Riyadh - Mubasher: The Saudi Public Investment Fund (PIF) and UK Export Finance (UKEF) have signed a memorandum of understanding (MoU) to boost financial cooperation and expand trade and investment opportunities between the two countries.
Under the partnership, the agency will partner with PIF and its portfolio companies to access a pipeline of existing and prospective projects in the Kingdom, according to a press release.
UKEF has a total market cover of up to $6.80 billion in Saudi Arabia, which will offer numerous supply contracts for UK-based suppliers.
Meanwhile, the agreement will make it more attractive for companies in PIF’s ecosystem to procure goods and services from UK contractors.
It also establishes a framework for closer cooperation between PIF and UKEF, which would see them share business experience and knowledge and join forces to identify mutually beneficial opportunities.
The MoU aligns with the Saudi fund’s strategy to diversify funding sources through strong partnerships with reputable and leading international institutions. This is in addition to providing its portfolio companies with greater access to international markets as these companies continue to grow and attract capital globally.
As for UKEF, the move anchors its role in supporting UK exporters’ contribution to Saudi Vision 2030 transformation, building on transactions such as the $700 million Islamic Murabaha facility for Six Flags Qiddiya City, which was guaranteed by UKEF.
Fahad AlSaif, PIF’s Head of Global Capital Finance and Investment Strategy and Economic Insights, commented: “This collaboration will further enable our portfolio companies to access international capital and expertise and deliver transformative projects that contribute to sustainable economic growth in line with Vision 2030.”
Tim Reid, CEO of UKEF, noted: “Saudi Arabia's ambitious Vision 2030 program presents significant economic opportunities for British businesses. Through this landmark signing, we are not just opening doors – we are creating a gateway that will provide valuable new supply contracts, driving substantial economic growth across both our nations.”
Last September, the Saudi PIF acquired a 54% stake in MBC Group in exchange for SAR 7.46 billion.
