Saudi-Arabia-Upon-The-Thames: Arab Reach Revisited

This report examines Saudi Arabian investment and influence in the United Kingdom, updating the observations made by Hoag Levins in his 1983 book, Arab Reach. Levins’ chapter, “Arabia-Upon-The-Thames,” detailed the burgeoning Saudi presence in the UK during the early 1980s, a period marked by significant shifts in the global oil market and the UK’s own economic circumstances.

This updated report, set in 2025, will explore how the trends identified by Levins have evolved and what the current state of this relationship entails for both nations.

Arabia-Upon-The-Thames Revisited: A Look Back at Levins’ Observations

In “Arab Reach,” Hoag Levins reported on a United Kingdom increasingly reliant on Arab wealth, even as it achieved petroleum independence through North Sea oil discoveries. The early 1980s saw a substantial influx of Arab capital into London, transforming the city’s cultural and economic fabric.¹

Levins highlighted the establishment of London as a center for recycling petrodollars, the rise of Arab financial institutions and investors in Britain, and the growing presence of Muslim professionals.¹ He noted the acquisition of significant London landmarks by Arab investors, the increasing popularity of Arabic culture, and the adaptation of British businesses to cater to this new demographic.¹

Levins also touched upon the strategic complexities of this relationship, including instances where Saudi Arabia exerted its influence on British policy.¹

The Economic Landscape: From Petrodollars to Diversified Investments

Fast forward to 2025, and the economic ties between Saudi Arabia and the UK remain significant, although the nature of investment has broadened beyond the recycling of petrodollars described by Levins. While the inward Foreign Direct Investment (FDI) stock from Saudi Arabia to the UK in 2023 was £685 million ², representing less than 0.1% of the total UK inward FDI stock ², Saudi Arabia’s strategic investment arm, the Public Investment Fund (PIF), has shown increasing interest in diverse sectors.¹⁴ This aligns with Saudi Arabia’s Vision 2030, which aims to diversify its economy and establish the Kingdom as a global investment powerhouse.¹⁴

PIF’s acquisition of a 10% stake in Heathrow Airport in November 2023 ¹⁸ and its majority stake in Newcastle United Football Club in 2021 ²⁰ are prominent examples of Saudi investment in key UK assets. These investments reflect a strategic intent that extends beyond financial returns to include enhancing Saudi Arabia’s global presence.²⁰

Bilateral trade between the UK and Saudi Arabia reached £16.1 billion in the four quarters leading up to the end of Q4 2024.²² The UK maintains a trade surplus, driven by strong exports of services.⁴ Financial collaborations are also deepening, with discussions around dual listings on the London and Riyadh stock exchanges ²² and cooperation in Islamic finance initiatives.⁸ Initiatives like the UK-Saudi Sustainable Infrastructure Assembly, launched in April 2025 ¹⁴, aim to further strengthen economic ties and facilitate Saudi investment in UK infrastructure projects.¹⁴

Key Economic Indicators: UK-Saudi Arabia Trade and Investment (2023-Q4 2024)

Political and Strategic Influence: A Continuing Alliance

The strategic partnership between the UK and Saudi Arabia, which Levins alluded to through the British government’s “unofficial” meetings with the PLO in the early 1980s ¹, has solidified over the decades.¹ Despite occasional disagreements, the alliance is built on shared interests in regional stability, counter-terrorism, and economic cooperation.³⁴ The Strategic Partnership Council serves as a key platform for bilateral cooperation.⁸

Defense cooperation, including arms sales, remains a significant aspect of this relationship ¹, although it continues to draw public and political scrutiny in the UK due to concerns about human rights in Saudi Arabia and the conflict in Yemen.¹

While the UK government maintains its independence in foreign policy decisions, the close economic and strategic ties with Saudi Arabia may exert influence on its approach to Middle Eastern issues.¹ Recent discussions involving the UK, France, and Saudi Arabia regarding the recognition of a Palestinian state ⁵⁴ highlight the evolving dynamics and potential shifts in UK policy in the region.

