Qatar’s pledge to invest £5bn into UK infrastructure over the next three to five years could not have come at a better time.
Speaking at the Qatar-UK Business and Investment Forum in London yesterday, the Qatari finance minister Ali Sharif al-Emandi described the UK as Qatar’s “first investment destination” despite Brexit.
Such optimism around the future of the UK economy from a major global investor should come as a welcome boost ahead of Theresa May’s imminent triggering of Article 50 this week amid fears that a split from the EU could undermine the UK’s safe haven status.
An active investor in the UK, Qatar already has around £40bn of investments in the country and shows no sign of slowing down with a focus on infrastructure, healthcare and the IT and tech sectors over the next five years.
Faisal Durrani, head of research at Cluttons said: “Qatar’s commitment to a further £5bn investment in the UK confirms what we are hearing on the ground. Brexit has had little impact on the perception of London, or the UK as a global investment hub in the eyes of Middle East investors. London in particular has a long standing reputation of delivering strong returns for all property asset classes and it’s attraction to the Middle East market stems not from access to EU markets, but its position as the world’s premier investment location. The timing of the announcement ahead of tomorrow’s formal triggering of Article 50 speaks volumes about the confidence being placed in the future of our economy.
“This £5 billion investment into the transport, property and digital technology sectors comes at a time when Britain is working hard to modernise its transport networks and future-proof itself through fostering strong growth in the technology-media-telecoms sector. The Qatari government’s recognition and belief in these critical sectors for the UK is likely to pave the way for other global investors, who will be drawn in by the Qatari’s announcement, particularly its peers from across the other Gulf States.”
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