UK economy to benefit from $13.8bn UAE investment
The UAE has signed a £10 billion agreement with the UK government, significantly expanding the two countries’ Sovereign Investment Partnership (UAE-UK SIP).
The money will be targeted at key sectors of the UK’s economy over a five-year period – namely technology, infrastructure, and energy transition, as well as build on the existing programme of life sciences investment.
The agreement was signed by the UK Office for Investment (OfI) and Abu Dhabi's Mubadala Investment Company, one of the world’s leading sovereign investors.
The new deal builds on Mubadala’s £800 million commitment and the UK Government’s £200 million to UK life sciences when the partnership was established in March 2021.
The UAE-UK SIP will become the central investment platform under the new Partnership for the Future bilateral framework, which was also agreed at a meeting between UK Prime Minister Boris Johnson and Sheikh Mohamed bin Zayed al Nahyan.
Mubadala managing director and group CEO Khaldoon Al Mubarak said: “Today’s expansion of our Sovereign Investment Partnership will help accelerate funding and innovation in key sectors that are foundational to economic growth of both nations.
“It is a testament to the UK’s innovation economy that we are ahead of target with the UAE-UK SIP life sciences programme, which we announced in March of this year. We are already developing ambitious energy transition, technology and infrastructure investment programmes that create new jobs and strengthen commercial ties between our nations.”
Gerry Grimstone, the UK’s Minister for Investment, commented: “Attracting investment has become globally competitive, and there’s never been a better time to be taking part and investing in the UK.
“This partnership has gone from strength to strength and its expansion is evidence of its effectiveness and what we can achieve with important trade and investment partners like the UAE through investment. The partnership will expand the exchange of knowledge, skills and ideas that will drive prosperity in both nations.
“It’s great to see the Office for Investment together with Mubadala Investment Company deliver what we initially set out to do, and expanding into new verticals that will drive economic growth across the UK.”
The UK and the UAE share an important trade and investment relationship, with total trade of £18.6 billion in 2019, and two-way investment of £13.4 billion in the same year.
The Partnership for the Future builds on historical ties to formalise and guide trade, investment, and innovation relations between the UAE and the UK.
It will also establish new collaborations across priorities, including climate change, education, regional stability, and food security.
To date, over £1.1 billion has been invested since the UAE-UK SIP was launched in March.