Cultural Currents: An Integrated Muslim Community

As Levins observed the growing Muslim presence in London in the early 1980s ¹, the Muslim population in the UK has continued to expand significantly.⁶⁰ By 2021, the UK had nearly four million Muslims, representing around 6% of the total population.⁶³ A significant portion of this community is now UK-born ⁶⁵, indicating increasing “integration” into British society:

While Saudi Arabia has historically contributed to funding mosques and Islamic centers in the UK ⁷⁸, there is a growing emphasis on cultural exchange programs in areas like arts, heritage, and education. Initiatives such as the collaboration between the Royal Institute of Traditional Arts in Saudi Arabia and the UK’s Royal College of Art and UK support for the development of AlUla as a cultural hub demonstrate a broadening of the relationship beyond economic and political spheres.

From the 1980s to 2025: An Evolving UK

The UK-Saudi relationship has transformed significantly since the era depicted in “Arab Reach”.¹ The 1980s were characterized by oil wealth and major arms deals . By 2025, the partnership encompasses a wider range of sectors, including technology, renewable energy, and sustainable infrastructure . This evolution reflects Saudi Arabia’s Vision 2030 and the global shift towards a more diversified and sustainable economy.¹⁴

Global events and internal transformations within Saudi Arabia have shaped this evolving relationship.²³ While the core strategic and economic interests remain, new areas of cooperation and occasional tensions have emerged, leading to a more nuanced and multifaceted partnership in 2025.

Conclusion: A Contemporary Islamification

In 2025, the relationship between Saudi Arabia and the United Kingdom has continued the trends observed by Hoag Levins in the early 1980s, particularly the significant presence of Saudi investment and influence in the UK. However, the relationship has deepened and diversified considerably. Economic ties now extend beyond oil to encompass a broader range of sectors aligned with Saudi Arabia’s Vision 2030. The UK’s Muslim population has grown and become more outspoken regarding their intentions for the United Kingdom.

