Qatar pledges investment in Britain

LONDON: Qatar pledged £5 billion (R80bn) of investment in Britain yesterday in a show of support for the world’s fifth-largest economy just two days before Prime Minister Theresa May triggers formal Brexit talks.

The wealthy Gulf state has £40bn of investments in the UK, including London landmarks like the Shard skyscraper, Harrods department store, The Savoy hotel and a stake in the Canary Wharf financial district.

While the June 23 referendum vote to leave the EU took many investors and chief executives by surprise, Qatar’s top financial players used an investment conference in London to pledge support for Brexit Britain.

The head of the $335bn Qatar Investment Authority (QIA) sovereign wealth fund said he saw opportunities in Britain. QIA chief executive Sheikh Abdullah bin Mohammed bin Saud alThani told the conference: “Whenever the (British) government would like the QIA to step in, we are ready.”

Qatar’s prime minister, Sheikh Abdullah bin Nasser bin Khalifa al-Thani, said Qatar expected to invest £5bn in Britain over the next five years.

June’s Brexit vote triggered the deepest political crisis in Britain since World War II. Britain’s exit from the EU, probably in 2019, has raised questions about future economic growth and whether London can retain its position as the only financial centre to challenge New York.

Tomorrow, May is expected to formally notify the EU of Britain’s intention to leave the club it joined in 1973.

Qatar, which delivers 90% of Britain’s imports of liquefied natural gas and is the world’s biggest producer of the fuel, could play an important role in steeling the UK against economic fallout during and after Brexit.

Investors from Qatar, Saudi Arabia, Kuwait and the United Arab Emirates have been prolific buyers of British assets in the past decade, snapping up property, mostly in London.

Qatar is the wealthiest country in the world per capita. – Reuters