Britain Offers to Help to Wean Saudi Economy Off Oil Dependency
Comment of the Day

April 05 2017

Commentary by David Fuller

Britain Offers to Help to Wean Saudi Economy Off Oil Dependency

Here is the opening of this interesting article from Bloomberg:

U.K. Prime Minister Theresa May plans to help Saudi Arabia lower its dependency on oil exports and increase the participation of women in the workforce as the Gulf kingdom seeks to modernize its economy.

Britain will help reform the Saudi Ministry of Defense, and foreign and trade ministers from both nations will hold six-monthly meetings under an agreement to be sealed in Riyadh on Wednesday when the premier is due to meet King Salman bin Abdulaziz Al Saud.

U.K. tax and privatization experts will also advise Saudi officials on how to diversify the country’s economy away from oil, according to a statement from May’s office.

A week after triggering two years of talks to pull Britain out of the European Union, May is on a diplomatic drive to strengthen ties with Saudi Arabia, a major commercial partner that buys 40 percent of U.K. arms exports, as well as an ally in the fight against terrorism.

Saudi Arabia is seeking a sixfold increase in non-oil government revenue by 2030, and it also aims to increase the participation of women in its workforce to 30 percent from 22 percent.

On Monday, May refrained from criticizing Saudi Arabia’s record on human rights and the rights of women as she began a three-day trip to the Middle East, choosing instead to focus on “historical’’ ties. 

The premier also said her presence in Saudi Arabia would show “what women can achieve.’’ She disembarked from her plane in Riyadh on Tuesday to greet Saudi officials without wearing a headscarf, in contravention to the U.K. government’s own advice on women’s attire in the country.

David Fuller's view

Smart move.  There is a gap in this market because Trump has offended Muslims and the EU continues to look inwards. 

It would have been ridiculous if Theresa May had marched in and criticised Saudi’s rulers on human rights, not to mention unproductive.  She is someone who can lead by example without offending her hosts.

Britain could and should have an extremely strong trade and advisory relationship with the Saudis, which is exactly what this country needs.  I hope the Prime Minister builds on this business development role.  Lead from the top if you want to open commercial doors. Then send in qualified teams who can help the Saudis or anyone else in developing numerous projects.

May’s positive leadership will also help in her in negotiations with the EU on Brexit.  Her can-do entrepreneurial approach will finally convince EU officials that, yes, Britain really is leaving and very likely to be more successful over the long term as an independent sovereign nation trading with the world.    

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