Finance

Qatar to invest £1bn in UK climate tech

December 4, 2024, 5:12 PM

Britain's King Charles and Queen Camilla with the Emir of Qatar Sheikh Tamim bin Hamad Al Thani and Britain's Princess Anne, Princess Royal attend a State Banquet at Buckingham Palace, London, during the state visit to the UK of the Emir of Qatar, Britain, December 3, 2024. — Britain's King Charles and Queen Camilla with the Emir of Qatar, Sheikh Tamim bin Hamad Al Thani at the state banquet at Buckingham Palace

Qatar emir state visit
Tech and finance deals
Major British investor

The Qatari and British governments have announced a spate of deals as the Gulf country’s emir arrived in the UK on a two-day state visit.

Officials announced on Wednesday that Qatar will invest £1 billion ($1.27 billion) in climate technology in the UK, with British engineering firm Rolls-Royce a key beneficiary.

The investment is expected to create thousands of jobs and launch climate technology centres in both countries, the UK government said.

Rolls-Royce CEO Tufan Erginbilgic said in a statement: “Enabling the energy transition through lower carbon technologies is a key part of our strategy. We are delighted to welcome Qatar as a strategic partner, who will support the growth of these technologies.”

The two countries, which have a long history of economic, diplomatic and military ties, also signed a memorandum of understanding to promote cooperation in financial services, with a focus on green techology and fintech. The UK has previously signed similar deals with the UAE and Saudi Arabia.

“Signing the agreement will support investment and growth across both countries, stronger cooperation on financial services and improve ties between the UK, Qatar and the wider region,” the UK finance ministry said.

Qatar is a major investor in Britain through its sovereign wealth fund, the Qatar Investment Authority. Qatar owns at least £40 billion worth of British assets, including the Canary Wharf business and entertainment district in East London, the Shard skyscraper in central London and stakes in Barclays and Heathrow Airport.

The UK’s new Labour government is making a concerted push to entice Gulf investors to the country. In October UK trade minister Douglas Alexander told AGBI that the they are “actively seeking inward investment” from the Gulf’s “globally mobile capital investors”.

The UK has gone to great lengths to court Qatari investment on the current trip, including a ceremonial greeting at Horse Guards Parade and then a carriage ride along the Mall to Buckingham Palace, a lavish meal with the King and Queen alongside a star-studded guest list including David Beckham and Qatari national Nasser Al-Khelaifi, president of Paris St-Germain football club.