Merger and acquisition activity between Saudi Arabia and Britain has soared since August when travel restrictions eased, as a new direct investment programme between the two countries offers a further boost to Saudi-UK relations.
Fikry Younis, the Riyadh-based partner of Lumina Capital Advisers, said activity in the Saudi-UK corridor has risen 50 per cent since the summer on the back of eased travel regulations, Brexit and Saudi Arabia’s implementation of Vision 2030.
“Scaling in Saudi Arabia is the main theme that we're seeing right now — whether it's Saudi investors looking to bring in UK expertise and capabilities or UK investors looking to find new or larger markets for their products,” said Mr Younis.
“When we're talking about acquisitions [it’s due to] the prevalence of expertise and knowledge in the UK and the need for that expertise and knowledge in Saudi Arabia,” he said.
The increased deals activity between the two nations comes after the signing of a pact to promote direct investment last month, following a meeting between representatives from Saudi Arabia’s Ministry of Investment and the UK’s Department for International Trade on the sidelines of the Future Investment Initiative conference in Riyadh.
However, other factors at play in the ramp-up include the “prevailing economic conditions” challenging Britain’s economy after its exit from the EU and as the Covid-19 pandemic began affecting supply chains.
“In contrast, in Saudi Arabia, things are picking up. We have Vision 2030, which was announced in 2016, and now we're starting to see some of the fruits of that and we're building up the momentum for the next five years. So, this is the intersection between Saudi Arabia in the UK — the prevailing economic conditions and the need for expertise and capabilities,” Mr Younis said.
Britain’s economic growth slowed sharply in the third quarter, with gross domestic product growing only 1.3 per cent, compared to 5.5 per cent in the previous three months, in a further sign the economic recovery is faltering amid supply chain challenges.
Meanwhile, Saudi Arabia’s economy grew 6.8 per cent in the third quarter, its fastest pace since 2012, the kingdom’s General Authority for Statistics said, with the country creating 555,000 new jobs in the last four years as it looks to develop $1 trillion worth of new projects to meet its Vision 2030 objective of diversifying the economy away from oil.
“The targets for the vision in Saudi Arabia are very ambitious, and for that, there is a need for expertise and capabilities that today does not exist in the kingdom,” said Mr Younis.
With the growth in M&A deals so significant, Lumina has set up an office in Riyadh to handle the work — complementing its existing bases in London and Dubai — with Mr Younis, who was a former adviser at the Saudi Ministry of Investment and who held executive roles at Alkhabeer Capital in Jeddah and Shuaa Capital, taking the helm.
With more than 600 British companies in Saudi Arabia, the kingdom aims to benefit from British expertise in education, finance, supply chains in the health sector, advanced technologies and human resource development, said Saudi Minister of Investment Khalid Al Falih, who said in August that the country aims to double its investments in the UK's healthcare sector.
Mr Younis said Lumina was already seeing increased activity in health care as well as social infrastructure, education, logistics and technology, “whether it's healthtech, edtech or FinTech".
As Saudi Arabia transforms and strives to attract regional headquarters of multinationals, it will need to improve the quality of life it offers, Mr Younis said, which is why privatising its healthcare system and raising the standard of its schools are key.
“With the changing scene in Saudi Arabia and the fact that you have these large and very old and reputable institutions in the UK, I think we have a great match,” he said.
Examples of this are already evident with King’s College Hospital set to open a 150-bed facility in Jeddah next year, offering residents more than 40 medical and surgical specialities that tap into the 178-year-old legacy of the UK brand.
In education, King’s College Riyadh — an offshoot of the 140-yer-old King’s College, Taunton in Dorset — became the first British boarding school to set up in Saudi Arabia when it welcomed its first pupils in August.
Meanwhile, Newcastle United's long-awaited purchase by a Saudi-backed consortium, including the kingdom's $430 billion sovereign wealth fund PIF (Public Investment Fund), is another example of “the momentum to increase the traffic along the Saudi-UK corridor”, said Mr Younis.
Paul Arnold, managing director of Sovereign Saudi Arabia, which provides company formation and management advice as well as tax guidance for firms looking to set up in the kingdom, has also noticed a boost in demand from UK companies.
“Since the summer when Saudi Arabia announced that people can travel, businesses that were hesitating to make a decision and move have now pushed the button,” said Mr Arnold.
“Things are moving again but we're seeing more investment into Saudi Arabia than Saudi investment into the UK.”
The main sectors attracting UK businesses are energy and water, IT, hospitality and entertainment, Mr Arnold said, as companies including small SMEs and large multinationals look to set up a regional base in Riyadh.
The world's top exporter is giving foreign firms until the end of 2023 to set up headquarters or a regional base in the country or risk losing government contracts.
With 44 international companies already licensed by Saudi Arabia, Mr Arnold said he expects to see a surge in demand from the UK as more companies look to establish a base in city as the deadline nears.
“We’re up about 30 per cent on where we were this time last year,” he said referring to the work the company carries out for UK companies.
