has accumulated about $16 billion in investment stock.

He continued: “I will also mention our regional headquarters program where we have attracted over 400 global multinational companies to choose Saudi Arabia as their hub, I’d say as their home countries. I am proud and happy that 52 of those are from the UK and we are happy to offer this platform to grow and prosper.”

Al-Falih also stated that Saudi Arabia needs to develop a new economy, focusing on sectors that have been historically under-invested in, while also tackling global challenges.

The minister emphasized that the UK and Saudi Arabia, as leading G20 economies, are experiencing significant changes driven by megatrends such as energy and technological transitions, as well as challenges like AI and disruptions in global supply chains.

However, he said: “There needs to be green energy embedded in our supply chain. What we want to do is build these new supply chains that are built on … efficient logistics, technology, automation, Fourth Industrial Revolution, accessing critical materials, not only in the Kingdom but in Africa."

On a hosting front, Minister of Tourism Ahmed Al-Khatib stated that the Kingdom has witnessed a remarkable 390 percent increase in demand for tourism activity licenses, with over 165,000 British travelers visiting Saudi Arabia in the first quarter of this year.

“The issuance of 560,000 electronic visas to the UK tourists since 2019 underscores the growth in a growing interest in visiting our Kingdom. Our aim is to further increase connectivity and expand the presence of traditional sales operators,” Al-Khatib said.

Furthermore, the Secretary of State for Culture, Media and Sport of the UK, Lucy Frazer, stated that in 2022, the nation welcomed over 200,000 visitors from the Kingdom.

She quoted the UK’s national tourism agency VisitBritain’s latest forecast, which predicts 240,000 visits from Saudi Arabia this year.

“This is another area where you are testing the fundamentals. Looking up the tourism infrastructure needed to make Saudi Arabia a magnet for visitors doing what is needed to increase the number of annual travelers to the Kingdom from 14 million to 60 million in the next five years,” Frazer continued.

She also stated that many British sports stars will soon start playing in Saudi Arabia. 

On the first day of the event, Red Sea Global CEO John Pagano stated that the first phase of project work will be completed in 2025, as the company is “currently working on the Red Sea International Airport project and have operated eight flights to Riyadh, Jeddah, and Dubai.”

Chemicals firm to open Saudi office

Maurits van Tol, CEO of Catalyst Technologies for Johnson Matthey, has announced that the company will open its office in Riyadh

“We traditionally have catered to the Kingdom from our offices in Bahrain and Abu Dhabi. But what we are also now, we will announce this week, is that we will open our office in Riyadh,” van Tol told Arab News. 

“We just signed all the paperwork, and we will have the first people starting to work in the office very soon, and then we have a little bit of a bigger opening somewhat later in the year,” he said.

Van Tol said the office is set to open sometime between late summer and autumn with staff members from Saudi Arabia and the UK. 

The company’s expansion is a part of Johnson Matthey’s aim to enhance local and regional collaboration.

Van Tol discussed the company’s expansion during a panel discussion titled “Powering a Greener Future” at the GREAT Futures event in Riyadh on May 13.

During the session, he highlighted Johnson Matthey’s technologies and their role in developing sustainable aviation fuel and other low-carbon solutions. 

Van Tol said: “JM technologies will support KSA as it seeks to diversify its energy sources and reach its sustainability goals. We can and will help it make its vision to lead the world in making a circular carbon economy a reality.”

He said Johnson Matthey has been working in the region for 35 years, including collaborating with the King Abdullah University of Science and Technology.

“When you look at the Kingdom’s Vision 2030, there is a lot about reduce, reuse, recycle and remove … it’s also that place at the heart of what we do at Johnson Matthey,” Van Tol said. 

 “We design intrinsically energy-efficient technologies, but also we have a very broad suite of technologies that can convert renewables, including CO2, with renewable hydrogen, into synthetic aviation fuel,” he added.


