Lord Mayor of London: Intense Efforts Underway to Deepen Partnerships between Saudi Arabia, UK

Lord Mayor of London Michael Mainelli revealed that intense efforts are underway to maximize fintech, green financing, AI, space and cyberspace partnerships with Saudi Arabia.

He added that the UK and Saudi Arabia are important trade partners. “The UK is Saudi Arabia’s largest trading partner in Europe,” he told Asharq Al-Awsat in an interview on the sidelines of his participation at the special meeting of the World Economic Forum in Riyadh last week.

“By working together, British expertise and innovation in sustainable finance can help the Saudi financial services sector to unlock the huge opportunities offered by the green transition,” he remarked.

“One of the major projects we have coming up with Saudi Arabia is the UK-Saudi Sustainable Infrastructure Summit taking place at Mansion House in London on the 24 June in partnership with the Saudi British Joint Business Council (SBJBC UK),” he revealed.

Greatest trade partner

Moreover, Mainelli said: “The UK and Saudi Arabia are important trade partners. The UK is Saudi Arabia’s largest trading partner in Europe with trade worth £17.4 billion (SAR 82 billion). Meanwhile the Gulf Cooperation Council (GCC) is the UK’s fourth largest trading partner with trade worth £65 billion (AR 305 billion). While Saudi investment in the UK is estimated to be worth up to £65 billion (SAR 305 billion).”

“We welcome the ongoing free-trade negotiations between the GCC and the UK and we hope it follows the recommendations of the UK-GCC Joint Trade and Investment Review, which called for swift progress on market access in professional, business and financial services,” he went on to say.

On the importance of the Davos Riyadh Forum and to what extent there will be new opportunities for bilateral, regional and global cooperation in providing clean energy, he said: “The World Economic Forum in Riyadh was an opportunity for Saudi Arabia to showcase the extraordinary progress they’ve made in diversifying their economy away from oil and gas as part of their ambitious Vision 2030.”

“It's great that Saudi Arabia is looking really deep into its future, and I applaud that. I think where Saudi Arabia is headed in hydrogen technology has great potential, as well as in the fields of biology and healthcare,” stressed Mainelli.

“One of the best things about Vision 2030 is the creation of good intellectual jobs for the Saudi people. It is an uplifting vision of what a nation of 40 million can achieve,” he said.

“The UK and London’s expertise in fintech, green finance and insurance make it a natural partner of choice to help Saudi Arabia achieve its Vison 2030 objectives of a diversified economy, financial inclusion and sustainable development.”

“As the UK’s international ambassador for financial and professional services I’m here in the Kingdom to meet with Saudi Arabia’s emerging fintech and green finance clusters, as well as AI and space companies. I will also be holding bilateral meetings with ministers from the finance ministry and investment ministry to discuss how best to deepen our partnership with Saudi Arabia in financial services, notably insurance, banking, digital, green finance, cybersecurity and fintech,” he revealed.

Twinning between London, Riyadh

On the trend towards twinning between London and Riyadh and the most important cooperation projects proposed for both parties, he noted that the UK-Saudi Sustainable Infrastructure Summit in June is one of the major projects coming up with Saudi Arabia.

“The summit will convene up to 200 high-level participants, including policymakers, industry leaders, and financial professionals from the UK and Saudi Arabia, alongside international attendees. It will focus on facilitating knowledge exchange between the UK and Saudi Arabia, with an ambition on deepening existing bilateral partnerships,” said Mainelli.

“In addition, it will encourage more UK financial and professional firms to become proactive partners in offering their skills, products, expertise and capital to help Saudi Arabia reach their sustainable infrastructure ambitions as outlined in Vision 2030. It also demonstrates the importance of creating partnerships and meaningful long-term collaboration between the two Kingdoms.”

“The topics of the summit include: The importance of UK-Saudi Collaboration in Sustainable Infrastructure Development and Advancing the Green Transition; Financing Sustainable Infrastructure: Bridging the investment gap, and the role of public-private partnerships and innovative financing models; Urbanization and Sustainable City Development: Giga Projects and smart urban planning; Green Technology and Renewable Energy Initiatives: Scaling green technologies and promoting innovation,” he revealed.

Mainelli added: “Saudi Arabia is a country at the heart of economic transformation and sustainable development through its economic diversification plan, Vision 2030. With the UK a world leader in sustainable finance, I’m confident that the summit will create solutions and set a template for the rest of the world to follow.”

Telecommunications companies listed on the Saudi Stock Exchange (Tadawul) achieved a 12.46 percent growth in their net profits, which reached SAR 4.07 billion ($1.09 billion) during the second quarter of 2024, compared to SAR 3.62 billion ($965 million) during the same period last year.

They also recorded a 4.76 percent growth in revenues during the same quarter, after achieving sales worth more than SAR 26.18 billion ($7 billion), compared to SAR 24.99 billion ($6.66 billion) in the same quarter of 2023.

The growth in the revenues and net profitability is the result of several factors, including the increase in sales volume and revenues, especially in the business sector and fifth generation services, as well as the decrease in operating expenses and the focus on improving operational efficiency, controlling costs, and moving towards investment in infrastructure.

The sector comprises four companies, three of which conclude their fiscal year in December: Saudi Telecom Company (STC), Mobily, and Zain Saudi Arabia. The fiscal year of Etihad Atheeb Telecommunications Company (GO) ends on March 31.

According to its financial results announced on Tadawul, Etihad Etisalat Company (Mobily) achieved a 33 percent growth rate of profits, bringing its profits to SAR 661 million by the end of the second quarter of 2024, compared to SAR 497 million during the same period in 2023. The company also achieved a 4.59 percent growth in revenues to reach SAR 4.47 billion, compared to SAR 4.27 billion in the same quarter of last year.

The Saudi Telecom Company achieved the highest net profits among the sector’s companies, at about SAR 3.304 billion in the second quarter of 2024, compared to SAR 3.008 billion in the same quarter of 2023. The company registered a growth of 4.52 percent in revenues.

On the other hand, the revenues of the Saudi Mobile Telecommunications Company (Zain Saudi Arabia) increased by about 6.69 percent, as it recorded SAR 2.55 billion during the second quarter of 2024, compared to SAR 2.39 billion in the same period last year.

Commenting on the quarterly results of the sector’s companies, and the varying net profits, the head of asset management at Rassanah Capital, Thamer Al-Saeed, told Asharq Al-Awsat that the Saudi Telecom Company remains the sector leader in terms of customer base expansion.

He also noted the continued efforts of Mobily and Zain to offer many diverse products and other services.

Financial advisor at the Arab Trader Mohammed Al-Maymouni said the financial results of telecom sector companies have maintained a steady growth, up to 12 percent, adding that Mobily witnessed strong progress compared to the rest of the companies, despite the great competition which affected its revenues.

He added that Zain was moving at a good pace and its revenues have improved during the second quarter of 2024. However, its profits were affected by an increase in the financing cost by SAR 26.5 million riyals and a rise in interest, while net income declined significantly compared to the previous year, during which the company made exceptional returns.

Lord Mayor of London: Intense Efforts Underway to Deepen Partnerships between Saudi Arabia, UK