PM lands in Middle East to discuss global economy
The prime minister is calling for the Gulf states to take further moves to help ease instability in the global economy
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Sunday, 02, Nov 2008 12:01
Prime minister Gordon Brown is holding talks with business leaders in the Middle East as part of efforts to encourage the oil-rich states to make further contributions to improving global financial stability.
Mr Brown is travelling with business secretary Lord Mandelson, climate change secretary Ed Miliband and a delegation of senior UK businessmen on the four-day trip.
He met with Saudi ruler King Abdullah on Saturday and is expected to call for greater stability in the global oil price as a means to reducing financial instability.
Speaking about the purpose of the visit, the prime minister said: “My main focus is on how we can help British families through this downturn but because they are global problems they require global solutions.
"The Saudis and other countries in the gulf states are very important, they are the countries with great revenues and oil wealth. What starts with negotiations in Saudi and elsewhere can end with great benefits for families in Britain.
"Everybody has got a part to play in solving the world downturn," he added.
One of the issues the head of government has said he will discuss is increasing the reserves available to the International Monetary Fund (IMF).
Concerns have been expressed that the £150 billion held by the IMF, which is tasked with maintaining international financial stability, may not be enough after emergency assistance was provided to Hungary, Iceland and Ukraine.
Pakistan has also said it will seek help from the IMF soon to deal with its dwindling foreign currency reserves.
Speaking earlier this week, Mr Brown said: "It's the countries that have got substantial reserves, the oil-rich countries and others who are going to be the biggest contributors to this fund."
However, increased investment in the UK by Middle Eastern sovereign wealth funds has also raised doubts about interference in UK affairs.
Speaking to the Associated Press about the issue, business secretary Lord Mandelson said: "They want to generate a good return, they are the first to steer clear of politics.
"We would provide a good home in London for their operations in Europe," he added.
The prime minister will also attend a special EU council next week on the financial crisis before heading to the global summit to be held in the US on 15th November.