JS Investments launches Pakistan’s ‘first’ Shariah-compliant real estate investment trust

Updated 43 min 49 sec ago
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JS Investments launches Pakistan’s ‘first’ Shariah-compliant real estate investment trust

  • JS Investments partners with real estate developer Gohar Group of Companies to establish JS Hotel REIT in Hyderabad
  • REIT is a regulated investment vehicle that pools capital from investors to finance income-generating real estate

KARACHI: A Pakistani investment firm on Wednesday announced the launch of what it described as the country’s first Shariah-compliant real estate investment trust (REIT) focused on the hospitality sector.

A REIT is a regulated investment vehicle that pools capital from investors to finance income-generating real estate, offering returns through rent or capital gains. It provides exposure to the property market without direct ownership of assets.

JS Investments Limited, one of Pakistan’s oldest private-sector asset and REIT managers, has partnered with real estate developer Gohar Group of Companies to establish the JS Hotel REIT in Hyderabad district, located in the southeastern Sindh province.

“As the manager of Pakistan’s first hotel REIT, we are pleased to offer investors a professionally managed and regulated investment vehicle backed by international hospitality standards,” the statement quoted Iffat Zehra Mankani, CEO of JS Investments Limited, as saying.

The REIT will finance the development of a 139-room hotel in Hyderabad under a franchise agreement with an international hospitality brand. The fund is currently open to accredited local and foreign investors through private placement.

The statement added the Securities and Exchange Commission of Pakistan (SECP) had granted regulatory approval for the fund, which is not being offered to the general public at this stage.

Pakistan’s REIT market remains small, though regulatory reforms in recent years have aimed to draw institutional investment into real estate through both conventional and Islamic finance structures.

The project will also feature environmentally responsible construction, according to the statement.


Closing Bell: Saudi main index ends lower at 11,303 

Updated 21 May 2025
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Closing Bell: Saudi main index ends lower at 11,303 

  • MSCI Tadawul 30 Index lost 19.78 points to close at 1,441.01
  • Parallel market Nomu declined 110.94 points to end at 27,417.62

RIYADH: Saudi Arabia’s Tadawul All Share Index closed in the red on Wednesday, falling 134.5 points, or 1.18 percent, to settle at 11,303.68. 

The total trading turnover reached SR4.37 billion ($1.16 billion), with 37 stocks advancing and 206 declining. 

The MSCI Tadawul 30 Index also dropped, losing 19.78 points, or 1.35 percent, to close at 1,441.01. 

The Kingdom’s parallel market Nomu declined by 110.94 points, or 0.40 percent, to close at 27,417.62, with 26 stocks gaining and 49 retreating. 

The best-performing stock of the day was Saudi Arabia Refineries Co., rising 4.38 percent to SR69.10. 

Other top gainers included Perfect Presentation for Commercial Services Co., whose share price rose 3.37 percent to SR11.66, and SHL Finance Co., which gained 2.22 percent to SR20.30. 

The day’s largest decline was seen in National Gypsum Co., with its share price dipping 4.76 percent to SR20.4. 

ACWA Power Co. saw its shares drop 4.40 percent to SR274, while Al-Rajhi Co. for Cooperative Insurance declined 4.17 percent to SR115. 

On the announcements front, ACWA Power said it has received approval from the Capital Market Authority to proceed with a SR7.12 billion capital increase through a rights issue. 

The CMA’s decision, issued on May 20, allows the company to offer, register, and list rights issue shares — pending shareholder approval at an upcoming extraordinary general assembly. 

The rights issue was first disclosed on Dec. 19, when ACWA Power submitted its application to the CMA. 

Alinma Bank has successfully completed a $500 million issuance of dollar-denominated sustainable Additional Tier 1 capital certificates under its Tier 1 Capital Certificate Issuance Programme. 

The offering targets eligible investors in Saudi Arabia and internationally, with settlement expected on May 28. 

The issuance comprises 2,500 certificates, each with a par value of $200,000, offering an annual return of 6.5 percent. These perpetual instruments are callable after 5.5 years. 

The certificates will be listed on the International Securities Market of the London Stock Exchange and were offered exclusively under Regulation S of the US Securities Act of 1933. 

During Wednesday’s session, Alinma Bank shares rose 0.18 percent to close at SR27.50 on the main market. 

