Saudi investment in the UK increases as its trade partnership deepens
22nd December, 2025
The Kingdom of Saudi Arabia has become one of the richest economies in the world through its vast oil reserves, but it is now in the process of pivoting into other markets such as tourism, entertainment, technology, and renewables in line with its Vision 2030 strategy.
This diversification has resulted in increased investment outside the Kingdom, including in the UK. In this article, Josh Cela explores the deepening UK-Saudi trade relationship and how the North East is positioned to secure inward investment.
Introduction
Saudi Arabia’s wealth was originally built on oil and gas reserves, but it is now increasingly driven by a diverse portfolio of large-scale investments. These investments are currently estimated to be worth $1.25 trillion, with the majority being made through the Public Investment Fund.
In 2016, HRH Mohammed bin Salman Al Saud, the Crown Prince and Prime Minister of the Kingdom of Saudi Arabia, developed the Vision 2030 strategy.
This strategy informs overseas investments, and aims to:
- enhance the Kingdom’s plans to be a global investment powerhouse (economic returns)
- diversify the economy beyond oil (develop and transform the Kingdom)
- connect the East and West (geo-political aims)
What does this mean for UK investment?
Fundamentally, it means the Kingdom is actively seeking opportunities to invest in the UK, provided those investments align with its strategic objectives.
One of the most high-profile Saudi investments in the UK to date is the 2021 acquisition of Newcastle United Football Club. By transforming NUFC from a relegation-threatened team into a team competing in the UEFA Champions League, the club’s value has increased significantly, and the Kingdom’s profile has risen alongside it.
The UK-Saudi relationship remains strong, as demonstrated by the UK Government’s October 2025 announcement that over £6.4 billion has been unlocked for trade and investment deals, and by the successful Great Futures summit in May 2024, which saw the UK’s largest-ever trade delegation travel to Riyadh to strengthen connections.
Is the North East of England well-positioned to secure Saudi investment?
In December 2024, the Mayor for the North East of England, Kim McGuiness, travelled with the Prime Minister, Sir Keir Starmer, to the Kingdom to hold trade talks, telling the press:
“I am determined we step forward to take these opportunities, working alongside the Prime Minister to bring home new investment. We are discussing ways to build on the Saudi investment there has already been in the North East, to create new jobs for local people and begin vital research into clean energy to be led by Newcastle University in our region.”
The Mayor’s presence highlights that the North East is actively targeting greater levels of Saudi investment, and there are reasons to be optimistic that such investment will come given that opportunities within the region appear well-aligned with the objectives of Vision 2030.
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Ripe for investment
The North East Combined Authority has recently published its Growth Plan covering the period 2025 to 2035. This plan identifies regional strengths, such as the creative industries, the digital technology sector, life sciences, and professional services, whilst also identifying key opportunities.
These opportunities include the AI Growth Zone in the north of the region, as well as large former industrial sites that can be transformed through investment. The up-front costs of investing in the North East of England can often be lower than in other parts of the country, which can, in turn, increase overall profitability.
Indeed, within Newcastle and Gateshead there are prime sites which are on the cusp of development. The North East Combined Authority is working to unlock construction projects on these sites through the creation of the Mayoral Development Zone.
The conditions are therefore ideal for investments that can be quickly undertaken, whilst also providing strong returns to investors.
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Next-generation opportunities
The North East of England is committed to being at the vanguard of developing markets, particularly those with high potential.
One such market is energy. Newcastle University is working alongside other universities, including those in Saudi Arabia, to establish an international Institute for Low Carbon Hydrogen.
The region is also near to Dogger Bank, located just off the north-east coastline, which is poised to be the world’s largest offshore wind farm. Once fully operational, Dogger Bank will power six million homes and support thousands of jobs.
Investment is also being made to position the region at the forefront of space technology. This can be seen through Northumbria University’s investment in a space technology laboratory and the NE Space Skills and Technology Centre.
Conclusion
Saudi investment is increasing, and the North East of England is particularly well-placed to benefit from this given the next-generation opportunities on offer and the strong potential for return on investment.
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