Startup Saudi – Technology and innovation are turning Saudi Arabia into the perfect partner for the City
The international ambassador for the UK’s financial industry is excited about Saudi Arabia. Michael Mainelli, the Lord Mayor of the City of London, tells Inside Saudi that the country is quickly becoming a hub of innovation in infrastructure and technology. In this exclusive interview with Sir Martyn Lewis, one of Britain’s most distinguished broadcasters, the Lord Mayor explains why Saudi is the perfect partner for British firms seeking a springboard into new markets in the Middle East, Africa and India.
Sir Martyn Lewis – Lord Mayor, what were your main impressions from your recent visit to Saudi?
Michael Mainelli, Lord Mayor of London – To me, the most amazing thing about Saudi today is its vibrancy. This is definitely a country which is not like the country I was first exposed to nearly 50 years ago in the mid-to-late 1970s. During my latest visit for the World Economic Forum Special Meeting on 28-29 April, it was clear that this is now a country that is dynamic, full of youth and energy, very much on the cutting edge of science, seeking new knowledge and well connected with the world. It was a real delight to be there.
Sir Martyn – Did the change surprise you?
Lord Mayor – Well, I have been travelling to Saudi a little bit it in recent years, so it wasn’t a surprise, but the continued pace of change is very, very welcome. There has been change in a variety of areas, including in the relationships between Saudis and business, Saudis’ approach to work, and their desire to get ahead. Many people seem to take swipes at Saudi. However, I’ve felt, and I’ve felt for some time now, that we have to stop greenhouse gas emissions, and that Saudi is an important part of the transition plan, and an important part of a new net zero economy.
Sir Martyn – You’ve talked about the change in relationships to work. What was that change that you saw and how important do you think it is in terms of persuading city companies that there is business to be done in Saudi?
Lord Mayor – As Lord Mayor of the City of London, I spend a lot of time on the leading edge of business. To be frank, most businesses working are working, they don’t need me and my team. We tend to be either out there making new connections or trying to drive a little wedge to open up opportunities for both Saudis and British alike. In the course of all this, we are looking at what is happening in young companies. Not so long ago, I would have said that many young Saudis would have seen their future careers in working for the state. That is certainly not what I feel now.
I will give you one quick example, which is the King Abdulaziz Centre for Science and Technology (KACST). It has an amazing “garage”, as they call it, and they have taken this garage and converted it into a tech centre with, I believe, nearly 200 businesses in it. And here is a whole bunch of people, from all over the world, wanting to work hard, to make a difference, to make money as well, but also mostly wanting to make a difference. And they were looking at, I would say, just about every single one of the United Nations’ seventeen sustainable development goals, so clearly things to do with climate change, but also to do with new, clean energy systems and new ways of constructing buildings. It was young people really wanting to work and not to have some state-sponsored sinecure.
Sir Martyn – And have you seen a focus on those kind of things in any other country in your travels? Or is Saudi bringing it all together in the most dynamic and promising way that you have found?
Lord Mayor – I have seen a number of countries where that vibrancy has come together. Trips to India, in particular, I would mention as an eye opener to me. Even in Japan, despite the ageing population, there is a real area of fintech in that space. Obviously, there is a lot of new science and technology in America. However, I wouldn’t want any country to become complacent and feel that they were leading the pack and could kind of back off a bit. But Saudi is right up there with the leaders and I think that is fantastic.
Sir Martyn – Right, and you’ve said that you want to make London a solution hub to the major global challenges of the day. Where does Saudi Arabia fit in to that? How do you prioritise Saudi Arabia?
Lord Mayor – Well my theme this year is what I call “connect to prosper”, and I am trying to celebrate the many knowledge miles that flow through the City of London, which we affectionately term “The Square Mile”. These knowledge miles flow out around the world: they are not just here for us in London, and Saudi is an important node on that universal network.
The Saudis have got quite a bit to teach us on hydrogen economy and large scale infrastructure projects. They are experimenting in areas in urban planning. I could pick Masdar, a leading Saudi building and construction materials company, as an example, but we could also look to Neom and some of the other bigger city projects, such as Diriyah, where they are really exploring the boundaries of urban development and living
I have also taken the point of view that we, as a society, have laid out, as I mentioned earlier, the seventeen United Nations sustainable development goals, which span a whole wide range of things from gender inequality to poverty and hunger. I like to look at it as if we were a form of consultancy salesperson: the world has said “this is our problem”, and as a consultant you know that if the client ever says to you, “this is exactly what my problem is and you can solve it”, then you’ve got the sale. So modestly, we here in London have been told by our client, the world, that they would like these seventeen areas solved, and they told us that ten years ago. So, we are trying to do that through a very large series of online lectures called “Knowledge Miles”. We are also doing it through 25 coffee colloquies here at Mansion House (my headquarters as Lord Mayor) on all 17 sustainable development goals.
