Starmer must view Saudi ties as personal, not just business

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British Prime Minister Keir Starmer’s visit to Ƶ should herald a step forward in the trading and business relationship between the two countries. Even historic relationships need renewal and updating. Fresh commercial ties will be welcomed by both governments, which will no doubt look to build on them. Bilateral trade has reached record levels, topping £17.3 billion ($22 billion).

The UK’s Labour government has a tough economic horizon. Even though the British economy is still strong, the sixth-largest in the world, like others it is struggling. Yet, even post-Brexit, it has much going for it and the country remains attractive for foreign direct investment.

But Starmer and Rachel Reeves, his chancellor of the exchequer — what we in Britain call our finance minister — have staked their political futures on growth because, given the tight finances, growing the economy will be the only way the government will be able to escape the tight constraints it has imposed on itself. It is why the UK is keen to close a free trade agreement with the Gulf Cooperation Council.

Boosting economic ties with the Arab world’s largest economy will be appealing. The two governments have  a target of boosting bilateral trade to £30 billion by 2030, a significant but achievable challenge.

This is why Starmer, who was elected in July, made this visit so early in his tenure. His government needs some positive outcomes. It has not found its first five months in power easy. The UK is continuing a year-long drive to boost trade that started in the spring, with a special focus on the sectors essential to Ƶ’s Vision 2030.

Even post-Brexit, the UK has much going for it and the country remains attractive for foreign direct investment

Chris Doyle

One aspect is the British attempt to engage Saudi business in artificial intelligence. For example, Northumbria University and King Fahd University of Petroleum and Minerals in Ƶ are  together on how to deploy AI to help make the construction industry greener. Both countries need to reduce the impact of this sector on the environment.

Ƶ’s direct investment in the UK since 2017  at about $21 billion. Already, the Kingdom’s investments in the northeast of England have been heralded as a major boost to the economy in an area long seen as deprived. This was announced close to the end of the last British government during the two-day UK-Saudi summit in May. The £3 billion Ƶn investment should create about 2,000 jobs. This is centered on Newcastle, a city whose football club is now owned by the Public Investment Fund. The city is being billed as the “the gateway to Saudi.” There are also Ƶn investments in chemical plants in the northeast.

Other major Saudi investments in the UK include a 40 percent stake in the famous central London department store Selfridges. The UK has some strong, secure brands that states like Ƶ like to invest in.

Starmer will be hoping to encourage further Saudi investment in both the renewable and nuclear energy sectors in the UK.

Starmer has not had great exposure to the Arab world, so any visit like this will be a huge learning curve

Chris Doyle

But the UK is also the second-largest foreign investor in Ƶ. It has £16 billion in share investment. Some 52 UK companies have set up regional headquarters in Riyadh alone. Many companies will be attracted by a host of sectors in Ƶ, not least energy, the environment and tourism.

Could this relationship flourish? Yes, but, as with any relationship, it needs nurturing and requires genuine input. Mutual respect is vital. Starmer will have to listen to his hosts’ concerns as well as their ambitions. He would do well to explore the changes in Ƶ and consider that it is no longer a case of UK-Saudi relations being restricted to oil and defense interests, with a much wider array of opportunities. He should look at how women have become a greater part of the workforce, how the country is opening up and how tourism and cultural projects have boomed.

In the education sector, five British independent schools have established branches in Ƶ. The University of Strathclyde is set to become the first British higher education institution to have a presence in the Kingdom. Yet perhaps one of the most telling features is the fact that there are more than 14,000 Saudi students studying at UK universities.

If Starmer truly wishes to boost the trading part of the UK-Saudi relationship, then he and his colleagues have to establish closer personal ties. It is something that British businesspeople over the years have had to learn: that long-term ties built on personal dynamics make progress. The prime minister will have to cast aside the domestic carping that he has been traveling too much since taking office. This matters if he wishes to promote UK business interests.

Starmer has not had great exposure to the Arab world, so any visit like this will be a huge learning curve. British politicians and others can come across as distant in contrast to their Arab counterparts. If they are to flourish in this market, Starmer and his team must see things through a long-term lens and as a relationship that is personal, not just commercial.

  • Chris Doyle is director of the Council for Arab-British Understanding in London. X: @Doylech