Foreign Investment in UK: Gulf States
The question
To ask the Chancellor of the Exchequer, what discussions she has had with the Bank of England on managing potential financial stability risks from increased Gulf investment in UK markets.
Answered by Lucy Rigby
Increased investments from the Gulf states represent significant opportunities for the UK, supporting growth and innovation across the economy. The Chancellor’s recent visit to Saudi Arabia promoted the UK’s modern Industrial Strategy, advanced Free Trade Agreement negotiations with the Gulf Cooperation Council, advocated for deeper UK-Saudi capital market connectivity, and unveiled a two-way investment package worth £6.4 billion.
Regarding potential financial stability risks, the Chancellor and the Governor of the Bank of England regularly discuss the financial stability outlook, including as required under the Bank of England Act 1998. Readouts of their discussions are published on GOV.UK.
The Bank’s Financial Policy Committee (FPC), which is responsible for identifying and addressing systemic risks to the financial system as a whole, published its most recent Financial Stability Report in July 2025.
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