UK Export Finance (UKEF) has signed a Memorandum of Understanding with Saudi Arabia’s Public Investment Fund (PIF), announced on 28 October 2025 during the Future Investment Initiative in Riyadh. The signing was attended by the Chancellor, Rachel Reeves, and the Minister for Investment, Lord Stockwood. The MoU is intended to broaden procurement opportunities for UK companies on PIF-backed projects in the Kingdom.
The agreement creates a framework for UKEF and PIF to share pipeline information and coordinate on prospective transactions, aiming to route PIF and portfolio-company procurement towards UK goods and services. UKEF’s published market risk appetite for Saudi Arabia is £4–5 billion, with short-term and medium-to-long-term cover available and local currency options where appropriate. Any use of UKEF support remains subject to standard underwriting.
For large projects, UKEF’s Buyer Credit Facility provides a guarantee to a lender financing an overseas buyer’s purchase of UK-sourced goods and services. It typically covers up to 85% of contract value, can be offered in more than 60 currencies, and for high values may be combined with UKEF’s Direct Lending Facility to complete the financing plan.
For mid-sized procurements, the Standard Buyer Loan Guarantee covers a bank loan to the buyer-again up to 85% of the contract value, with a 15% down payment. UKEF generally expects supported contracts to contain at least 20% UK content, which exporters should evidence at bid stage and maintain through delivery.
Country cover guidance makes clear that the market risk appetite is an upper bound for new exposure rather than a commitment to support; decisions are taken case by case and may, for foreign exchange‑earning projects with robust structures, exceed the headline band. UKEF’s 2024–25 Annual Report indicates the agency operated within its portfolio risk and reserve indices, suggesting capacity to take on additional exposure as suitable transactions are brought forward.
Financing will continue to be screened against UKEF’s environmental, social and human rights policy. The agency states that it aligns with the OECD Common Approaches and the Equator Principles (EP4), benchmarking Category A and B projects against IFC Performance Standards and monitoring performance post‑issue. Exporters should expect human rights risk screening and evidence of mitigation as part of underwriting.
Saudi Arabia is already a significant market for UK services. Department for Business and Trade data show total UK–Saudi trade at £17.2 billion in 2023 and £16.1 billion in 2024, with technical and other business services the largest services export category in the year to Q1 2025.
PIF’s portfolio spans sectors central to Vision 2030, including aviation, real estate and large‑scale infrastructure, indicating potential demand for UK expertise in engineering, transport systems, digital infrastructure and professional services. PIF lists assets such as Riyadh Air and King Abdullah Financial District among its holdings.
For UK suppliers and lenders, practical steps include early engagement with UKEF and relationship banks, mapping a compliant UK‑content plan, and preparing environmental and social documentation aligned to IFC Performance Standards. UKEF’s assessment process covers anti‑bribery, sanctions and social impacts; tools such as the Premium Indicator can support pricing discussions.
The MoU sits alongside wider UK–Gulf economic engagement. DBT reported good progress through six rounds of negotiations on a UK–GCC free trade agreement by February 2024, with the GCC Secretariat later reiterating an ambition to accelerate towards signing. Any financing arising from this MoU will still be approved case by case under UKEF’s country cover policy.