The United Arab Emirates (UAE) has promised to invest £ 10 billion ($ 13.8 billion) in the UK over the next five years, and the London government has seen a steady decline in inward investment since it resolved to leave the EU. Is boosting. In 2016.
The commitment was made on September 16 when Prince Abu Dhabi Sheikh Mohammed bin Zayed Arnahan visited Prime Minister Boris Johnson at 10 Downing Street in London.
The new commitment is based on the £ 1 billion “Sovereign Investment Partnership” announced in March between the UK Investment Authority and Abu Dhabi’s Mubadara Investment Company. Under that agreement, Mbadara has committed £ 800 million to UK life sciences, along with the UK Government’s £ 200 million life sciences investment program. New investments promised over the next few years will be made in areas such as energy conversion, technology and infrastructure.
Such investments could help prevent a steady decline in inward foreign direct investment (FDI) since Brexit’s vote five years ago. Total commitment represents approximately 70% of all inward foreign direct investment in the UK last year.
After a record $ 259 billion inward investment in the UK in 2016, some very large M & A deals, mainly including the acquisition of brewer SABMiller and chip maker ARM, amounted to 96 billion in 2017. The dollar fell to $ 65 billion in 2018. In 2019 it will be only $ 45.5 billion.
In the Covid-19 pandemic, it declined further in 2020, with the United Nations Conference on Trade and Development (UNCTAD) reporting a decline to just $ 19.7 billion. In contrast, the UAE is one of the few countries where inward foreign direct investment increased from $ 18 billion in 2019 to $ 19.9 billion in 2020, slightly surpassing the UK for the first time.
FDI flow tends to fluctuate. The UK dropped from the world’s largest recipient of FDI inflows to 16 in 2005.NS In 2014. It is currently somewhere in the middle of that range.
For some time since 2016, the UK’s FDI decline is in line with global trends, but the 2019 FDI decline is a 6.5% increase in global inward investment flow, with 27 EU countries. It occurred at the time when the inward flow to. According to UNCTAD, it increased by 9.5%.
Despite Brexit, the investment relationship between the UK and the EU remains strong. The United States is the largest single investor in the United Kingdom, according to a report from the House of Commons Library, but seven of the next nine largest investors are from the EU, led by France, the Netherlands, Germany and Belgium. Thing.