Sources

1. Saudi Arabia–United Kingdom relations – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/Saudi_Arabia%E2%80%93United_Kingdom_relations
2. KSA 2025: A Transformative Year for Investment Opportunities – Kelmer Group, accessed May 8, 2025, https://kelmer.com/ksa-2025-a-transformative-year-for-investment-opportunities/
3. Trade and Investment Factsheet – Saudi Arabia – GOV.UK, accessed May 8, 2025, https://assets.publishing.service.gov.uk/media/67b7121a9ae06ef4a71cf338/saudi-arabia-trade-and-investment-factsheet-2025-02-21.pdf
4. Trade and Investment Factsheet – Saudi Arabia – GOV.UK, accessed May 8, 2025, https://assets.publishing.service.gov.uk/media/68135400ee9d78cbe601180b/saudi-arabia-trade-and-investment-factsheet-2025-05-02.pdf
5. Chasing Saudi’s big bucks? You might have to move there – Sifted, accessed May 8, 2025, https://sifted.eu/articles/saudi-investment-europe-startups-pif
6. Why Saudi Investors Choose UK Property | Select Property, accessed May 8, 2025, https://selectproperty.com/insights/why-saudi-investors-choose-to-invest-in-uk-property/
7. Majority of Saudi Real Estate Investors Focused on UK Properties, Survey Finds, accessed May 8, 2025, https://thefinanceworld.com/saudi-investors-uk-real-estate-opportunities/
8. The Kingdom of Saudi Arabia and United Kingdom Strategic Partnership Council: Economic and Social Pillar Joint Statement (HTML) – GOV.UK, accessed May 8, 2025, https://www.gov.uk/government/publications/united-kingdom-and-kingdom-of-saudi-arabia-strategic-partnership-council-economic-and-social-pillar-joint-statement–2/the-kingdom-of-saudi-arabia-and-united-kingdom-strategic-partnership-council-economic-and-social-pillar-joint-statement-html
9. Saudi Arabia Trade and investment factsheet – GOV.UK, accessed May 8, 2025, https://assets.publishing.service.gov.uk/media/67ee9faf199d1cd55b48c776/saudi-arabia-trade-and-investment-factsheet-2025-04-07.pdf
10. Saudi Arabia Foreign Direct Investment 1970-2025 | MacroTrends, accessed May 8, 2025, https://www.macrotrends.net/global-metrics/countries/sau/saudi-arabia/foreign-direct-investment
11. Foreign direct investment (FDI) in Saudi Arabia – International Trade Portal, accessed May 8, 2025, https://www.lloydsbanktrade.com/en/market-potential/saudi-arabia/investment
12. New Data Paints a Rosier Picture of Saudi Foreign Direct Investment Inflows – AGSIW, accessed May 8, 2025, https://agsiw.org/new-data-paints-a-rosier-picture-of-saudi-foreign-direct-investment-inflows/
13. UK firms should consider dual listings in Saudi Arabia, says British minister – Arab News, accessed May 8, 2025, https://www.arabnews.com/node/2590696/business-economy
14. New UK-Saudi Sustainable Infrastructure Assembly to boost trade flows and champion Vision 2030 – Newsroom City of London, accessed May 8, 2025, https://news.cityoflondon.gov.uk/new-uk-saudi-sustainable-infrastructure-assembly-to-boost-trade-flows-and-champion-vision-2030/
15. Saudi infrastructure needs $1 trillion investment over next decade, says economy minister, accessed May 8, 2025, https://www.bne.eu/saudi-infrastructure-needs-1-trillion-investment-over-next-decade-says-economy-minister-367003/?source=saudi-arabia
16. Saudi Arabia, UK set up sustainable infrastructure assembly to bolster trade | Arab News PK, accessed May 8, 2025, https://www.arabnews.pk/node/2596906/world
17. PIF | Home | Public Investment Fund, accessed May 8, 2025, https://www.pif.gov.sa/
18. Public Investment Fund – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/Public_Investment_Fund
19. The Saudi Economy in 2025 – Jadwa Investment, accessed May 8, 2025, https://www.jadwa.com/sites/default/files/2025-02/Saudi%20Economy%20-%202025.pdf
20. Saudi investment in the North of England to soar in 2024 | DWF Group, accessed May 8, 2025, https://dwfgroup.com/en/news-and-insights/insights/2023/12/saudi-investment-in-the-north-of-england-to-soar-in-2024
