Riyadh: The Public Investment Fund (PIF) and UK Export Finance (UKEF), the United Kingdom's export credit agency, have signed a memorandum of understanding (MoU) to strengthen financial cooperation and expand trade and investment opportunities between the UK and the Kingdom of Saudi Arabia.
According to Saudi Press Agency, UKEF has a total market cover of up to $6.8 billion in Saudi Arabia. Through this MoU, the agency will partner with PIF and its portfolio companies to access a pipeline of existing and prospective projects in the Kingdom that, if backed with UKEF financing, will offer numerous supply contracts for UK-based suppliers. The agreement will make it more attractive for companies within PIF's ecosystem to procure goods and services from UK contractors.
The MoU also establishes a framework for closer cooperation between PIF and UKEF that will see both sides share business experience and knowledge and work together to identify mutually beneficial opportunities.
The MoU underlines PIF's strategy to diversify funding sources through strong partnerships with reputable and leading international institutions, while providing its portfolio companies with greater access to global markets as these companies continue to grow domestically and internationally and attract capital globally.
For UKEF, the agreement reinforces its role in supporting UK exporters' contribution to Saudi Arabia's Vision 2030 transformation, building on transactions such as the $700 million Islamic Murabaha facility for Six Flags Qiddiya City, which was guaranteed by UKEF.
PIF's Head of Global Capital Finance and Investment Strategy and Economic Insights Fahad AlSaif commented on the collaboration's impact on accessing international capital and expertise for transformative projects in line with Vision 2030.
UKEF CEO Tim Reid highlighted the economic opportunities presented by Saudi Arabia's Vision 2030 program and the significance of the partnership in creating valuable new supply contracts and driving economic growth across both nations.
PIF is recognized as one of the world's most impactful investors, developing key sectors and opportunities that shape the global economy. It is rated Aa3 by Moody's with a stable outlook and A+ by Fitch, also with a stable outlook.