In spite of the huge downturn in business in the past 18 months the kingdom still represents a priority export target for the United Kingdom, representing the fourteenth largest market for UK goods and the ninth biggest market for UK services in the world. According to the British Embassy in Riyadh some 30,000 British nationals live and work in Saudi Arabia. Glaxo, Shell, BP-Amoco, Rolls Royce, British Aerospace, GEC, Taylor Woodrow, Smithkline Beecham, M K Caradon are among numerous British companies directly involved in manufacturing and joint ventures. Sir Norman Foster has designed the huge Faisaliyah complex under construction in Riyadh for Prince Al Waleed's Kingdom Group. UK household names such as Mothercare, Next, British Home Stores, Wallis and Royal Doulton and others have also become familiar names in Saudi shopping malls.
Trade is a two-way process though and Saudi Arabia is anxious to sell more to the United Kingdom.
A visit to London by Crown Prince Abdullah bin Abdulaziz earlier this year was followed by the arrival in the United Kingdom of a business group led by Khalid Al Zamil, president of the Council of Saudi Chambers of Commerce. One difficulty in seeking to increase Saudi exports is that only 11 per cent of the kingdom's exports to the United Kingdom comprise crude petroleum. However, the United Kingdom does represent one of the largest markets for non-oil Saudi exports, boosted by machinery and transport equipment acquired for repair or resale as well as general manufactured articles. The memorandum of understanding has subsequently evolved to include an economic offset agreement which is now the cornerstone for UK direct investment in Saudi Arabia. Seven joint ventures have been established so far.