21. Why Saudi Arabia Makes Sense for Business Expansion – Cranbrook Legal, accessed May 8, 2025, https://www.cranbrooklegal.com/why-businesspeople-should-look-to-saudi-arabia-to-expand-their-business/
22. UK-Saudi trade ties deepen as 50 British firms set up regional HQs in Kingdom – Arab News, accessed May 8, 2025, https://www.arabnews.com/node/2597580/business-economy
23. Saudi Arabia: Introductory country profile – UK Parliament, accessed May 8, 2025, https://researchbriefings.files.parliament.uk/documents/CBP-9828/CBP-9828.pdf
24. Saudi Arabia Foreign Direct Investment Report, accessed May 8, 2025, https://misa.gov.sa/app/uploads/2024/04/saudi-arabia-foreign-direct-investment-report-january-2024.pdf
25. Financial Sector Development Program, accessed May 8, 2025, https://www.vision2030.gov.sa/media/0ztlddeu/financial-sector-development-program-delivery-plan-en.pdf
26. Saudi Arabia 2025: A Growing Hub for Business, Tech & Innovation – Northman & Sterling, accessed May 8, 2025, https://northmansterling.com/saudi-arabia-2025-a-growing-hub-for-business-tech-innovation/
27. United Kingdom (GBR) and Saudi Arabia (SAU) Trade | The Observatory of Economic Complexity, accessed May 8, 2025, https://oec.world/en/profile/bilateral-country/gbr/partner/sau
28. Exporting from the UK to Saudi Arabia: A market guide, accessed May 8, 2025, https://www.great.gov.uk/markets/saudi-arabia/
29. UK firms should consider dual listings in Saudi Arabia, says British …, accessed May 8, 2025, https://www.arabnews.com/node/2590696
30. UK firms should consider dual listings in Saudi Arabia, says British minister – Arab News, accessed May 8, 2025, https://www.arabnews.com/node/2590696/%7B%7B
31. Saudi Arabia, UK Hold Business Roundtable, accessed May 8, 2025, https://spa.gov.sa/en/N2222438
32. UK-Saudi Investment & Partnership Summit, accessed May 8, 2025, https://www.sbjbc.org/uk-saudi-investment-partnership-summit/
33. Open Call for Sponsorship: GREAT FUTURES 2025 – Events, accessed May 8, 2025, https://www.events.great.gov.uk/website/16002/home/
34. House of Commons – The UK’s relations with Saudi Arabia and Bahrain – Foreign Affairs Committee – United Kingdom Parliament, accessed May 8, 2025, https://publications.parliament.uk/pa/cm201314/cmselect/cmfaff/88/8807.htm
35. Saudi Arabia, the UK Emphasize Importance of Strengthening Economic Partnership and Increasing Investment, accessed May 8, 2025, https://spa.gov.sa/en/N2224673
36. Saudi Arabia and UK Strengthen Economic Ties, Target $37.5B Trade by 2030 – Fintedu, accessed May 8, 2025, https://fintedu.com/blog/index.php?entryid=2950
37. Saudi Arabia, UK agree to strengthen ties, increase trade exchange to $37.5bln by 2030, accessed May 8, 2025, https://www.zawya.com/en/economy/gcc/saudi-arabia-uk-agree-to-strengthen-ties-increase-trade-exchange-to-375bln-by-2030-rx1s61wa
38. Saudi Arabia, the UK Emphasize Importance of Strengthening Economic Partnership and Increasing Investment, accessed May 8, 2025, https://www.spa.gov.sa/en/N2224673
39. Saudi Arabia and the UK – GOV.UK, accessed May 8, 2025, https://www.gov.uk/world/saudi-arabia/news
40. Saudi Arabia and UK forge deeper ties in trade, tourism and …, accessed May 8, 2025, https://www.arabnews.com/node/2582293/saudi-arabia
41. Saudi Arabia: Introductory country profile – The House of Commons Library, accessed May 8, 2025, https://commonslibrary.parliament.uk/research-briefings/cbp-9828/
42. The UK-Saudi Arabia Relationship: A Closer Look – Chatham House, accessed May 8, 2025, https://www.chathamhouse.org/events/all/members-event/uk-saudi-arabia-relationship-closer-look
43. The UK’s relations with Saudi Arabia and Bahrain – United Kingdom Parliament, accessed May 8, 2025, https://publications.parliament.uk/pa/cm201314/cmselect/cmfaff/88/88.pdf
44. Shifting Sands: The UK’s Role in a Changing Gulf | Royal United Services Institute – RUSI, accessed May 8, 2025, https://www.rusi.org/explore-our-research/publications/commentary/shifting-sands-uks-role-changing-gulf
