UK-Saudi Relations

UK-Saudi Relations from 1990 to 2009

Chapter III: UK-Saudi Economic Relations from 1990 to 2009

Introduction

The United Kingdom and Saudi Arabia have long been close allies. There are more than 150 joint ventures between British and Saudi Companies and some 30,000 British nationals are living and working in Saudi Arabia. Saudi Arabia is the United Kingdom's primary trading partner in the Middle East.

The UK has an embassy in Riyadh, consulate in Jeddah and trade office in Al Khobar. Saudi Arabia has an embassy and consulate in London.

In 2005 the United Kingdom and Saudi Arabia agreed a military agreement, where the UK would equip Saudi Arabia with Eurofighter Typhoons. As a result of the deal a spokesman stated:

"I welcome this Understanding as the latest practical example of the close relationship that exists between the United Kingdom and Saudi Arabian Governments. It offers opportunities for forging closer links between our armed forces and industries, which will benefit both nations."

"This Understanding is good news for both UK and Saudi industry. BAE SYSTEMS, as Prime Contractor, and its many UK sub-contractors will benefit from the work envisaged under this Understanding, which will help sustain several thousand UK jobs over the next ten years. In addition, the associated technology transfer, training and inward investment packages will generate many skilled jobs in Saudi Arabia." (Abed and Davoodi , 2003, 596).

Fahd's foreign policy professes a commitment to Arab unity, regional peace, and global community. Primary concerns have always been to maintain the kingdom's security and its paramount position on the Arabian Peninsula, to defend general Arab and Islamic interests, to promote solidarity among Islamic governments, and to maintain cooperative relations with other oil-producing and major oil-consuming countries. While Saudi Arabia has always maintained close relations with the West and particularly the United States, Fahd is considered to be more pro-West than other royal family members. Fahd took over as crown prince at a very crucial time. Since the October 1973 Arab-Israeli War, the oil embargo, and subsequent oil price hike, Saudi Arabia has emerged as a major actor in the international arena and is a leading power in the Arab world. (Zineldin , Johannisson and Dandridge , 1997, 89)

The Saudi government frequently helps mediate regional crises and supports the Israeli-Palestinian peace negotiations. Though Fahd is fully supportive of the Palestinian cause, he has presented peace plans calling for compromise that would indirectly recognize the legitimacy of Israel and protect freedom of worship for all religions in Jerusalem while providing for the creation of a Palestinian state. In March 2002, the Saudi government put forward a new peace proposal for the Palestinians and Israelis. Referred to as the "Beirut Declaration," the plan offered Israel normalized relations with the Arab states and a guarantee of peace and security in exchange for a full Israeli withdrawal from the territories occupied by Israel after the 1967 Arab-Israeli war, a "just solution to the Palestinian refugee problem," and Israeli recognition of a Palestinian state with its capital at East ...