Abu Dhabi fund Mubadala signed an agreement at Downing Street on Thursday to significantly expand the UAE-UK Sovereign Investment Partnership, building on a framework for investment announced in March 2021.
Over the next five years, the UAE-UK SIP plans to drive a significant increase in investment across a further three sectors: technology, infrastructure and energy transition, as well as build on the existing programme of life sciences investment.
The announcement committed £10 billion ($13.7bn) to build on Mubadala’s £800 million commitment and the British government’s £200m to UK life sciences when the partnership was established in March.
The UAE-UK SIP will become the central investment platform under the new Partnership for the Future bilateral framework, which was also agreed on today at a meeting between UK Prime Minister Boris Johnson and Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces.
The deal was welcomed by officials from both countries as a step-change in the relationship.
"Today's expansion of our Sovereign Investment Partnership will help accelerate funding and innovation in key sectors that are foundational to economic growth of both nations," Khaldoon Al Mubarak, Mubadala managing director and group chief executive, said.
"It is a testament to the UK's innovation economy that we are ahead of target with the UAE-UK SIP life sciences programme, which we announced in March of this year. We are already developing ambitious energy transition, technology and infrastructure investment programmes that create new jobs and strengthen commercial ties between our nations."
The UK said the framework offered the country new ways of meeting its post-Brexit growth ambitions.
“Attracting investment has become globally competitive, and there’s never been a better time to be taking part and investing in the UK," said Lord Grimstone, Minister for Investment.
“This partnership has gone from strength to strength and its expansion is evidence of its effectiveness and what we can achieve with important trade and investment partners like the UAE through investment. The partnership will expand the exchange of knowledge, skills and ideas that will drive prosperity in both nations.
“It’s great to see the Office for Investment together with Mubadala Investment Company deliver what we initially set out to do, and expanding into new verticals that will drive economic growth across the UK.”