45. Foreign relations of Saudi Arabia – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/Foreign_relations_of_Saudi_Arabia
46. A Soft Touch? Human Rights and the UK-Saudi Relationship, accessed May 8, 2025, https://alqst.org/uploads/Human-Rights-and-the-UK-Saudi-Relationship.pdf
47. The UK-Saudi Arabia security relationship | The Policy Institute – King’s College London, accessed May 8, 2025, https://www.kcl.ac.uk/policy-institute/research-analysis/the-uk-saudi-arabia-security-relationship
48. Security cooperation with Saudi Arabia: Is it worth it for the UK? – King’s College London, accessed May 8, 2025, https://www.kcl.ac.uk/policy-institute/assets/uk-saudi-arabia-report.pdf
49. BRITAIN AND SAUDI ARABIA: POLICY RECOMMENDATIONS – cloudfront.net, accessed May 8, 2025, https://d3n8a8pro7vhmx.cloudfront.net/lchr/pages/70/attachments/original/1568971038/britain-and-saudi-arabia-policy-recommendations.pdf?1568971038
50. UK ties with Saudi Arabia: costs and alternatives – IPPR, accessed May 8, 2025, https://www.ippr.org/articles/uk-ties-with-saudi-arabia-costs-and-alternatives
51. CAAT – A shameful relationship: UK complicity in Saudi state violence, accessed May 8, 2025, https://caat.org.uk/publications/a-shameful-relationship-uk-complicity-in-saudi-state-violence/
52. The UK arms trade in 2025 – controversies and challenges, accessed May 8, 2025, https://www.forumarmstrade.org/blog/the-uk-arms-trade-in-2025-controversies-and-challenges
53. Israel and Saudi Arabia buy influence in Britain as the lobbying scandal grows, accessed May 8, 2025, https://www.middleeastmonitor.com/20210415-israel-and-saudi-arabia-buy-influence-in-britain-as-the-lobbying-scandal-grows/
54. UK ‘in discussion’ with France and Saudi Arabia over Palestinian …, accessed May 8, 2025, https://www.middleeasteye.net/news/uk-discussion-france-saudi-arabia-palestinian-statehood
55. UK in talks with France and Saudi Arabia over recognising a Palestinian state – Reddit, accessed May 8, 2025, https://www.reddit.com/r/geopolitics/comments/1kcb5js/uk_in_talks_with_france_and_saudi_arabia_over/
56. Global Banking & Markets: Saudi Arabia 2025, accessed May 8, 2025, https://globalbankingmarkets.com/events/capital-markets-saudi-arabia
57. You never listen to me: The European-Saudi relationship after Khashoggi, accessed May 8, 2025, https://www.cer.eu/publications/archive/policy-brief/2019/you-never-listen-me-european-saudi-relationship-after
58. Yemen’s Tragedy: War, Stalemate, and Suffering | Council on Foreign Relations, accessed May 8, 2025, https://www.cfr.org/backgrounder/yemen-crisis
59. Islam in the United Kingdom – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/Islam_in_the_United_Kingdom
60. Muslim Population by Country 2025 – World Population Review, accessed May 8, 2025, https://worldpopulationreview.com/country-rankings/muslim-population-by-country
61. British Muslims in Numbers: Census Report Summary 2025 | Muslim Council of Britain : r/reformuk – Reddit, accessed May 8, 2025, https://www.reddit.com/r/reformuk/comments/1jizqbp/british_muslims_in_numbers_census_report_summary/
62. Muslims: 6 Jan 2025: Hansard Written Answers – TheyWorkForYou, accessed May 8, 2025, https://www.theyworkforyou.com/wrans/?id=2024-12-19.HL3696.h
63. MCB report on census data shows progress and challenges facing British Muslims, accessed May 8, 2025, https://islamchannel.tv/mcb-report-on-census-data-shows-progress-and-challenges-facing-british-muslims/
64. British Muslims in Numbers: Census Report Summary 2025 | Muslim Council of Britain : r/uknews – Reddit, accessed May 8, 2025, https://www.reddit.com/r/uknews/comments/1jiu9aw/british_muslims_in_numbers_census_report_summary/
65. Census Report Summary – Muslim Council of Britain, accessed May 8, 2025, https://mcb.org.uk/wp-content/uploads/2025/03/Census-Report-Summary-2025-.pdf
66. Islam in England – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/Islam_in_England
