Deputy Prime Minister Oliver Dowden's speech to the Future Investment Initiative: 24 October 2023
Deputy Prime Minister Oliver Dowden's speech to the Future Investment Initiative in Riyadh.
Today’s theme is ‘defining dynamism amid global shocks’.
And there could be no more apt place to discuss dynamism than Saudi Arabia.
The pace of change in the Kingdom is dizzying:
Asserting global leadership from the Gulf…
…rocketing up the rankings for ease of doing business…
…leapfrogging the world’s largest economies…
…embracing technological change…
… and transforming an economy fuelled by oil… into one powered by renewables…
…making Vision 2030 not just a vision, but a reality.
That is true dynamism: embracing change, and leading the charge.
With your megacities and giga-projects, Saudi is not just adopting clean technologies but pioneering them…
…delivering solutions that we will all be using in the future.
So That’s why the UK is proud to partner with you in a huge array of areas, such as financial services, clean energy, urban regeneration, academia, defence, sports, e-gaming and more.
Truly a partnership for the future.
AGE OF SHOCKS
But we do so in a world where shocks have become the new norm.
We rightly refer to them as global shocks because their impact ripples from the epicentre right across our planet.
The great financial crisis … the Covid pandemic … Russia’s invasion of Ukraine …
…Record temperatures and devastating natural disasters…
…and, of course, the brutal strike into the heart of Israel by Hamas terrorists just two weeks ago…
…the very worst of humanity.
Thousands of people have died horrifically… unnecessarily.
Tens of thousands more are injured, or are in mourning.
And millions are now living in fear of the consequences.
This has caused untold misery and has led to deep, widespread insecurity.
And we stand with all innocent victims of this conflict.
Urging respect for international humanitarian law…
And for parties to take every possible step to avoid harming civilians.
And we welcome ongoing efforts to open up humanitarian access to Gaza…
…we have pledged millions extra in aid…
…and we remain committed to the two state solution.
Britain stands together to reject terror, hate and prejudice.
…and to reset the path to peace and long-term stability.
TRADITIONAL SECURITY
And as the Deputy Prime Minister of the United Kingdom, the Prime Minister has tasked me personally to drive cross-Government resilience towards shocks of all kinds.
Understanding the nature of the threats we face today…
…and scanning the horizon to predict the threats we may face tomorrow.
The first duty of every government is to protect their civilians.
Of course, our first line of defence is always our armed forces.
Those brave men and women are our resilience personified.
And the UK and Saudi Arabia have a proud partnership in security which stretches back into our history…
…sharing intelligence, exchanging military hardware, training alongside one another…
…and continuing into the future with our world-leading Typhoon jets.
ECONOMIC SECURITY (AND TECH SHOCKS)
But increasingly, the ripples of recent global shocks…
…reverberate in an economic sense…
…disrupting supply chains… driving up energy prices… and causing food shortages.
And it on this economic front, where I am leading the UK’s charge to be out in front, in terms of our resilience…
…developing and retaining critical domestic capabilities…
…screening investment into UK companies…
…protecting Government procurement from national security threats…
…and better understanding our supply chains.
As we scan the horizon, we see that rapid technological advancements will only make this task more urgent.
We’ve had a glimpse into this future…
…with cyberattacks bringing public services to a halt…
…and ransomware wiping millions off companies’ share prices.
Deepfakes have duped consumers…
…bots have interfered in elections…
…and intellectual property has been stolen from businesses and academic institutions.
Now so far, these have been relative skirmishes…
…wrought by an unholy alliance between hostile states and non-state actors.
But with the enormous potential of artificial intelligence and quantum computing…
…there is a very real possibility that the world’s next shock will be a tech shock.
And so next week the United Kingdom will be convening the world’s leading nations and pioneering AI companies for the first global frontier AI safety summit.
These emerging technologies represent exciting opportunities.
…they exist at the cutting edge of development, often yet to be commercialised and with unknown end applications…
But we also know that hostile state actors are actively seeking these technologies for their own competitive advantage…
… or even to enhance their military capability.
And the most valuable commodities to both businesses and nations are increasingly the source code… the technical designs… or other - intangible - intellectual property that underpins innovation.
Where they have a military or dual-use application, traditional means of controlling these transfers are often simply not enough.
