Rachel Reeves spearheads UK Gulf trade drive amid rights scrutiny

Rachel Reeves, the Chancellor, is set to lead a high-profile delegation of senior British business figures to Saudi Arabia, seeking to bolster economic ties with a region that remains under intense international scrutiny for its human rights record. Her visit marks the first by a UK chancellor to the Gulf in six years, underscoring the government’s intent to deepen engagement with the Gulf Cooperation Council (GCC), which encompasses Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates.

The government is currently striving to secure a trade agreement with the GCC, a deal officials estimate could contribute £1.6 billion annually to the UK economy and raise UK workers’ pay by £600 million in the long term. Reeves emphasised the government’s commitment to economic growth, highlighting Britain’s stability, regulatory agility, and expertise as persuasive arguments for UK investment. She stated, “Our number one priority is growth, so I am taking Britain’s offer directly to one of the world’s most important trade and investment hubs, making that case in our national interest.”

Her visit will include high-level meetings with senior Saudi royals, executives from the US administration, and global business leaders. Reeves will also address the Fortune Global Forum in Riyadh and the Future Investment Initiative, often called Davos in the Desert, to promote the UK as a leading investment destination amidst global uncertainty. High-level UK business leaders accompanying Reeves include Barclays CEO CS Venkatakrishnan, GSK chair Sir Jonathan Symonds, HSBC chief executive Georges Elhedery and Julia Hoggett of the London Stock Exchange.

Trade with the Gulf region currently totals around £59 billion annually, making it Britain’s seventh-largest export market. The proposed deal with the GCC would boost total trade by an estimated 16 per cent. The Gulf’s sovereign wealth funds, notably from Saudi Arabia and the UAE, rank among the UK’s most substantial foreign investors, exemplified by the Saudi Public Investment Fund acquiring a 15 per cent holding in Heathrow airport last year.

Yet, the prospect of enhanced UK-Gulf cooperation has prompted concern among campaigners and trade unions. The Trades Union Congress continues to urge the government to exclude countries with poor human rights and workers’ rights records from trade deals, reiterating the importance of upholding international law. Reeves, sensitive to these concerns, is expected to acknowledge ongoing areas of divergence and cultural differences while seeking to finalise major UK-Saudi investments ahead of the upcoming national budget.

Labour’s engagement strategy with Saudi Arabia signals a pragmatic approach to driving economic growth and securing inward investment. Stockwood, the minister for investment, stressed that multiplying economic links with the region will open export channels and shore up growth throughout the United Kingdom.