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Economy
09 December 2024

UK Strengthens Ties With Saudi Arabia To Boost Northern Economy

Prime Minister Starmer and North East Mayor McGuinness explore trade opportunities and green energy partnerships

The North of England is on the brink of significant economic transformations following recent discussions between UK Prime Minister Sir Keir Starmer and Saudi officials, with the North East set to reap immediate benefits. Starmer’s trip to the Gulf region is aimed at strengthening economic ties, particularly with Saudi Arabia and the United Arab Emirates, signaling a purposeful intent to drive investment back home.

Kicking off the week, Prime Minister Starmer and North East Mayor Kim McGuinness have embarked on talks exploring opportunities for green energy initiatives and broader economic partnerships. According to Mayor McGuinness, the North East has never had such a momentous opportunity to assert itself on the global stage. “I am determined we step forward to take these opportunities, working alongside the Prime Minister to bring home new investment,” she explained.

Starmer reiterated his commitment to making sure the benefits of international diplomacy translate directly to local results. He highlighted, “Every region and nation in the United Kingdom should feel the impact of our Plan for Change.” This sentiment is particularly poignant as the discussions revolve around establishing clean energy projects and other investment initiatives aimed at creating jobs for local communities.

A marquee aspect of these developments is the announcement of a collaborative project involving graphene, the wonder material renowned for its impressive properties, including strength and conductivity. Graphene Innovation Manchester is set to launch the world’s first commercial production of graphene-enriched carbon fibre, intended for use within Saudi Arabia’s ambitious NEOM project—a massive urban development aimed at building sustainable cities and creating ecosystems without reliance on fossil fuels.

This project is not only expected to generate several hundred jobs but also inject approximately £250 million of investment back to Greater Manchester and its surrounding areas, including the North East. The Prime Minister emphasized his goal to facilitate international agreements building upon the already close historic ties between Newcastle and Saudi Arabia, especially following the Saudi Public Investment Fund's acquisition of Newcastle United Football Club.

While ambitions are high, the Prime Minister and his team have faced skepticism, particularly from human rights organizations urging him to vocalize concerns surrounding Saudi Arabia’s human rights record during his diplomatic engagements. Just this year, reports have surfaced indicating over 300 executions have taken place within the kingdom, leading advocacy groups like Reprieve calling for Prime Minister Starmer to take action. “We need him to help save the lives of those awaiting the death penalty, including two child defendants,” the organization stated, drawing attention to important ethical issues intertwined with economic deals.

Despite the tension surrounding human rights issues, Starmer remains focused on the economic potential of these partnerships. His ambitious vision includes establishing a Joint International Institute for Clean Hydrogen, with Newcastle University featured prominently within this initiative. This new institute plans to pioneer research and development efforts to establish the North East as an engineering powerhouse capable of driving sustainable energy solutions.

But the opportunities presented aren’t limited to hydrogen alone. Starmer’s discussions have also considered partnerships with universities from both the UK and Saudi Arabia to advance clean energy technologies, positioning them as leaders within this rapidly advancing field. Various UK universities, including Newcastle, Northumbria, and Durham, are slated to collaborate with their Saudi counterparts to bolster research and education related to clean energy.

The backing from Saudi investments doesn’t stop at theoretical frameworks either; its practical implementations will directly affect local communities. The proposed joint agreements and partnerships support developing local economies by creating sustainable job opportunities—both temporary and permanent—gearing the North East toward recovery from recent economic challenges exacerbated by the pandemic.

The future projects plan to prioritize environmentally sustainable materials and practices, with agreements involving health-focused industries contributing to long-term job security and economic revitalization. Prime Minister Starmer hinted at these developments as part of the UK’s larger strategy to become increasingly independent from fossil fuels, noting, “Clean energy can be the source of the jobs of the future.”

This determination was also echoed by Energy Secretary Ed Miliband, who reinforced the notion of using recent agreements as exemplifying how the UK could collaborate with other nations to conduct investments beneficial for both parties. “Today’s agreements show how the UK is working with countries to bring investment and jobs to Britain,” he added.

These strategies are particularly significant as much of the focus lies on how the UK can reclaim its value proposition to investors and international partners. The ambition is evident: the goal is to drive innovation, support regenerative projects, and attract fresh investments—essentially breathing new life not just to the North East but to the entire UK’s industrial capabilities.

While the international relationships evolve, local leaders also express cautious optimism about the potential for real change. There is recognition within Newcastle and surrounding districts of the importance of simultaneously addressing concerns about ethical governance and human rights issues alongside the potentiation of economic opportunity.

The strong message from local leaders resonates with wider community expectations; they seek to balance new investments with accountability, ensuring the partnerships developed do not ignore significant human rights or environmental concerns. This scrutiny echoes echoed calls from various activists to overhaul business trip structures, advocating for rigorous human rights assessments to accompany trade deals.

Overall, the meeting between Prime Minister Starmer and Saudi Arabian officials outlines ambitious objectives, expecting to create thousands of jobs and facilitate significant foreign investment. The discussions open doors to numerous possibilities for local education and industry collaborations, building on sustainable practices. These deals promise not only immediate economic relief but also future-facing opportunities for the North of England.

With the excitement surrounding new projects, partnerships, and job creation, there’s hope within communities for the North East to stand resiliently on the world stage. The commitment from local and national leaders alike signals a new chapter focused on economic recovery and sustainable growth, potentially cementing the region’s future as it embraces new international partnerships.