These Intangible products can now be exported in a second - attached to an email…
….with no customs official to check any documentation…
…nor a list of multilaterally agreed product categories to check against…
…because these technologies have only just been invented…
…often in small university spin-outs, rather than the established defence contractors used to working with Government.
This dynamism in the tech sphere, must be met with dynamism within Government.
Now I know that ‘Dynamism’ and ‘Government’, not, perhaps, two words which you often put together…
But we cannot afford not to be…
This is why I am reviewing our tools to ensure they are fit for purpose:
-
Examining our export regime controls, to ensure that it is striking the right balance for emerging technologies relevant to national security…
-
Exploring other paths through which this sensitive technology can leak out unchecked such as through outbound investment flows…
-
And working with academic institutions and start-ups to ensure they are alert to the risks, and have the toolkit to protect themselves.
We need to build a policy environment that provides the private sector with the confidence to innovate…
Confidence to build partnerships…
Confidence to grow.
Economic security should never be seen as a constraint on growth.
It is an enabler of it.
UK-KSA ECONOMIC PARTNERSHIP
So just as allies work together on physical security, so we need to work together to build economic security.
Just as important as the collaboration between nation states is the partnership between Government and business.
Which is why, earlier this year, we established the National Protective Security Authority within MI5 - so that our security services can support business in understanding and protecting themselves against the threats they face.
The partnership between the UK and Saudi Arabia is a fine example of the collaboration we need.
We made the green finance deal made last year - ensuring we protect our energy needs for the future…
We’ve made an agreement on critical minerals this year - enhancing our collaboration and exploring new sources of supplying these elements that are so vital to our future prosperity and national security.
And through to next year I will personally be prioritising building the bond between our two kingdoms.
So today I can announce that I will be leading a new strand of engagement with the Kingdom of Saudi Arabia to enhance our cooperation and mutually-beneficial investment relationships, building on similar relations across the gulf.
The partnership between our kingdoms has helped to shape the world we live in, and will be a linch-pin of shaping the future through to 2030.
But just as important as the collaboration between nation states, is the partnership between government and business.
So I will be Chairing a new Public-Private Forum between Government and business on economic security challenges… with the first meetings later this year.
And I want to be very clear to all of you, that my door is always open to investors to discuss our economic security agenda.
And our first task when Prime MInister Rishi Sunak was to restore the predictability and stability that investors so cherish in the United Kingdom.
Our task now is to drive growth, jobs, prosperity and investment. And I know that the Kingdom of Saudi Arabia will be a key partner in that mission.
PROSPERITY AGENDA
But we should also never underestimate how much our peace, stability, and resilience to shocks are underpinned by our prosperity.
A strong, growing economy doesn’t just allow you to invest in your armed forces….
…it also allows you to deliver for your people…
…it is a signal to the world that you are a serious partner and a key player.
Those who will succeed in this age of uncertainty, as new economic powers vie for pole position…
…are those with the fastest-growing, most vibrant, dynamic economies.
And those nations – and those businesses – will get to shape the new global order.
And the UK is laser-focused on that prosperity agenda.
We are wide open for business…
…a world-leader in climate solutions, life sciences and creativity…
…a wonderful place to invest and innovate…
…and a partner with whom to seize technological opportunities.
Happily these areas where we excel are the areas where Saudi wants to grow.
So your Vision 2030 is our vision too.
We’re by your side…
…with scores of fund managers flocking to Riyadh…
…and hundreds of UK businesses operating all across Saudi.
Meanwhile, of course London’s global financial centre remains committed to being the preferred hub for this part of the world…
…thousands of Saudi students and tourists are in Britain…
…and Saudi investment is benefitting every corner of our country.
That is all part of a deepening partnership with the wider GCC – the UK’s 7th largest export market…
…and with whom we hope to increase trade still further through a free trade agreement.
Geopolitical shifts are a great challenge to all our economies…
…but we can turn them into an opportunity to build a new world order based on rules, competition, open markets, innovation and investment.
Because that is the definition of dynamism: turning challenges into opportunities.
Not ignoring the threat of climate change but seizing the opportunities we have to build a green future.
Not shunning artificial intelligence but using it to solve some of the greatest problems we face.
Not turning inwards as new powers emerge and challenges arise, but forging new alliances and strengthening old ones.
That is how we will withstand shocks, build resilience and embrace opportunities for all our people.
Thank you.