The City of London must embrace its friendship with Saudi Arabia
By working together, the UK cannot only help Saudi Arabia realise its ambitious vision but also secure new growth for both our nations, writes Lord Mayor Alastair King
With long eyelashes to protect its eyes from sand and humps that store fat for energy, the Kingdom of Saudi Arabia’s national animal, the camel, has adapted to thrive in the extremes of the Arabian desert.
Saudi Arabia itself is undergoing a dramatic transformation to adapt to our changing world. With the oil market rocked by global events and the move towards renewable energy signalling a long-term decline in demand, economic diversification has become a top priority for Gulf Cooperation Council (GCC) economies.
The International Monetary Fund projects that GCC economies will grow at a rate of 4.2 per cent in 2026, exceeding the global average of 3.3 per cent, with non-fossil fuel industries helping drive that remarkable growth.
The City is perfectly placed to support the Gulf nations
Thanks to our large and deep capital markets, world-class clusters of expertise, enabling regulatory environment, talented workforce, thriving innovation ecosystem, commitment to openness, and more besides, the Square Mile is perfectly placed to help Gulf nations achieve their economic ambitions: a case I put across during a recent visit to Saudi Arabia, Qatar and the United Arab Emirates amid increasing optimism about a GCC-UK free trade agreement.
Having so far committed to $1.3 trillion worth of construction and real estate projects – including mega projects like the futuristic NEOM region – Saudi Arabia is on track to become the world’s largest construction market by 2028. These projects are not just about bricks and mortar, they are about job creation, creating a higher quality of life and a safer, more sustainable legacy for future generations – so they require innovative solutions, international partnerships and state-of-the-art financing strategies.
From our leadership in sustainable finance and risk management to our experience structuring infrastructure projects, the Square Mile has the right tools to support Saudi Arabia’s transformation. Indeed, the United Kingdom has established itself as a one-stop-shop for countries seeking capital and expertise to help them meet their sustainability goals: leadership that will be on show at the City of London Corporation’s Net Zero Delivery Summit later this month.
During my trip to major Middle East markets last week, I opened the first United-Kingdom Saudi Sustainable Infrastructure Assembly in Riyadh: a new platform for financial and professional services professionals and developers to collaborate, exchange expertise and unlock new commercial opportunities.
Through the Assembly – a collaboration between the City Corporation, the Department for Business and Trade and Saudi Arabia’s Ministry of Investment – British firms will gain exposure to high-profile Saudi infrastructure projects, while Saudi stakeholders will benefit from our expertise in structuring and financing appropriate projects, with the intention of lowering the cost of capital for these projects.
The Assembly will initially focus on projects such as the new Electric Vehicle Infrastructure Company, led by Saudi Arabia’s Public Investment Fund, and the Prince Faisal Bin Fahad Sustainable Sports City project, spearheaded by Saudi Arabia’s National Centre for Privatization.
Membership includes the CEO of UK Export Finance, the Saudi National Infrastructure Fund and the Public Investment Fund, and the next meeting will be held at Mansion House in July.
Unleashing growth together
Sustainable infrastructure is just one area where we are forging stronger ties with the GCC, our fourth largest trading partner. Our strong institutions, respect for the rule of law and stable government make the United Kingdom a safe harbour for Gulf-based investment in increasingly stormy seas.
In meetings with key stakeholders, I outlined how, through my theme, Growth Unleashed, we are making our offer to our Gulf partners even stronger. The City Corporation is partnering with the government and regulators to launch a new investment hub that will make it easier for international firms to navigate the United Kingdom’s regulatory landscape and broader barriers to entry. Further, the Mansion House Accord presents an opportunity for GCC sovereign wealth funds and institutional investors to partner with British pension funds in long-term, stable, high-potential sectors. The Accord will mean the British pension funds will be more willing to co-invest in projects in the United Kingdom and around the world. The opportunities that this will present should not be underestimated.
There is an Arabic proverb which teaches that “you cannot clap with one hand”. By leveraging our leadership and expertise in investment, we will not only help Saudi Arabia realise its ambitious vision but also secure new growth for both our nations. Our message to our Saudi friends is clear: let us build and grow together.
Alastair King is Lord Mayor of London