Qatar has pledged to take a position £10bn within the UK, together with the technology, healthcare, infrastructure and clear power sectors, as British authorities steps up its efforts to woo sovereign wealth fund funding from oil-rich Gulf states.
Sheikh Mohammed bin Abdulrahman Al-Thani, the Gulf state’s overseas minister, advised the Monetary Instances that the funds could be channelled by way of the Qatar Funding Authority over the following 5 years.
“We hope this can deliver a giant deal of alternatives to the UK and Qatar within the close to future,” stated Sheikh Mohammed, who’s chair of the QIA, which has an estimated $450bn beneath administration.
“Particularly within the areas of expertise, fintech, sustainability, there’s nice potential with zero-net occurring,” he added, referring to the UK’s plans to chop the UK’s internet carbon emissions to zero by 2050.
UK prime minister Boris Johnson welcomed the take care of Qatar as a vote of confidence in British enterprise. “The brand new UK-Qatar strategic funding partnership will create high quality job alternatives throughout the nation in key sectors, delivering on our imaginative and prescient of financial progress by way of commerce and funding,” he stated.
The funding settlement was introduced throughout talks between Johnson and Sheikh Tamim bin Hamad al-Thani, Qatar’s emir, on Tuesday.
Final 12 months, the UK signed an identical take care of Mubadala, the Abu Dhabi sovereign wealth fund, to take a position £10bn. The oil and fuel producing Gulf states have seen their revenues soar as power costs have remained excessive over the previous 12 months.
Qatar has a protracted report of investing within the UK and has already invested £5bn in Britain since 2017. It additionally owns a number of trophy property, together with Harrods and the Shard skyscraper in London.
The UK and Qatar additionally signed a memorandum of understanding “to work collectively to spice up innovation and collaboration, supporting the safety of worldwide power provides”.
Because the world’s prime exporter of liquefied pure fuel, Qatar’s significance to the UK and the remainder of Europe has elevated within the wake of Russia’s invasion of Ukraine. The Gulf state provides about 40 per cent of the UK’s LNG and is in talks to extend its exports to the nation.
Qatari officers have been holding talks with quite a few governments and power corporations in Europe, together with Germany, France, Italy and Spain, to agree long run LNG contracts and enhance exports to the continent because it makes an attempt to cut back its dependency on Russian power.
Within the UK, Qatar is almost all proprietor of South Hook LNG terminal in Wales, which has the capability to produce a fifth of the UK’s fuel wants. Final 12 months it additionally secured rights for storage capability on the LNG terminal on Isle of Grain in Kent, for 25 years from 2025.