UK–Saudi deals: £6.4bn package and £5.1bn UKEF MoU

You’re hearing big numbers from Riyadh this week. Here’s what actually happened: the UK government announced a £6.4 billion bundle of trade and investment linked to a visit led by Chancellor Rachel Reeves to the Future Investment Initiative in Saudi Arabia in late October 2025. Central to that total is up to £5.1 billion of support from UK Export Finance through a refreshed memorandum of understanding with Saudi Arabia’s Public Investment Fund. Ministers say the package will open more orders for British suppliers, support jobs and keep capital flowing between the UK and the Gulf.

Let’s get the basics clear. UK Export Finance (UKEF) is the UK’s export credit agency. It helps UK companies sell abroad by insuring overseas orders, guaranteeing bank loans, or lending directly when private finance isn’t available on acceptable terms. This isn’t free money; it’s risk‑sharing. The buyer pays fees and interest, and the UK state steps in only when a deal meets strict tests on value for money, risk and responsible business.

A memorandum of understanding (MoU) is not a binding contract. It’s a statement of how two sides intend to work together. In this case, the UKEF–PIF MoU says up to £5.1 billion of export credit could be used when PIF and its portfolio companies purchase from UK‑based businesses. Each individual project still needs due diligence, including environmental, social and governance checks, before any finance is approved.

Alongside the MoU, a series of commercial moves were flagged. Barclays has set up a regional headquarters in Riyadh to support capital flows and advisory work. HSBC Saudi Arabia is relocating to the King Abdullah Financial District. Saudi cybersecurity firm Cipher plans to invest £37 million to establish its European office in London, while a consortium of Saudi investors and bankers is putting £75 million into Vemi, a UK digital bank. British data and AI company Quantexa is expanding its Decision Intelligence platform in the region, and UK cybersecurity firm Darktrace is opening a new office in Riyadh.

Infrastructure and energy featured too. Aberdeen Investcorp, a joint UK–Bahraini vehicle, is deepening Gulf investments: a commitment to Aramco’s Jafurah Gas Infrastructure project, a 40% stake in the Fadhili Housing Complex under a long‑term concession with Aramco, a 33% share in the £1.65 billion Mirfa Water System in the UAE, and majority participation in a £415 million expansion at Oman’s Port of Duqm. On climate tech, UK firm Levidian plans to work with Kanoo Energy on regional decarbonisation projects using its LOOP technology to create hydrogen and graphene from methane, with a pilot planned with Aramco.

Creative industries and construction get a look‑in. UKEF‑enabled financing at Six Flags Qiddiya City is expected to translate into over £90 million of export opportunities for UK firms in design, architecture, security and build services. For learners mapping supply chains, this is a clear example of how export credit can turn an overseas project into orders for UK‑based specialist companies.

Aviation and education were part of the story. According to the UK government, Riyadh Air opened a new route from Riyadh to London on 26 October, intended to strengthen business and tourism links. The University of Strathclyde will become the first European university with a physical presence in Saudi Arabia at Princess Nourah bint Abdulrahman University, broadening study options for its female student body, especially in business disciplines.

Why Riyadh, and why now? The Future Investment Initiative is a high‑profile gathering of investors and policymakers. The UK sent its largest delegation to date, pitching Britain as a stable place to invest and highlighting projects at home such as Heathrow’s planned expansion-Saudi Arabia’s Public Investment Fund took a 15% stake in Heathrow last year. The visit follows September’s UK–Saudi ‘Great Futures’ Summit in London, which the government says celebrated over £4.1 billion in deals and more than 4,100 UK jobs, taking two‑way trade and investment to above £10 billion in under 18 months.

What about a UK–GCC trade deal? The Chancellor met counterparts from Saudi Arabia and Qatar to push for progress with the Gulf Cooperation Council, a bloc that includes Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman. A GCC agreement would set common rules on tariffs, services, procurement and digital trade across the bloc. Government estimates suggest a deal could lift two‑way trade by around 16%, add £1.6 billion to UK GDP each year and increase UK wages by roughly £600 million in the long term. Those figures are modelling, not guarantees, and depend on the final text and how businesses use it.

So what might this mean for you? If you work in engineering, construction, creative design, digital security or data analytics, these announcements signal potential tender opportunities in the Gulf over the next few years. If you teach or study business, economics or politics, this is a live case study in how state‑backed finance, private investment and trade policy interact-and why timing, sector focus and credibility matter more than headlines.

It’s also important to weigh the trade‑offs. Export credit shifts some commercial risk onto the state; if an overseas buyer can’t pay, the taxpayer can be exposed. Projects must meet UKEF’s ethical and environmental standards, but scrutiny will be key-especially on labour rights, climate commitments and transparency. Big numbers in press releases often include pipelines and intentions, not just signed contracts, so we should track how much turns into purchase orders for UK firms.

Terms worth knowing as you read this news. Export credit: government‑backed insurance, guarantees or loans that make cross‑border deals bankable. Memorandum of understanding (MoU): a non‑binding framework for cooperation that needs follow‑on contracts to deliver real money. Murabaha: a form of Islamic finance where a financier buys an asset and sells it to the customer at a marked‑up price, paid over time; it avoids interest and is common in Gulf deals, including some UKEF‑supported structures.

What happens next? Watch for specific UKEF‑backed projects moving to approval, the publication of any procurement notices involving UK supply chains, and concrete milestones on a UK–GCC agreement. If you’re fact‑checking claims, three quick tests help: who benefits, who carries the risk, and where is the independent evidence? We’ll keep tracking how these commitments convert into jobs, skills development and exports over the coming months.