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UK Officials to Asharq Al-Awsat: Talks Underway to Speed Up Gulf Trade Deal

Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)
Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)
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UK Officials to Asharq Al-Awsat: Talks Underway to Speed Up Gulf Trade Deal

Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)
Meeting of the Trade Minister and Chair of the Economic and Social Committee of the Saudi-British Strategic Partnership Council with the UK Minister of State for Business and Trade in Riyadh (SPA)

British officials have highlighted that recent Saudi reforms have boosted trade and investment between the two countries, opening new opportunities for cooperation. A senior British official revealed that British and Gulf negotiators are working to speed up a free trade agreement.
UK Secretary of State for Business and Trade Jonathan Reynolds told Asharq Al-Awsat that British negotiators are in talks with their Gulf counterparts, and that they hope to resume negotiations soon.
Reynolds emphasized the importance of the free trade agreement with the Gulf Cooperation Council (GCC), noting that finalizing the deal is a top priority for the UK.
Reynolds added that the UK aims to achieve a beneficial deal for both sides rather than focusing on a specific deadline. The timing will depend on how quickly it can be finalized, considering the necessary government processes.
On Saudi-British relations, Reynolds said the two Kingdoms enjoy a close diplomatic, military, and security relationship, and that their economic and trade ties are growing stronger.
He noted that the UK is eager to work on several future projects with Saudi Arabia.
Reynolds also mentioned that the Saudi-British partnership has recently been expanded and updated in many areas.
UK Minister of State for Trade Policy and Economic Security, Douglas Alexander, told Asharq Al-Awsat about the British Parliament’s plan to enhance trade and investment with Saudi Arabia.
While he affirmed that the UK already has a strong trade and investment relationship with Saudi Arabia, Alexander noted that a new free trade agreement could make trade faster, cheaper, and easier, creating jobs and boosting prosperity for both nations.
This deal could support Saudi Arabia’s Vision 2030 and help the UK’s clean energy goals, he asserted.

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Fitch Revises Italy's Outlook to 'Positive' on Stronger Fiscal Performance

Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
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Fitch Revises Italy's Outlook to 'Positive' on Stronger Fiscal Performance

Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights
Porta Nuova's financial district is seen in downtown Milan, Italy, May 16, 2018. REUTERS/Stefano Rellandini/File Photo Purchase Licensing Rights

Global credit ratings agency Fitch on Friday revised its outlook on Italy to 'positive' from 'stable', citing recent improvements in the fiscal performance of the euro zone's third largest economy and its commitment to EU budget regulations.
The upgrade to the outlook is a boost to Prime Minister Giorgia Meloni's government and comes shortly after Rome reached an agreement with the European Commission on a seven-year budget adjustment, said Reuters.
"Italy's fiscal credibility has increased, and the 2025 budget underscores the government's commitment to EU fiscal rules," Fitch said in a statement.
The agency confirmed Italy's rating at 'BBB'.
In June, the Commission placed Italy and six other countries under a disciplinary procedure due to high budget deficits. Italy's 2023 shortfall came in at 7.2% of gross domestic product, the highest in the 20-nation euro zone.
However, last month the Italian government revised down its targets for the deficit this year and next, to 3.8% and 3.3% of GDP respectively, and said the deficit would fall below the EU’s 3% limit in 2026.
"The judgments of the ratings agencies are the result of the responsible actions of this government and they underscore Italy's credibility," Economy Minister Giancarlo Giorgetti said in a statement after Fitch's announcement.
Earlier on Friday, S&P Global confirmed its rating on Italy at 'BBB' and left the outlook at 'stable'.
RISING DEBT
Despite the narrowing annual budget deficits, Italy's debt, proportionally the second highest in the euro zone, is forecast by the government to climb from 134.8% of gross domestic product last year to 137.8% in 2026, before gradually declining.
The Treasury says the projected increase is due to costly home renovation incentives adopted during the COVID-19 pandemic, known as the Superbonus scheme.
The premium investors pay to hold Italian government bonds over top-rated German ones narrowed on Friday to around 116 basis points, the lowest level since end-2021.
Analysts said earlier this week that positive news from any of the ratings agencies due to review Italy could trigger a further narrowing of the yield spread against Germany.
Fitch said its revision to Italy's outlook was also driven by "signs of stronger potential growth and a more stable political context."
The Italian economy expanded by 0.7% in 2023, and most analysts expect a similar modest growth rate this year, slightly below the government's official 1% target.
Meloni, who took office two years ago, retains high approval ratings and opinion polls show her right-wing Brothers of Italy party is comfortably the largest in Italy, with popular support of almost 30%, up from the 26% it won at the 2022 election.
Italy faces further credit rating reviews by Moody's, DBRS and Scope Ratings over the next few weeks up to No. 29.