67. Muslim population in the UK in 2050: an increasing and fast trend – thebritishtribune, accessed May 8, 2025, https://thebritishtribune.com/2024/10/19/muslim-population-in-the-uk-in-2050/
68. BRITISH MUSLIMS – Muslim Council of Britain, accessed May 8, 2025, https://mcb.org.uk/wp-content/uploads/2024/01/MCB-Striving-For-Fairness-Full-Report.pdf
69. How Many Muslims? | – British Religion in Numbers, accessed May 8, 2025, https://www.brin.ac.uk/how-many-muslims/
70. A review of survey research on muslims in Great Britain – Ipsos, accessed May 8, 2025, https://www.ipsos.com/sites/default/files/ct/publication/documents/2018-03/a-review-of-survey-research-on-muslims-in-great-britain-ipsos_0.pdf
71. Muslim population on the rise in UK; Christians now in minority, reveals Census | Report, accessed May 8, 2025, https://m.youtube.com/watch?v=SX1gHBxvjX0&pp=ygUJI3Vrbm93bnJj
72. Muslims and Islam in the UK – CREST Research, accessed May 8, 2025, https://crestresearch.ac.uk/resources/british-muslims-full-report/
73. Muslim population in the UK – Office for National Statistics, accessed May 8, 2025, https://www.ons.gov.uk/aboutus/transparencyandgovernance/freedomofinformationfoi/muslimpopulationintheuk/
74. The Future Global Muslim Population – Pew Research Center, accessed May 8, 2025, https://assets.pewresearch.org/wp-content/uploads/sites/11/2011/01/FutureGlobalMuslimPopulation-WebPDF-Feb10.pdf
75. How Many Muslims in the UK: Why to Know? – The British Tribune, accessed May 8, 2025, https://thebritishtribune.com/2024/11/09/the-worldwide-growth-of-islam-how-many-muslims-in-the-uk/
76. The Future of the Global Muslim Population | Pew Research Center, accessed May 8, 2025, https://www.pewresearch.org/religion/2011/01/27/the-future-of-the-global-muslim-population/
77. British Muslims in Numbers: Census Report Summary 2025 | Muslim Council of Britain, accessed May 8, 2025, https://mcb.org.uk/resources/censussummary2025/
78. East London Mosque – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/East_London_Mosque
79. Al-Sudais opens mosque in UK | Arab News, accessed May 8, 2025, https://www.arabnews.com/node/956651/%7B%7B
80. PRESS RELEASE: Dispatches – ‘Undercover Mosque’, accessed May 8, 2025, https://embassies.mofa.gov.sa/sites/uk/EN/AboutDiplomaticMission/MissionNews/Pages/NewsArticleID59235.aspx
81. International propagation of Salafism and Wahhabism by region – Wikipedia, accessed May 8, 2025, https://en.wikipedia.org/wiki/International_propagation_of_Salafism_and_Wahhabism_by_region
82. Petition Stop all foreign funding of Mosques in the UK., accessed May 8, 2025, https://petition.parliament.uk/petitions/112877
83. UK imam fired from Saudi-funded mosque for criticising Saudi royal family | Middle East Eye, accessed May 8, 2025, https://www.middleeasteye.net/news/uk-imam-fired-saudi-funded-mosque-criticising-saudi-royal-family
84. Former UK envoy: Saudi Arabia funds extremist mosques in Europe | The Times of Israel, accessed May 8, 2025, https://www.timesofisrael.com/former-uk-envoy-saudi-arabia-funds-extremist-mosques-in-europe/
85. Foreign Funded Islamist Extremism in the UK – FARA eFile, accessed May 8, 2025, https://efile.fara.gov/docs/6170-Informational-Materials-20171220-629.pdf
86. Influence Abroad: Saudi Arabia Replaces Salafism in its Soft Power Outreach, accessed May 8, 2025, https://carnegieendowment.org/research/2024/12/influence-abroad-saudi-arabia-replaces-salafism-in-its-soft-power-outreach
87. The UK-Saudi relationship: to engage or not to engage? – UK in a …, accessed May 8, 2025, https://ukandeu.ac.uk/the-uk-saudi-relationship-to-engage-or-not-to-engage/
88. Foreign Affairs, GCC, Oil – Saudi Arabia – Britannica, accessed May 8, 2025, https://www.britannica.com/place/Saudi-Arabia/Foreign-affairs
89. Sweden and Saudi Arabia: Lessons for the UK, accessed May 8, 2025, https://una.org.uk/magazine/2017-2/sweden-and-saudi-arabia-lessons-uk