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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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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
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IMF Approves Third Review of Sri Lanka's $2.9 Bln Bailout

Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage
Peter Breuer, Senior Mission Chief for Sri Lanka at the IMF along with Katsiaryna Svirydzenka, Deputy Mission Chief for Sri Lanka at the IMF and Martha Tesfaye Woldemichael, Deputy Mission Chief for Sri Lanka at the IMF, attend a press conference organized by the International Monetary Fund (IMF) in Colombo, Sri Lanka, November 23, 2024. REUTERS/Thilina Kaluthotage

The International Monetary Fund (IMF) approved the third review of Sri Lanka's $2.9 billion bailout on Saturday but warned that the economy remains vulnerable.
In a statement, the global lender said it would release about $333 million, bringing total funding to around $1.3 billion, to the crisis-hit South Asian nation. It said signs of an economic recovery were emerging, Reuters reported.
In a note of caution, it said "the critical next steps are to complete the commercial debt restructuring, finalize bilateral agreements with official creditors along the lines of the accord with the Official Creditor Committee and implement the terms of the other agreements. This will help restore Sri Lanka's debt sustainability."
Cash-strapped Sri Lanka plunged into its worst financial crisis in more than seven decades in 2022 with a severe dollar shortage sending inflation soaring to 70%, its currency to record lows and its economy contracting by 7.3% during the worst of the fallout and by 2.3% last year.
"Maintaining macroeconomic stability and restoring debt sustainability are key to securing Sri Lanka's prosperity and require persevering with responsible fiscal policy," the IMF said.
The IMF bailout secured in March last year helped stabilize economic conditions. The rupee has risen 11.3% in recent months and inflation disappeared, with prices falling 0.8% last month.
The island nation's economy is expected to grow 4.4% this year, the first increase in three years, according to the World Bank.
However, Sri Lanka still needs to complete a $12.5 billion debt restructuring with bondholders, which President Anura Kumara Dissanayake aims to finalize in December.
Sri Lanka will enter into individual agreements with bilateral creditors including Japan, China and India needed to complete a $10 billion debt restructuring, Dissanayake said.
He won the presidency in September, and his leftist coalition won a record 159 seats in the 225-member parliament in a general election last week.