It is not a question of “we can’t do it alone”. We can only do it all together and Saudi is a very, very important part of that. I just hope that London is a focal point too, but I equally can see from my trip there that Saudi, like many other nations, is fundamental to achieving the positive changes we all want.
Sir Martyn – There is a major trade and government delegation in Saudi this week. Is it down to the individual companies to follow up on that, or is there more that you and the British government can do as catalysts in all this?
Lord Mayor – Is it up to the individual organisations? Well I’d start at the bottom. It is up to people to want to make change and those people work in organisations. Next level up is: yes, it is up to the organisations to develop those connections and to keep them going. However, you make an exceptionally good point. Government has a serious role in enabling those organisations. So, firstly, I have always thought it is the government’s job to identify some of the connections. It is our job here at Mansion House to identify some of the connections, and to gently nudge people together. Hence the theme: “connect to prosper.” Secondly, continuity is key. One-off events need a little bit of help to generate more events, so you want continuity to make sure that a one-off event isn’t a one-off – it will be followed by a sequence.
We are doing a number of things on science and technology connections and financial connections. I have mentioned fintech. I am hoping that we do branch out across all areas of science and technology, which we seem to be doing quite well. Where government involvement has been particularly good, though, has been on infrastructure bridges, looking at ways in which both nations can share their plans and see where they can complement each other.
That’s not just about money. It is very clear that a lot of people look at the Middle East as a place of petrodollars. It is far more than that now. The Saudis have got quite a bit to teach us on hydrogen economy and large scale infrastructure projects. They are experimenting in areas in urban planning. I could pick Masdar, a leading Saudi building and construction materials company, as an example, but we could also look to Neom and some of the other bigger city projects, such as Diriyah, where they are really exploring the boundaries of urban development and living. So, I think there is a lot that we can learn from them, and they have a lot to learn from us. Some of it in fundamental science and technology, some of it in aspects of older cities, which don’t quite apply to some of the brand new cities, and some of it in terms of where you are able to structure lasting and durable governance frameworks.
Sir Martyn – You have laid out the areas, in particular on the environmental front, where opportunity lies. How will Saudi Arabia and the City of London benefit from potential deals and contracts?
Lord Mayor – We have always taken the view in the City of London that all deals have to be mutually beneficial. Capital, talents, brain power and connections flow both ways. Is there a lot of money to be made mutually? Definitely! That can be from British firms. I know of a couple, who are looking to Saudi as a springboard, throughout the Middle East but also into India and also, in particular, eastern Africa, so that is one approach where using Saudi as a hub will help the Saudi economy enormously. It is not about access to Saudi capital. It is actually about access the Saudi market and to this entire region, and beyond, through Saudi.
Sir Martyn – And what are the attractions of Saudi as the location? I mean what’s the “big deal” that will make people think, “I am going to Saudi”, rather than locations in Europe?
Lord Mayor – Saudi has many advantages over Europe if you are trying to locate in eastern Africa, the Middle East and India. So, it has some natural locational advantages. The second thing, of course, is that the Saudis understand the area. Thirdly, there are definitely areas, particularly in terms of resources, where Saudi has some competitive edges. Those resources can be physical: I am thinking for example of a carbon rock project, where people are grinding up rocks to sequester carbon. Obviously, there is also the petrochemicals industry, but there is also abundant wind and sun, which leads you to the solar and the wind power stations. Saudi has also opened its research and development facilities so that they are almost free to a lot of startups, and this, I think, goes far beyond computing, which people tend to think about, and into areas like genuine chip design, carbon pressing, space equipment, depart scale metrology and quantum computing. There are a lot of areas where the access to resources of a technical nature is enormously useful. So, I think Saudi is a rich mix, certainly for a country its size.
Sir Martyn – And going back to what you were talking about earlier, about the way the Saudi has changed. Are you saying that all the potential difficulties and obstacles that were there in the past with respect to doing business have gone?
Lord Mayor – I would argue that the attitude of the government has changed. The Saudi approach at the moment seems to be one of genuinely encouraging innovation and genuinely encouraging risk. The Saudis recognise that people should make money from that and are being a lot more open than they used to be about these being opportunities for Saudi people as a whole. So, I think a lot of positive moves have come, but I wouldn’t say that all the problems are out of the way. Yet again, I wouldn’t say that about Britain either.
Sir Martyn – Lord Mayor, thank you very much indeed.
Lord Mayor – Thank you Sir Martyn