United Kingdom’s Finance Minister Rachel Reeves expressed confidence about securing a quick trade deal with Gulf countries, following her “really good” meetings in Riyadh, as the European country aims to speed up its lagging economic growth.
“I am really confident we can get that deal over the line,” she said at a forum held in the Saudi capital, adding that she was hopeful the agreement could be reached “very soon,” as reported by Arab News.
The trip will be the first by a British Finance Minister to the region in six years, and Rachel Reeves will hope to advance trade talks with the Gulf Cooperation Council (GCC), a six-nation group with which British administrations have sought to reach an agreement since the UK left the European Union (EU) in 2020.
Saudi Arabia’s Public Investment Fund (PIF) in 2024 purchased a 15% stake in London’s Heathrow Airport from Spanish construction company Ferrovial, and Britain said it expected more investment announcements in 2025.
In June, Riyadh Air, the new state-owned airline, announced its first flight would be to Heathrow and ordered 25 partly British-built Airbus A350 aircraft. Britain estimated that a GCC trade deal would contribute 1.6 billion pounds (USD 2.2 billion) a year to British economic output, or 0.06% of annual GDP. Prime Minister Keir Starmer travelled to Saudi Arabia and the UAE in 2024, as London aims for a quick conclusion of the trade deal.
Additionally, the United Kingdom’s “Export Finance Agency” will provide around 5 billion pounds in export credit to support British firms competing for contracts in Saudi Arabia. Several major UK-based companies, including Aberdeen Investcorp, Barclays, HSBC, and AI firm Quantexa, signed new agreements aimed at deepening their presence in the Gulf.
The FTA, once concluded, will strengthen strategic and economic ties between the UK and Gulf states, in addition to expanding trade in key sectors such as energy, manufacturing, and services. According to recent government statements, negotiators have made notable progress on areas including goods, services, and sustainability.