Mohamed Abdelmeguid, a Saudi Arabia analyst at the Economist Intelligence Unit (EIU), said he was sure new Saudi-U.K. commercial partnerships will be signed during the visit but noted that “Brexit creates a lot of uncertainty for foreign investors.” He added that this could be sufficient to derail planned investments before they reach execution level.
The planned initial public offering (IPO) of state oil giant Saudi Aramco (London is competing with New York to be the stock exchange where the company is listed overseas) is also expected to be discussed, the EIU’s Abdelmeguid said.
“London will be competing with other capitals over the forthcoming (Saudi Aramco) IPO so there is probably going to be some talk about the listing. He will need to announce something soon though, as we are already in March and Saudi officials had previously suggested the IPO was planned for mid-2018.”
The 32-year-old crown prince has made waves in Saudi Arabia for the economic and cultural reforms he has promoted since being named heir to the throne, the most notable reforms ranging from the much-vaunted “Vision 2030” to diversify the economy away from oil, to lifting a ban on cinemas and women driving in Saudi Arabia.
The U.K. government said Vision 2030 will provide opportunities for British businesses in sectors including education, entertainment and health care “where they have world-class expertise.”
“It also includes plans for Saudi Arabia to become a global investment powerhouse and the crown prince’s visit will help explore ways in which Saudi Arabia can build on its investment in the U.K. in sectors such as infrastructure,” the government added.
Aside from overseeing radical departures from tradition in the religiously conservative country, the heir to the Saudi kingdom also instigated a crackdown on corruption that saw ministers, businessmen and even fellow princes arrested and detained in 2017.
His youth and enthusiasm for reform work in his favor, in a country where the majority of the population is young and eager for work. Out of a total population of around 32.5 million people, the majority are in their mid-30s or younger, according to government data.
