Britain to help reform Saudi economy

Riyadh : Britain said yesterday it would help Saudi Arabia to diversify its oil-dependent economy as British Prime Minister Theresa May visited the Gulf kingdom.

British Prime Minister Theresa May and Custodian of the Two Holy Mosques Saudi King Salman bin Abdulaziz Al Saud held talks focused on “bilateral relations and cooperation” as well as “regional and international developments”, the official news agency SPA said.

A statement from May’s office said the two discussed several issues including security and strengthening business ties.

An earlier statement from May’s office said she would discuss with “tax and privatisation standards to help Saudi Arabia diversify its economy and become less reliant on oil”.

The prime minister “pointed out that security relationships between the two counties had saved many lives in the UK”, her office said.

Saudi Arabia faces a significant budget deficit with billions of dollars in debts to private firms, largely in the construction business, after a drop in global oil prices by about half since 2014.

Britain will also assist Riyadh in “building a reformed Ministry of Defence” and reviewing defence capabilities, the premier’s office said.

May’s visit came as she seeks to secure investment and trade after Britain officially started a two-year countdown to leave the European Union. 

The premier pitched the London bourse as a venue for the expected listing of oil giant Saudi Aramco, Bloomberg news cited an unnamed British official as saying.

May held a private meeting with Energy Minister Khaled al-Falih, who also heads Aramco, in the presence of London Stock Exchange Group Plc chief Xavier Rolet, the official said.  May’s office said she and King Salman “discussed working together to address the humanitarian situation in Yemen”. 

Saudi Arabia has bought more than $5 billion (4.7bn euros) worth of arms from the United States and Britain since the Yemen intervention, the Stockholm International Peace Research Institute think-tank says. On Tuesday, May held talks with a string of officials including Saudi Crown Prince and Interior Minister Mohammed bin Nayef and Defence Minister Mohammed bin Salman, who is second in line to the throne.