- Signing took place in the presence of Rachel Reeves, UK Chancellor of the Exchequer, who attended the ninth edition of the Future Investment Initiative in Riyadh
- MoU builds on PIF’s strong relationships with global financial institutions and export credit agencies
Riyadh – PIF and UK Export Finance (UKEF), the United Kingdom’s export credit agency, have signed a memorandum of understanding (MoU) to strengthen financial cooperation and expand trade and investment opportunities between the UK and Saudi Arabia.
UKEF has a total market cover of up to $6.8bn in Saudi Arabia. Through this MoU, the agency will partner with PIF and its portfolio companies to access a pipeline of existing and prospective projects in the country that, if backed with UKEF financing, will offer numerous supply contracts for UK-based suppliers. The agreement will make it more attractive for companies in PIF’s ecosystem to procure goods and services from UK contractors.
The MoU also establishes a framework for closer cooperation between PIF and UKEF, that would see them share business experience and knowledge and work together to identify mutually beneficial opportunities.
The MoU underlines PIF’s strategy to diversifying funding sources through strong partnerships with reputable and leading international institutions, while providing its portfolio companies with greater access to global markets as these companies continue to grow domestically and globally and attract capital globally.
For UKEF, the move reinforces its role in supporting UK exporters’ contribution to Saudi Arabia’s 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, said: “This MoU reflects PIF’s strong partnerships with a wide group of leading global financial institutions. 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.”
UKEF CEO Tim Reid said: “Saudi Arabia’s ambitious Vision 2030 programme 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. This partnership demonstrates the UK’s commitment to supporting British exporters as they compete and win in one of the world’s most dynamic markets, while helping to deliver the infrastructure and innovation that will shape Saudi Arabia’s future.”
PIF is one of the world’s most impactful investors, further developing key sectors and opportunities that shape the global economy, deliver returns, and drive the economic transformation of Saudi Arabia. PIF is rated Aa3 by Moody’s with a stable outlook, and A+ by Fitch, also with a stable outlook.
About UKEF
UK Export Finance (UKEF) is the United Kingdom’s export credit agency. UKEF helps exporters access working capital and manage the risk of not getting paid by offering a government guarantee. Over the last financial year, UKEF provided a record £14.5 billion in new financing, helping over 667 UK companies to export and grow and has supported up to 70,000 jobs.
ABOUT PIF
PIF is one of the world’s most impactful investors, enabling the creation of key sectors and opportunities that help shape the global economy, deliver returns and drive the economic transformation of Saudi Arabia, supporting the delivery of Vision 2030. PIF invests in projects, companies and partners to diversify the Saudi economy, stimulate growth in every major sector, and create new opportunities for investment and employment.
And as a global investor and catalyst of change, PIF actively partners with the most pioneering organizations across the world to accelerate their growth, and transfer the technology and knowledge needed to build industry ecosystems of the future.
Since 2017, PIF has been establishing companies and driving the transition to a more sustainable economy through strategic investments and partnerships across the Saudi public and private sector. PIF is laying the foundations for local and international partners to invest in the economic and societal transformation of Saudi Arabia.
