Saudi Arabia’s Public Investment Fund (PIF) and the United Kingdom’s credit agency, UK Exporsent Finance (UKEF) have signed a memorandum of understanding (MOU) to open up to $6.8bn in market capitalization to support new commercial and investment projects.
The agreement aims to deepen financial cooperation between the two countries and increase access to corporate-backed financing for PIF companies.
It will allow Ukef to work directly with PIF and its portfolio companies on existing and existing projects which, if funded under this framework, would generate large supply contracts for UK retailers.
Saudi-UK Trade
The MOU also creates a framework for close cooperation between PIF and Ukef, enabling both organizations to share expertise and identify profitable investment opportunities.
The MOU reinforces Pif’s strategy to diversify funding sources in partnership with leading financial institutions.
It will also improve access to major global markets for PIF portfolio companies as they continue to grow both domestically and internationally.
In the UK, the move underlines Ukeef’s growing role in supporting British merchants as they contribute to the transformation of Saudi Arabia – The building in the previous rooms is similar to the $700M Islamic Murabaha City, which is Ukef confirmed.
Fahad Alsaif, PIF’s head of Global Capital finance and investment strategy and economic insight, said: “This shows PIF’s strong partnership to achieve financial growth around the world.
UK retailers
Tim Reid, CEO of finance at UK Ex Export, said: “Saudi Arabia’s program is an outstanding economic opportunity for British businesses. With this global signal we will provide important agreements for the supply of nations.
“This partnership demonstrates the UK’s commitment to supporting British retailers as they compete and win in one of the world’s most dynamic markets, while helping to deliver the infrastructure and innovation that will shape the future of Saudi Arabia.”
Country investment
The MOU comes as both countries engage in trade, infrastructure, and clean energy cooperation in line with the divisive Vision 2030 agenda.
It highlights how the Saudi Arabian capital of Saudi Arabia continues to build relationships with international institutions to consolidate the social capital of the countries of the economy and drive sustainable economic reform.
PIF – One of the largest royal investors in the world – holds an AA3 rating with a stable outlook from Moody’s and A + for its stable rating from hidden, strong institutional reliability and institutional credibility.
With Ukef’s financial cover and PIF’s investment, both of these things are expected to point to pipelines of back-end projects to be built that will increase US participation in Saudi Giga projects and infrastructure development in the coming years.