“With all of the relaxed regulations and the way the kingdom is opening itself up, if you look at the next decade, the way forward is Saudi Arabia,” he said, and added that 40 per cent of the enquiries Sovereign currently receives are from people who have had “bad advice” in the past and are now looking “to rework their market entry strategy”.
One key area of excitement centres on the kingdom’s tourism, leisure and entertainment sectors.
Tourism is expected to account for more than 10 per cent of Saudi Arabia’s gross domestic product by 2030 — up from 3 per cent currently — and provide one million jobs with projects such as Neom — a $500bn futuristic city comprising a nature reserve, coral reefs and heritage sites on islands along the Red Sea — and a mega-entertainment and sports project called Qiddiya in the capital.
Last month Saudi Arabia’s Tourism Development Fund and London hospitality company Ennismore established a $400m fund to help bring Ennismore’s lifestyle brands to 12 destinations in the kingdom.
Meanwhile, Saudi Arabia’s bid to become a golf destination is also attracting players from the UK, with Mr Younis also expecting the country's restaurant scene to become more sophisticated to accommodate visitors, as the kingdom plans invest more than $1tn in the tourism sector over the next 10 years.
“That will increase the demand for more quality food products from the UK, whether it's Scotch beef or Welsh lamb,” said Mr Younis, whose company charges a fixed fee to help companies secure business and a success fee of up to 5 per cent of the transaction size.
With the size of the deals Lumina handles sitting in the “sweet spot of between the $20 and $100m”, Mr Younis said there are also opportunities in food security following the Covid-19 crisis and in green technology.
Green projects were a key focus of the recent Saudi-UK investment pact, with Mr Al Falih highlighting green technology and associated infrastructure through public-private partnerships as a way to help Saudi Arabia reach carbon neutrality.
“We have to deal with carbon as part of our economy, as part of our ecosystem for decades to come,” he said at the Future Investment Initiative conference.
Next year, Mr Younis expects even more activity as the world adapts to a post-Covid world after a recent networking event in Dubai highlighted the interest in the country.
“We were worried that people might not show up to our event in Dubai but we had a full room and people just kept asking questions,” he said.
Mr Arnold is also expecting 2022 to be busy despite the shadow of Covid-19 still hanging heavily as the world grapples with the new Omicron strain.
“Even during Covid, we were still writing business in Saudi Arabia for international companies, ” he said. “You don't necessarily need to be physically in Saudi Arabia to set your company up — that’s what we’re there for.”
UAE currency: the story behind the money in your pockets
ELIO
Starring: Yonas Kibreab, Zoe Saldana, Brad Garrett
Directors: Madeline Sharafian, Domee Shi, Adrian Molina
Rating: 4/5
Credit Score explained
What is a credit score?
In the UAE your credit score is a number generated by the Al Etihad Credit Bureau (AECB), which represents your credit worthiness – in other words, your risk of defaulting on any debt repayments. In this country, the number is between 300 and 900. A low score indicates a higher risk of default, while a high score indicates you are a lower risk.
Why is it important?
Financial institutions will use it to decide whether or not you are a credit risk. Those with better scores may also receive preferential interest rates or terms on products such as loans, credit cards and mortgages.
How is it calculated?
The AECB collects information on your payment behaviour from banks as well as utilitiy and telecoms providers.
How can I improve my score?
By paying your bills on time and not missing any repayments, particularly your loan, credit card and mortgage payments. It is also wise to limit the number of credit card and loan applications you make and to reduce your outstanding balances.
How do I know if my score is low or high?
By checking it. Visit one of AECB’s Customer Happiness Centres with an original and valid Emirates ID, passport copy and valid email address. Liv. customers can also access the score directly from the banking app.
How much does it cost?
A credit report costs Dh100 while a report with the score included costs Dh150. Those only wanting the credit score pay Dh60. VAT is payable on top.
