PIF And UK Export Finance Sign MoU To Enhance Trade With Up To £6.8 Billion For UK Companies In Saudi Arabia

The Public Investment Fund (PIF) and UK Export Finance (UKEF) have signed a memorandum of understanding (MoU) to enhance financial collaboration between the United Kingdom and Saudi Arabia. This agreement aims to boost trade and investment opportunities, with UKEF offering up to $6.8 billion in market cover within Saudi Arabia.

Through this MoU, UKEF will collaborate with PIF and its portfolio companies to explore current and future projects in Saudi Arabia. If these projects receive UKEF financing, they will create numerous supply contracts for UK-based suppliers. This initiative is expected to make it more appealing for companies within PIF’s network to source goods and services from UK contractors.

The agreement sets a framework for closer cooperation between PIF and UKEF, allowing both parties to share business insights and identify mutually beneficial opportunities. It aligns with PIF’s strategy to diversify funding sources through partnerships with reputable international institutions, providing its portfolio companies greater access to global markets as they expand domestically and internationally.

For UKEF, this partnership reinforces its role in supporting UK exporters' contributions to Saudi Arabia's Vision 2030 transformation. The agency has previously supported transactions like the $700 million Islamic Murabaha facility for Six Flags Qiddiya City, guaranteed by UKEF.

PIF’s Head of Global Capital Finance and Investment Strategy, Fahad AlSaif, stated: "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."

Tim Reid, CEO of UKEF, commented on the significance of the partnership: "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."

PIF's Global Impact

PIF is recognised as one of the world's most influential investors, playing a crucial role in developing key sectors that shape the global economy. It aims to deliver returns while driving Saudi Arabia's economic transformation. Moody’s rates PIF at Aa3 with a stable outlook, while Fitch assigns an A+ rating, also with a stable outlook.

This collaboration demonstrates the UK's commitment to supporting British exporters as they compete in one of the world's most dynamic markets while contributing to infrastructure development and innovation shaping Saudi Arabia's future.

With inputs from SPA