UAE, UK ink $10 billion deal during Abu Dhabi Crown Prince state visit

The United Arab Emirates is to invest up to $10billion in the United Kingdom in energy transition, infrastructure, and technology, the two nations announced following a state visit by Sheikh Mohamed bin Zayed al-Nahyan, Crown Prince of Abu Dhabi.

Mubadala, the Abu Dhabi sovereign wealth fund, and the UK Office for Investment (OfI), signed an agreement at Downing Street to significantly expand the UAE-UK Sovereign Investment Partnership (UAE-UK SIP), a framework for investment announced in March 2021.

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Over the next five years, the UAE-UK SIP will drive a significant increase in investment across a further three sectors: technology, infrastructure, and energy transition, as well as build on the existing program of life sciences investment, state news agency WAM reported.

Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, has said he looks forward to another half century of close relations with the United Kingdom, during a state tour to the British capital. (Twitter)

As part of the agreement the UAE has committed ₤10 billion via the UAE-UK SIP, overseen by the OfI and Mubadala, one of the world’s leading sovereign investors. This 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.

The UAE-UK SIP will now become the central investment platform under the new ‘Partnership for the Future’ bilateral framework, agreed at a meeting between UK Prime Minister Boris Johnson and Sheikh Mohamed.

Khaldoon al-Mubarak, Mubadala’s managing director and group CEO, 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 program, which we announced in March of this year. We are already developing ambitious energy transition, technology and infrastructure investment programs that create new jobs and strengthen commercial ties between our nations.”

UK Minister for Investment, Gerry Grimstone, said, “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.”

Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, and Boris Johnson, Prime Minister of the United Kingdom (UK), have discussed the historic friendship ties and joint strategic cooperation between the UAE and the UK and ways to enhance relations in the best interest of the two sides. (Supplied: WAM)

The United Kingdom and the United Arab Emirates share an important trade and investment relationship, with total trade of ₤18.6bn in 2019, and two-way investment of ₤13.4bn in 2019.

The Partnership for the Future builds on historical ties to formalize 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.

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