United Arab Emirates: the new Brics member buying the British debate

Concern is growing over the influence of foreign authoritarian rulers taking control of newspapers in the UK

Tthe he United’Arab world s most Emirates important (UAE) has transformed from a collection of small oases and pearl diving villages into one of trade, tourism and investment destinations. Strategically located between Europe, Africa and Asia, the federation is well positioned to capitalise on the high economic growth rates of nearby emerging markets. This explains the UAE’s decision to join the Brics (Brazil, Russia, China and SA) bloc. But the federation’s rulers are also investing heavily in the UK.

The UAE has a long colonial history. It was Islamised in the seventh century, and the Portuguese empire arrived a thousand years later, disrupting the Arab trade networks and taking over taxation from the Sultan of Hormuz. Subsequent conflicts between the maritime communities and the British led to the sacking of Ras Al Khaimah in the early 19th century, resulting in a number of British treaties with local rulers. The seven sheikdoms eventually formed the United Arab Emirates after British forces left the region in the late 1960s.

Today the emirates are major oil exporters with highly diversified economies. The capital, Abu Dhabi, hosts a Grand Prix in the Formula One motor racing series, while Dubai is home to the largest man-made seaport and the world’s tallest building. But not only have these initially insignificant trading outposts in the desert revolutionised their economies without changing their political and religious character, they are also beginning to exert their influence on other countries, and the British public is growing increasingly concerned.

Concerns about the growing power of the UAE first arose in the UK after the controversial ruler of Dubai acquired a substantial property empire in Britain, estimated to exceed 40,000ha. This made Sheikh Mohammed bin Rashid al-Maktoum one of the UK’s largest landowners. The sheik’s property portfolio is believed to include farmlands, mansions and stables, ranging from multimillionpound houses in London to lavish estates in the Scottish Highlands.

The true scale of the sheik’s landholdings is uncertain because many of the properties are held by offshore companies in British tax havens. Nevertheless, his property portfolio has enabled him to rub shoulders with the British royal family at famous horse races and is estimated to exceed the personal holdings of King Charles himself.

This raises intriguing questions about what sort of influence the UAE is able to wield within the UK’s political establishment, and for what purpose.

The British media first raised this concern after Mohammed was alleged to have abducted his daughter, Shamsa, when she ran away from home in August 2000. The family was in the UK at the time and it is believed the sheik locked his daughter up in one of his London properties before flying her back to Dubai. She has not been seen in public since.

In the resulting high court case, Princess Haya, the sheik’s sixth wife, alleged the police inquiry into Shamsa’s abduction was halted after Mohammed put pressure on the UK government to abandon the investigation.

The foreign office denied intervening in the case but refused to disclose any of the information it held, claiming that doing so would undermine the government’s ability to protect and promote its interests through its relations with the UAE.

This incident contributed to the perception that Mohammed has been allowed to operate with impunity in Britain due to his wealth and political influence, and underlies concerns related to the recent announcement that another UAE royal intends to acquire a set of prestigious British newspapers.

There are significant concerns in the UK regarding the intricate arrangement by the Barclay family to transfer control of the Telegraph and Spectator newspapers to RedBird IMI, which receives most of its funding from Sheikh Mansour bin Zayed al-Nahyan, the vice-president of the UAE and owner of Manchester City football club. Mansour is believed to be covering the £1.16bn debts owed by the Barclay family to Lloyds bank, with the goal of converting the loan payments into ownership of the prized British publications.

Founded in 1855, the Telegraph is considered a newspaper of record, while the Spectator, founded in 1828, is the oldest surviving weekly magazine in the world.

Several MPs have criticised the proposed takeover, cautioning against the difficulty of “separating sheikh and state”. These legislators are advocating further investigations before the deal potentially becomes problematic for the UK government. Conservative MPs have emphasised concerns about potential editorial interference at the newspapers.

However, the situation is complicated by the fact that newspaper assets are not covered by the National Security and Investment Act, which allows the government to scrutinise and potentially block deals involving nationally significant British assets.

John Nicolson, a Scottish National Party MP, raised concerns about the Telegraph becoming a “loss-making public relations arm of a foreign state”, with access to Britain’s daily news cycle. The politician suggested the sale could pose a challenge to the UK’s democratic principles.

This certainly sparks a debate about media freedom and whether a free press means anyone should be allowed to buy a newspaper and choose their own editorial position, or if governments should intervene to safeguard national interests.

In contrast to Russia and China, where foreign ownership of media is prohibited, the UK currently allows it. Nevertheless, the British government has issued two public interest intervention notices, urging Ofcom and the Competition and Markets Authority to examine potential issues, including the accurate presentation of news, free expression of opinion and a sufficient plurality of views.

But considering the current legal framework in the UK the proposed buyers from the UAE appear to have the upper hand.

Media reports about the UAE’s rulers mingling with the royal family, subverting British law and taking control of the country’s newspapers have naturally led to concerns about the growing influence of foreign authoritarian leaders. That said, considering world history many might feel the Brits are simply getting a taste of their own medicine.

One thing is certain though: the Brics and its new members, such as the UAE, are beginning to exert significant economic and political influence across the globe.