UAE currency: the story behind the money in your pockets
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
U19 World Cup in South Africa
Group A: India, Japan, New Zealand, Sri Lanka
Group B: Australia, England, Nigeria, West Indies
Group C: Bangladesh, Pakistan, Scotland, Zimbabwe
Group D: Afghanistan, Canada, South Africa, UAE
UAE fixtures
Saturday, January 18, v Canada
Wednesday, January 22, v Afghanistan
Saturday, January 25, v South Africa
UAE squad
Aryan Lakra (captain), Vriitya Aravind, Deshan Chethyia, Mohammed Farazuddin, Jonathan Figy, Osama Hassan, Karthik Meiyappan, Rishabh Mukherjee, Ali Naseer, Wasi Shah, Alishan Sharafu, Sanchit Sharma, Kai Smith, Akasha Tahir, Ansh Tandon
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Killing of Qassem Suleimani
UAE currency: the story behind the money in your pockets
Company%20profile%20
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EYodawy%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Egypt%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarim%20Khashaba%2C%20Sherief%20El-Feky%20and%20Yasser%20AbdelGawad%3Cstrong%3E%3Cbr%3ESector%3A%20%3C%2Fstrong%3EHealthTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%2424.5%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EAlgebra%20Ventures%2C%20Global%20Ventures%2C%20MEVP%20and%20Delivery%20Hero%20Ventures%2C%20among%20others%3Cstrong%3E%3Cbr%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20500%3Cbr%3E%3C%2Fp%3E%0A
THE SPECS
Engine: 4.4-litre V8
Transmission: Automatic
Power: 530bhp
Torque: 750Nm
Price: Dh535,000
On sale: Now
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Uefa Champions League play-off
First leg: Wednesday, 11pm (UAE)
Ajax v Dynamo Kiev
Second leg: Tuesday, August 28, 11pm (UAE)
Dynamo Kiev v Ajax
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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ALRAWABI%20SCHOOL%20FOR%20GIRLS
%3Cp%3ECreator%3A%20Tima%20Shomali%3C%2Fp%3E%0A%3Cp%3EStarring%3A%C2%A0Tara%20Abboud%2C%C2%A0Kira%20Yaghnam%2C%20Tara%20Atalla%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Ireland v Denmark: The last two years
Denmark 1-1 Ireland
7/06/19, Euro 2020 qualifier
Denmark 0-0 Ireland
19/11/2018, Nations League
Ireland 0-0 Denmark
13/10/2018, Nations League
Ireland 1 Denmark 5
14/11/2017, World Cup qualifier
Denmark 0-0 Ireland
11/11/2017, World Cup qualifier
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
More from Neighbourhood Watch:
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
WandaVision
Starring: Elizabeth Olsen, Paul Bettany
Directed by: Matt Shakman
Rating: Four stars
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%3Cp%3EChris%20Jordan%20insists%20Sanchit%20Sharma%20will%20make%20an%20impact%20on%20the%20ILT20%2C%20despite%20him%20starting%20the%20campaign%20on%20Gulf%20Giants'%20bench.%3Cbr%3EThe%20young%20UAE%20seamer%20was%20an%20instant%20success%20for%20the%20side%20last%20season%2C%20and%20remained%20part%20of%20the%20XI%20as%20they%20claimed%20the%20title.%3Cbr%3EHe%20has%20yet%20to%20feature%20this%20term%20as%20the%20Giants%20have%20preferred%20Aayan%20Khan%20and%20Usman%20Khan%20as%20their%20two%20UAE%20players%20so%20far.%3Cbr%3EHowever%2C%20England%20quick%20Jordan%20is%20sure%20his%20young%20colleague%20will%20have%20a%20role%20to%20play%20at%20some%20point.%3Cbr%3E%22Me%20and%20Sanchit%20have%20a%20great%20relationship%20from%20last%20season%2C%22%20Jordan%20said.%3Cbr%3E%22Whenever%20I%20am%20working%20with%20more%20inexperienced%20guys%2C%20I%20take%20pleasure%20in%20sharing%20as%20much%20as%20possible.%3Cbr%3E%22I%20know%20what%20it%20was%20like%20when%20I%20was%20younger%20and%20learning%20off%20senior%20players.%3Cbr%3E%22Last%20season%20Sanchit%20kick-started%20our%20season%20in%20Abu%20Dhabi%20with%20a%20brilliant%20man-of-the-match%20performance.%3Cbr%3E%22Coming%20into%20this%20one%2C%20I%20have%20seen%20a%20lot%20of%20improvement.%20The%20focus%20he%20is%20showing%20will%20only%20stand%20him%20in%20good%20stead.%22%3C%2Fp%3E%0A
ACL Elite (West) - fixtures
Monday, Sept 30
Al Sadd v Esteghlal (8pm)
Persepolis v Pakhtakor (8pm)
Al Wasl v Al Ahli (8pm)
Al Nassr v Al Rayyan (10pm)
Tuesday, Oct 1
Al Hilal v Al Shorta (10pm)
Al Gharafa v Al Ain (10pm)
UAE currency: the story behind the money in your pockets
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
SQUAD
Ali Khaseif, Fahad Al Dhanhani, Adel Al Hosani, Mohammed Al Shamsi, Bandar Al Ahbabi, Mohammed Barghash, Salem Rashid, Khalifa Al Hammadi, Shaheen Abdulrahman, Hassan Al Mahrami, Walid Abbas, Mahmoud Khamis, Yousef Jaber, Saeed Ahmed, Majed Sorour, Majed Hassan, Ali Salmeen, Abdullah Ramadan, Khalil Al Hammadi, Fabio De Lima, Khalfan Mubarak, Tahnoun Al Zaabi, Ali Saleh, Caio Canedo, Muhammed Jumah, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
THE SPECS
Engine: 3.6-litre V6
Transmission: eight-speed automatic
Power: 285bhp
Torque: 353Nm
Price: TBA
On sale: Q2, 2020
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Biography
Favourite book: Zen and the Art of Motorcycle Maintenance
Holiday choice: Anything Disney-related
Proudest achievement: Receiving a presidential award for foreign services.
Family: Wife and three children.
Like motto: You always get what you ask for, the universe listens.