Flynas has set the final offer price for its initial public offering at SR80 per share following the successful completion of the institutional book-building process, which was oversubscribed by 99.8 times, according to a statement.

BSF Capital, Morgan Stanley Saudi Arabia, and Goldman Sachs Saudi Arabia, acting as joint financial advisors, co-underwriters, and joint bookrunners for the IPO, confirmed that institutional investors subscribed in full to the 51,255,568 ordinary shares allocated in the first phase, representing 100 percent of the total offered.

Following this, up to 20 percent of the total offering will be allocated to retail investors in the second phase of the IPO.

Saudi Fransi Capital, serving as lead manager, announced that all necessary arrangements have been completed with receiving agents to facilitate the individual subscription process, which will run for three days from May 28 until June 1 at 12:00 p.m.


Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

Updated 21 May 2025
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Saudi Arabia’s PIF halts Swiss financial market investments over Credit Suisse fallout

  • Decision driven by how Swiss regulators handled 2023 government-backed rescue of Credit Suisse by UBS Group
  • PIF continues to expand footprint across Europe, signaling redirection of capital

RIYADH: Saudi Arabia’s Public Investment Fund will no longer allocate capital to Switzerland’s financial markets, two years after suffering losses from the collapse of Credit Suisse.

During the FII PRIORITY Europe Summit in Albania, PIF Gov. Yasir Al-Rumayyan said that the decision was driven by the manner in which Swiss regulators handled the 2023 government-backed rescue of Credit Suisse by UBS Group, reported Bloomberg.

The abrupt deal was executed without shareholders’ approval, impacting investors across the Middle East.

PIF, one of the world’s largest sovereign wealth funds, is reassessing its investment strategy amid growing concerns over regulatory stability and investor protection.

The fund’s decision to halt investments in Switzerland’s financial markets marks a significant shift in its approach, underscoring the long-term impact of the 2023 Credit Suisse collapse on regional and institutional investor confidence.

PIF also continues to expand its footprint across Europe, signaling a redirection of capital.

“We’re not going to invest in the financial markets in Switzerland. If you change something overnight and wipe out all of your investors, this is a big red flag,” Al-Rumayyan said, as reported by Bloomberg.

The remarks were made during an on-stage discussion with Noel Quinn, newly appointed chairman of Zurich-based Julius Baer Group Ltd.

Quinn responded: “As the chairman of a Swiss bank as of 10 days ago, that concerns me.”

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price.

The plunge became worse after the former chairman of the Saudi National Bank, Ammar Al-Khudairy, said the bank would “absolutely not” be open to further investments in Credit Suisse.

“The deal didn’t receive approval from either Credit Suisse or UBS shareholders as regulators and lawmakers rushed to contain a crisis of confidence that was spreading across global markets,” according to Bloomberg.

The 2023 acquisition of Credit Suisse was finalized rapidly following a sharp decline in its stock price. Shutterstock

At the time, shareholders from the Middle East, including SNB and the Qatar Investment Authority, collectively held around 20 percent of Credit Suisse.

SNB, which was the largest shareholder in the Swiss lender, had called on Credit Suisse to reject the offer from UBS, Bloomberg reported.

Other investors had cautioned that the Swiss government’s decision to override standard merger procedures and sideline shareholder votes could deter institutional investors.

Legal analysts also warned that the rushed nature of the transaction had undermined Switzerland’s standing as a reliable investment destination where the rule of law is safeguarded.

Al-Rumayyan’s remarks came as PIF announced plans to open a subsidiary office in Paris and committed to doubling its investments in Europe to $170 billion by the beginning of the next decade.

The fund has already deployed approximately $85 billion across the region between 2017 and 2024, making strategic investments in key European economies, including the UK, France, and Italy.


Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

Updated 21 May 2025
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Saudi Arabia and Kyrgyzstan announce establishment of a joint business council 

  • Forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan
  • Bilateral meetings were held between company representatives from both countries

BISHKEK: Saudi Arabia and Kyrgyzstan, represented by the Saudi Chambers Federation and the Kyrgyz Chamber of Commerce and Industry, announced the signing of an agreement to establish a Saudi-Kyrgyz Joint Business Council — a significant step to advance economic cooperation between the two countries. 

