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Britain hopes to raise tens of billions of pounds of investment from the United Arab Emirates as it re-establishes business ties following political chaos in Westminster last year.
Grant Shapps, the secretary of state for business, energy and industrial strategy, said on Friday that “political changes” in Britain, which saw the country change prime ministers three times a year, could slow the pace of inward investment in the Gulf state.
Russia’s invasion of Ukraine last February and resulting policy changes, such as a windfall profit tax on energy companies, were also factors, he added.
In meetings with government officials and sovereign funds, Shapps said UAE investors were focused on going beyond the £6.1bn already made over five years. £10bn UAE-UK partnershipto be archived in 2021.
“them [UAE investors] Absolutely certain they will reach £10bn or more,” he said, while the remaining £4bn internal commitments would be “met and smashed”.
“We know there are tens of billions of pounds to invest,” Sharps said. “Things were on hold from summer to fall, but they [UAE investors] Glad to hear it has settled down. “
“Rishi Sunak is running an organized, fact-focused and data-based government . . . they are happy to hear that,” he added.
UAE investments under the partnership span life sciences, clean energy, technology and infrastructure, including an £800m investment from Abu Dhabi sovereign investment firm Mubadala in British telecommunications company CityFibre, which is rolling out broadband lines in the UK.
The Gulf sovereign fund has privately expressed dismay at the drift of British policymaking at the end of former prime minister Boris Johnson’s government and Liz Truss’ subsequent brief tenure in power.
The UAE has been particularly interested in investing in clean energy, including battery storage and wind power, as well as areas such as nuclear energy and life sciences, Shapps said. He noted that the UK also hopes to reciprocate through more investment in the UAE.
During the trip, Shapps, who came to Abu Dhabi from Riyadh, met with senior business figures, including Mubadala Chief Executive Khaldoon al-Mubarak. “We are ready to get back on track,” a spokesman for the state-owned investment firm said.
UAE and other Gulf states buoyed by high international oil prices, Find investment opportunities around the world, and to accelerate domestic development plans. Financiers have been heading straight to the region in recent months to tap what many believe is one of the world’s last remaining pools of excess liquidity.
Since his predecessor, Lord Grimstone, left last July, UK investment secretary Lord Dominic Johnson has taken over the role of “key man” for Gulf sovereign funds looking to invest in the UK.
The UAE is also interested in the UK’s efforts to develop new nuclear power stations through the Great British Nuclear vehicle, including the government’s £700m investment in the Sizewell C nuclear power station in Suffolk.
Shapps said the UK would eventually seek £20bn from other investors for Sizewell C and funding for the small modular reactor technology.
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