The United Arab Emirates, through Mubadala, will invest £10 billion ($13.8 billion) into the United Kingdom over the next five years, as the Gulf state seeks to diversify its economy beyond fossil fuels.
The UAE has already deployed £1.1 billion ($1.5 billion) into the UK economy since the “sovereign investment partnership” was established in March, including £800 million ($1.1 billion) into the life sciences sector, according to a CNN report.
“Today’s expansion of our sovereign investment partnership will help accelerate funding and innovation in key sectors that are foundational to [the] economic growth of both nations,” said Khaldoon Al Mubarak, CEO of Mubadala, UAE Sovereign Wealth Fund.
“We are already developing ambitious energy transition, technology, and infrastructure investment programs that create new jobs and strengthen commercial ties between our nations,” he added.
The agreement will bolster the UAE’s 10-year plan, unveiled earlier this month, to double the size of its economy and attract $150 billion in foreign direct investment by 2030. The major oil and gas producer wants to increase exports, including to the United Kingdom, Russia and China, and attract foreign talent by relaxing visa requirements.
In a separate statement, Mubadala said that its partnership with the United Kingdom would include cooperation on climate action with a particular focus on renewable energy. The collaboration could be “deepened” through possible agreements between Abu Dhabi’s national oil company, local renewable energy firm Masdar and BP, it added.
Trade and investment between the United Kingdom and the United Arab Emirates were worth £32 billion ($44 billion) in 2019.