The United Kingdom is an international financial hub and one of the world’s largest sources of funding. It’s a global gateway for financial and professional services firms, offering an open financial centre with unparalleled international networks, ample liquid capital, and a constant presence of international investors.
The United Kingdom ranks first in innovation in financial and professional services. Its broad knowledge ecosystem includes more than 40 scientific societies, 70 institutions of higher education, and 130 research institutes.
Companies have access to this unique ecosystem of innovation, which combines strong policy support, sustainable financing, access to global markets, and technological efficiencies.
The financial and professional services sectors, gathered in the City of London—often referred to just as 'the City'—employ around 2.3 million people across the country, with two-thirds of these jobs outside London.
Today, the City alone employs 615,000 people, and residents make up around 2% of the UK population and contribute 10% of the GDP.
In the beautiful historic mansion in London’s financial district, opposite the Bank of England, the new mayor of the City, Alderman Michael Mainelli, the Lord Mayor of the City of London, sat down with Al Majalla.
He acts as an international ambassador of sorts in the financial and professional services sector and heads the City of London Corporation (CLC), the governing body of the famous financial district in the UK capital. The mayor and other key members of the CLC ensure that the City’s interests are reflected in local and national policies.
No one takes precedence over the monarch within City limits, and during his tenure, the lord mayor hosts heads of state and governments and other high-level foreign visitors on behalf of King Charles III and His Majesty’s Government.
Mainelli looks forward to strengthening the world’s economic ties with the United Kingdom, creating new business opportunities, and promoting the country as a leading global destination for foreign investment.
Believing in the importance of building partnerships for success, he will promote his Connect to Prosper initiative, which will bring together thought leaders in science, academia, and business to help the City find solutions to global challenges.
Ahead of his trip to Riyadh, Mainelli applauded Saudi Arabia’s Vision 2030, calling it “amazing and ambitious.” The Lord Mayor, who will participate in the World Economic Forum and meet with ministers, officials, dignitaries, and businesspeople, highlighted some key sectors in which the United Kingdom can invest.
The Gulf is very vital for the United Kingdom and is the country’s fourth-largest trading partner after the United States, China, and Switzerland, with a total trade volume of £65bn, of which £17.4bn is with Saudi Arabia, which has investments in the United Kingdom amounting to £65bn.
The Gulf provides an important gateway to the Indo-Pacific, a region that accounts for more than 40% of the global GDP and contains some of the world’s fastest-growing economies. The digital transformation in Gulf countries represents a fantastic opportunity for the United Kingdom’s leading digital sector.
Emphasising the importance of cross-learning, Mainelli says that not only can Saudi Arabia learn a lot from British expertise, but the UK can also learn a lot from Saudi expertise in various industries. He also talks about the importance of AI and how companies are increasingly turning to technology as central to their business model.
Below are key excerpts from the interview.
What new developments in London's Financial District should investors be aware of in 2024? What is the current investment climate like, especially after Brexit?
London has always excelled in science, technology and new markets. Investors may be concerned about Brexit, but although we lost some jobs after Brexit in 2016, we’ve actually grown.
Where we used to have 525,000 people working in London in 2016, we now have 615,000. Although this constitutes about 2% of the UK’s population, our contribution is 10% of the GDP.
In 2016, we managed just over 12% of global assets; eight years later, we managed just under 15%. This means that although the UK comprises just 1% of the world's population, it manages 15% of the world’s assets.
If you want to break down the areas of expertise, I would say that London’s workforce is pretty much split evenly into thirds—one-third work in finance, another third in science, engineering, and technology, and the last third in arts, media, culture, and, oddly enough, shipping.
Our multidisciplinary expertise puts us at the front edge of most areas people are interested in investing in.
When it comes to investing in the city, it's not that we need the money; it’s that we're really a big switching house globally.
Large-scale investors seeking a good international perspective will bring their money here. We will then distribute it to Europe, Africa, the Middle East, South America, the US, China, and Australia/Asia.
Of course, UK projects and infrastructure projects are also of interest. But our role is very much a neutral, global role, trying to get the best results for our clients who come here to invest.
What is your stance on the turmoil in the Middle East right now? Particularly the attacks on global shipping in the Red Sea?
We fully support peace and whatever mechanisms will lead to that. Clearly, the Red Sea situation is bad for trade, but more importantly, we want to see the situation in Palestine, Israel, and the Middle East calm down.
Can trade play a role in managing conflict?
Undoubtedly. The more you trade with people, the more you co-invest with people, and the greater your web of connections, the less likely conflicts will arise.
While people are always looking for the next new thing to invest in—such as AI, for example—the more important thing is that we invest somewhere together.
For example, if we partner up to invest in Zambia. You know Zambia really well, and I know wind farming really well; I learn from you, and you learn from me. The project then has a greater chance of success.
