The government is closing in on a multibillion-pound investment deal with Saudi Arabia that would provide a backdrop for crucial talks over the Gulf state’s oil production.

Sky News understands ministers have been working for weeks to finalize a new Sovereign Investment Partnership (SIP) with Riyadh which would replicate an unveiled £10bn alliance with an Abu Dhabi state investment fund l ‘last year.

Sources said SIP talks with Saudi Arabia were at an advanced stage, but it was unclear whether details would be announced at a meeting. Boris Johnson’s trip in the Middle East this week.

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Lord Grimstone, Mr Johnson’s investment minister, is expected to accompany the PM on the trip to Saudi Arabia

An insider said Lord Grimstone, the former city great who is Mr Johnson’s investment minister, will accompany the Prime Minister on the trip to Saudi Arabia, raising the possibility that a deal will be officially announced this week.

If the alliance follows the model used in Abu Dhabi, it will use Saudi Arabia’s main sovereign wealth vehicle, the Public Investment Fund, which is now better known in Britain as the owner of Newcastle United Football Club.

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The SIP with Mubadala, which is jointly managed by the government’s Office for Investment, has earmarked billions of pounds for investments in sectors such as technology, energy transition and life sciences.

Further details of the PIF’s involvement in the Saudi SIP remained unclear on Tuesday afternoon.

In an email response to a request from Sky News, a spokesperson for the Department for International Trade wrote: ‘No 10 will make plans for the Prime Minister’s delegation later.

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Mr Johnson’s trip, during which he seek to persuade Riyadh to increase oil production to mitigate market shocks following Russia’s invasion of Ukraine, comes amid international protests against a mass execution which took place in Saudi Arabia this weekend.

The government has criticized the executions, setting the stage for a potentially tense exchange of views when the prime minister arrives in Saudi Arabia on Wednesday.