UK Export Finance Unveils £50 billion Defence Export Fund

UK Export Finance (UKEF) announced a new Defence Export Fund of £50 billion, raising the agency’s total export‑finance capacity to £130 billion. The fund is designed to guarantee bank loans for British defence exporters and to back financing for foreign buyers of UK‑made defence equipment, supporting companies of all sizes in winning major overseas contracts.

The move follows a record‑high year for global military spending, with defence budgets climbing to $2.7 trillion in 2024. UKEF cites recent landmark deals – such as air‑defence systems for Poland and Ukraine and submarine‑rescue vehicles for Indonesia – as proof of growing demand for British capabilities. Tim Reid, UKEF’s chief executive, said, “Security is a strategic priority for governments worldwide, and the UK’s defence sector offers pioneering capabilities that allies are actively seeking.” The fund aims to generate skilled jobs across the UK and help the country secure roughly £12.5 billion in new export contracts by 2029.