The signing ceremony took place on the sidelines of the Saudi-Kyrgyz Business Forum held on May 21 in Bishkek, the Kyrgyz capital, in the presence of Kyrgyz Minister of Economy and Commerce Bakyt Sydykov, Saudi Chambers Federation Chairman Hassan bin Muajab Al-Huwaizi, and several ministers and officials from both nations, the Saudi Press Agency reported. 

The forum was also attended by Saudi-Kyrgyz Business Council Chairman Ahmed Al-Dakhil, Saudi Arabia’s Ambassador to Kyrgyzstan Ibrahim bin Radi Al-Radi, Kyrgyzstan’s Ambassador to Saudi Arabia Ulukbek Maripov, along with more than 100 investors. 

The chairman of the Saudi Chambers Federation emphasized that the establishment of the joint business council is the result of sustained efforts and mutual desire, providing an effective platform for Saudi and Kyrgyz businessmen to showcase and promote their activities and build commercial partnerships, amid vast opportunities for cooperation between the two countries. 

The joint business forum reviewed investment opportunities, advantages, and incentives in Saudi Arabia and Kyrgyzstan across sectors including exports, healthcare, pharmaceuticals, banking, hydropower, agriculture, and technology. 

Bilateral meetings were also held between company representatives from both countries. 

Notably, the federation’s delegation visits to Kyrgyzstan included a series of meetings with government and private sector officials to discuss prospects for economic cooperation and explore investment opportunities. 


Saudi crude output hits 8.96m bpd in March: JODI data

Updated 21 May 2025
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Saudi crude output hits 8.96m bpd in March: JODI data

  • Crude exports fell by 12.11% month on month to 5.75 million bpd
  • Kingdom’s slight increase in crude production came amid a broader strategic pivot within OPEC+

RIYADH: Saudi Arabia’s crude oil production rose to 8.96 million barrels per day in March, reflecting a 0.11 percent monthly increase, according to the latest Joint Organizations Data Initiative data.

According to the database, crude exports fell by 12.11 percent month on month to 5.75 million bpd.

Refinery crude exports rose 10.3 percent during this period to 1.55 million bpd. The uptick was driven primarily by diesel shipments, which jumped 20.66 percent from the previous month to 806,000 bpd.

It also accounted for the largest share of refined product exports in March at 52 percent, followed by motor and aviation gasoline at 17 percent, and fuel oil at 12 percent.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase, with diesel comprising 42 percent of refined products, motor and aviation gasoline 24 percent, and fuel oil 15 percent.

Domestic demand for refined petroleum products increased by 223,000 bpd in March compared to the previous month, reaching 2.22 million bpd.

On an annual basis, demand rose by 5.07 percent, equivalent to 107,000 bpd.

The Kingdom’s slight increase in crude production across the month came amid a broader strategic pivot within OPEC+, which has agreed to significantly boost oil output starting in June. The alliance announced an additional 411,000 bpd increase for June, following a similar adjustment made for May.

This marks a continuation of the group’s recent efforts to accelerate the return of previously curtailed supply to the global market. The upcoming increase is expected to add further downward pressure on prices, which have already been trending lower due to ample inventories, modest international demand growth, and increasing non-OPEC output.

Total refinery output reached 2.94 million bpd in March, a 12.32 percent monthly increase. Shutterstock

Direct crude usage

Saudi Arabia’s direct crude oil burn rose to 383,000 bpd in March, reflecting a 35.3 percent increase from the previous month.

Direct crude burn refers to the use of unrefined crude oil for electricity generation, rather than for export or refining.

The increase came amid the seasonal ramp-up in cooling needs as temperatures begin to rise heading into the warmer months.

Although the Kingdom has made substantial progress in expanding its natural gas infrastructure to reduce reliance on direct crude burn, fluctuations still occur, particularly in transitional months like March, when energy demand begins to shift but supply systems have not fully ramped up.