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The Gulf is Britain’s fourth biggest trading partner and the City is supporting efforts to strengthen this vital relationship, says Alastair King
It was reported last week that the Prime Minister will soon visit Saudia Arabia and the United Arab Emirates, to strengthen economic ties and attract investment, while also discussing how we can achieve peace in the Middle East. Taken together, the Gulf Cooperation Council (GCC) – which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE – is the United Kingdom’s fourth largest trading partner, after the EU, the USA and China. Our annual trade with the group is worth £57bn. The GCC and the UK are currently negotiating a free trade agreement, which estimates suggest could boost trade by 16 per cent and add £1.7bn to the UK economy.
The City of London is pleased to be supporting these efforts to strengthen this vital relationship, building on the already strong connections between the City and the Gulf. My first overseas visit as Lord Mayor is to Saudi Arabia, Bahrain and Kuwait, discussing how the City of London can be a gateway for further investment into the United Kingdom, in line with my mayoral priority of growth unleashed for the whole country. We also look forward to supporting the state visit of the Amir of Qatar to the UK next month. We are urging the trade negotiators to follow the recommendations of the UK-GCC Joint Trade and Investment Review, and make swift progress on market access in professional, business and financial services. This will offer huge opportunities for British firms. As well as British tourists, we need to see even more British businesses heading to the Gulf to expand.
While I am in the Gulf this week, I will meet government ministers as well as senior business leaders in the region’s financial and professional service community, to explore how we can deepen our partnership with the Gulf in financial services. Mine will be a high energy Mayoralty in my role as the cheerleader-in-chief for the UK’s financial and professional services sector. The UK and London’s expertise in fintech, green finance and insurance make it a natural partner of choice for Gulf, offering huge possibilities for closer collaboration in services to help the Gulf states achieve their objectives of a diversified economy, financial inclusion and sustainable development.
London is the preferred destination for Gulf companies
We are building on an already strong position. The London Stock Exchange continues to be the preferred destination for Gulf companies looking to access international capital markets, and has been a key partner to the Middle East in its efforts to integrate the region’s domestic capital markets and economies with the world’s. It is currently the number one exchange for Gulf companies seeking to list equity internationally, having hosted more IPOs from the region than any other stock exchange globally. More than three quarters of the Middle East’s debt issuers are listed on the London Stock Exchange, which is also the leading international sukuk (Islamic finance bond) financier. More than sixty sukuk have been issued on London’s markets, raising over £40bn.
British innovation in green and digital offers huge opportunities for further collaboration with Gulf investors, who already make a huge contribution to the UK economy. Our position at the crossroads of Europe’s biggest financial and tech sectors makes us one of the globe’s foremost hubs for innovation – with one of the world’s most exciting fintech sectors, and recently ranked top for the quality of its green finance offer. I especially look forward to engaging with the Gulf’s emerging fintech and green finance clusters, which look to the ecosystem of innovation we have in London.
Building on our strong historic ties and record of success, our allies in the Gulf are essential partners for unlocking new flows of investment which can unleash growth at home in the UK.
Alastair King is Lord Mayor of the City of London
