LONDON: It is an institution that dates back a millennium, with local settlement in its area of governance traced back to Roman Britain and earlier.
It has seen off successive economic threats, catastrophe in Europe, and most recently, Brexit-related shocks.
It once served as the engine of the British Empire, becoming the financial center of wealth and capital drawn from colonies around the world.
But now the City of London has set its eyes on the cities and sands of , hoping to spearhead a new business relationship that will see the Kingdom’s ambition enshrined in Vision 2030 fused with centuries-old British prowess in finance and management.
Alastair King, the City’s lord mayor, is set to embark on the third visit of his mayoralty to next week to take part in a follow-up meeting that will build on a pioneering assembly launched in Riyadh earlier this year.
The meeting will take place on the sidelines of the ninth edition of the Future Investment Initiative, ’s landmark nonprofit foundation that has enticed heads of state, top business executives, and thought leaders to the Kingdom.
Hosting the UK-Saudi Sustainable Infrastructure Summit alongside the world’s top business minds is “very, very helpful” and “presents all sorts of opportunities,” King told Arab News in an interview conducted at Mansion House, his official residence located in the historic Square Mile.
“It is a very new way of doing things. I really like the idea that (the assembly) is a multidisciplinary group from and also from the UK.
“People are absolutely ready to mobilize on a very quick basis in order to reduce the cost of capital for projects. I think one of the things we’re going to do is to work out what happens next … that’s something that we’ll be discussing in the meeting.”
The strategic partnership, which includes the Saudi Ministry of Investment and the UK’s Department for Business and Trade, aims to build ties between Britain’s esteemed financial and professional services industries and the Kingdom’s fast-growing sustainable infrastructure sector.
Under the Saudi Vision 2030 reform program, more than $1 trillion has been earmarked for infrastructure and real estate development, providing an ideal market for foreign investment and expertise.
Capitalizing on the new gold rush, the UK-Saudi Sustainable Infrastructure Assembly held its first meeting at launch in May, followed by a second in the summer, held in London.
For King, the meeting at the FII — his final trip to the Kingdom as mayor — is one of the culminating events of his two-year term.
“Well, look, it’s an area I’ve had the great honor to know a little bit about,” he said.
“I’ve done a fair bit of business over the years in the GCC and in . I’ve been there a few times beforehand. The FII, I’ve been to before, two or three times, and I’ve always got an awful lot of personal interest in that respect.”
King was first elected to the Ward of Queenhithe, one of the 25 ancient wards of the City of London, in 1999. He first served as a Common Council member, then deputy, and later as alderman.
He also served as sheriff of London for the 2022-23 term, and has held positions in a multitude of the City’s livery companies — a type of guild in the Square Mile with origins in the Middle Ages.
The strange juxtaposition of the City sees livery officials codify the practices of traditional London professions, such as haberdashery and the trading of precious metals, while financial workers in nearby offices oversee billions of dollars worth of enterprise each day.
The origins of the City itself can only be speculated upon, as its formation lacks reference through any surviving record or charter.
Rather, its incorporation rests upon the ancient doctrine of prescription, whereby the law presumes its status because it has, for a significant passage of time, been regarded as such.
The City’s status is enshrined in one of history’s most iconic documents of liberty and freedom, the Magna Carta, which provides the basis for English common law.
London was the only city mentioned by name in the document. Its 13th clause states that “the City of London shall have all its ancient liberties and free customs, both by land and by water.”
For King, the rich history of common law is a strong selling point for foreign investors from the Gulf.
“The other thing about us, of course, is that if things go wrong, we have perhaps the best dispute resolution system in the world in the form of the English common law, in order to help sort all that out,” he said.
“And I think that’s really important. And it reduces, again, the potential frictions and also the cost of doing business.”
Financial and business ties between the UK and Gulf Cooperation Council economies have been a key focus of successive British governments.
Throughout his tenure, King has “absolutely” aimed to place the City at the forefront of British business outreach efforts, in an attempt to capitalize on the “enormous” potential waiting to be tapped.
“I do think that there’s all sorts of opportunities,” he said. “The possibilities over the course of the next decade between the UK and are enormous. And I just think we’re just scratching the surface to a large degree.
“The other element is that it’s been preparing and going in parallel in relation to the GCC free trade agreement. It’s obviously something that we’re keen to see. And the idea of going off to see the right people in and other parts of the GCC — I think that makes a lot of sense.”
Negotiations between the UK and the Gulf Cooperation Council on a landmark free trade agreement have been ongoing since 2022. Forecasts suggest a deal could boost bilateral trade by 16 percent, adding billions to the economies of the UK and Gulf states each year.
Although King and the City are absent from the national format talks on the British end, the corporation has “really tried to create some good music” to spur on negotiations.
This “shows that this is something that we think is important,” he said, adding: “We’d like to see it happen.”
Beyond sustainable infrastructure, dealmaking between the UK, , and the wider Gulf can draw on expertise and interest to enter new sectors, said King.
“I think London is uniquely talented and deep; it has great, deep talent in relation to new fintech, so there are great opportunities there. Obviously, in quantum and AI, these types of areas, but also green finance, we are really very good when it comes to those sorts of areas.
“I’d also like to see more involvement in and collaboration in relation to insurance. I think there’s great opportunities in insurance, and in other areas such as banking, asset management and legal services.”
The Mansion House Accords, described by King as the proudest accomplishment of his mayoralty, provide an obvious avenue of collaboration for Saudi business.
The voluntary deals, signed in May, saw 17 of the UK’s largest pension providers commit to invest more in the British economy, unlocking tens of billions of pounds in capital.
That could lead to a surge of British investment in ’s flourishing growth sectors, King said, adding that the accords present a “great opportunity for direct investment into … and hunting together around the world with n funds.”
He added: “I’m obviously very proud of the Mansion House Accords. It’s a big program — £100 billion ($133 billion) potentially over the next four years. It’s not often that you get to spearhead a £100 billion program.”
King envisages the City playing the role of an “honest introducer” for investment deals targeting British and Gulf investment.
“If we work out who might be the right candidate to partner with a n company, for instance, I think that’s a really good role for the mayoralty to play,” he said.
This week, King called for red tape to be cut and the Square Mile to undergo an “attitude shift” to stay competitive.
Despite his criticism, however, he is bullish on British finance and the UK’s business prospects, particularly with regard to new Saudi ties.
“I think there’s an awful lot of commonality (with the UK) in the way that business is done in the GCC and in ,” he said.
“I do think that we’ve got a very good understanding between the UK and in the business communities.”
His message to Gulf investors is simple: “With British businesses, we’re very good at what we do. We’re a global center — extremely strong in insurance, legal services, foreign exchange, asset management, banking.
“We do these things remarkably well. We genuinely do what we say we’re going to do.”
