United Kingdom
UK ranks at #8 in terms of FDI contribution towards Saudi Arabia. This does reflect UK’s strength as global FDI outflow contributor.
The strength of the Saudi economy and the prospect of continuing high oil prices- among other factors- offer huge opportunities across a broad spectrum for British companies. Relations between Saudi Arabia and Britain are excellent. There is a large British business community working in the Kingdom and Saudis generally hold British people in high regard.
Around 20,000 British citizens now live and work in the Kingdom. A further 25,000 people per year perform the annual Hajj pilgrimage, while as many as 100,000 visitors from Britain undertake the lesser pilgrimage of Umrah. On the other hand, Saudis continue to visit Britain in increasing numbers – predominantly as tourists. As of October 2007, the annual total of UK visas issued to Saudi citizens reached 31,000 – a 55% increase since 2004. Over the same period, the number of Saudis who are studying in Britain increased by 50% to 3,000. This can only be a positive factor.
Bilateral trade depends on strong interpersonal relationships; and the current healthy state of Saudi-British trade has emerged from a shared history of cultural understanding.
Trade and economic relationships between Saudi Arabia and the United Kingdom:
The Kingdom of Saudi Arabia and the UK have a long-standing trade relationship. Saudi Arabia is the UK’s 23rd largest export market. It is the UK’s largest trading partner in the Middle East. The UK is Saudi Arabia's second largest foreign investor after the USA.
Much of the growth in Saudi exports to the UK over the last two decades has been in the non-oil sector. Compared to 1984 when only 25% of Saudi exports to the UK were in the non-oil sector, 20 years later this figure had risen to almost 84%. This increase was helped largely by an enormous increase in the amount of machinery and transport equipment and general manufactured articles. British investors see the Capital Markets Law and recent signing of the EU/Saudi Trade Agreement as significant steps by the Saudi government in providing greater predictability and certainty for investors in the Kingdom.
Joint ventures and investments:
There are more than 150 joint ventures between British and Saudi Companies and some 30,000 British nationals are living and working in Saudi Arabia. In December 2003, it was revealed by Sir David Gore-Booth, the special adviser to the chairman of HSBC Holdings, that HSBC and SABB (the Saudi British Bank) were planning to establish a joint bank. Mr Gore-Booth added that the new bank would invest in local infrastructure projects based on the Saudi Arabian Capital Market Law, which enables foreign investment banks to operate in Saudi Arabia.
List of top companies who are investing in KSA:
- SAAB (HSBC GROUP)
- United Sugar co.
- Middle East Brobulsion co. LTD
- National Factory for Can Ends LTD. "NAFCEL"
- GLAXO Saudi Arabian CO.LTD
- International Paint LTD
- Synthomer Middle East CO.(DHAHRAN HARCO)
- Saudi Masterbraker LTD
- Saudi MBT For Building Materials co.LTD
- International Paint Saudi Arabia Company
- MK Cable Management (SA).LTD
- Bupa Arabian Company
Success stories:
The establishment of the £100 million United Sugar Company Refinery in Jeddah, a joint venture between Tate & Lyle, the Savola Group and other Saudi partners. The sugar refinery, which was the Kingdom's first, has now expanded to become one of the largest of its kind in the world, and will soon be producing one million tons per year of high quality white sugar. This will meet almost 100% of home demand and allow for export to other Gulf and Arab markets.
Contact information:
The Royal Embassy of Saudi Arabia, Mayfair.
London, UK
+44 (0) 207 917 3000
sbouzo@sagia.gov.sa