While media focuses on Russian money, UK ministers allow Gulf tyrannies to invest £140bn in Britain

Investments in Britain by Russian oligarchs, often involving “dirty money”, have been widely condemned across the UK’s political spectrum as Boris Johnson’s government identifies Vladimir Putin as a growing threat to the UK.

However, a far larger proportion of Britain’s assets is being bought up by the UK’s oil-rich repressive allies in the Middle Eastern Gulf states — which own over five times more of Britain’s economy than Russia, figures show. 

The Gulf regimes, which are run by unelected Kings or Emirs who routinely torture dissidents and ban political parties, elections and independent media, have been allowed to buy up over £140-billion in UK assets. 

This includes prime property in London and stakes in household-name UK companies and media outlets. 

Most of this spending derives from these countries’ giant “sovereign wealth funds” — where their huge oil and gas revenues are deposited. These funds are controlled by members of the ruling royal families. 

Some have gone on a Covid-19 ‘bargain hunting’ spending spree, snapping up new assets.

The largest investments in Britain have been made by Saudi Arabia and Qatar, which together account for over £100-billion. The United Arab Emirates and Kuwait have been allowed to make investments worth over £40-billion combined. 

Spending is also undertaken in the UK by Bahrain and Oman, although lack of transparency makes the true investment figures from these regimes unknown.



Gulf investments in the UK, which have been actively encouraged by UK ministers, are increasing British economic reliance on regimes whose approach to democracy and human rights is antithetical to much-vaunted “British values”. 

Yet Whitehall has in recent years deepened its support for these regimes and helps to keep them in power by training their internal security forces and selling them large quantities of arms. 

It is likely the UK allows such a permissive investment climate for Gulf autocrats partly in return for their making huge weapons purchases.

The British royal family also plays a key role in bolstering these dictatorships and cultivating political and trade relations.

The recent “Russia report” by a British parliamentary committee noted that “The UK has been viewed as a particularly favourable destination for Russian oligarchs and their money”. Yet investments by Russia in the UK may amount to just £25.5-billion, less than half the Saudi level alone.

China’s investment portfolio in the UK is believed to amount to around £51-billion.

Professor Madawi al-Rasheed, a Saudi analyst at the London School of Economics, told Declassified: “By giving Gulf countries the opportunity to invest in Britain despite their record on human rights, Britain becomes more dependent on these countries and less able to voice a critical opinion on their autocratic rule”.

She added: “Britain does not only sell arms to these countries but also shields them from criticism in international organisations. We all remember how Britain used its position at the UN and supported Saudi Arabia’s application to have a seat at the UN Human Rights Council”.

Saudi Arabia: £60-billion 

Saudi Arabia, whose internal security force is trained and armed by Britain, has made investments in the UK of around £60-billion. 

Most of these are through its oil-rich Public Investment Fund, which is chaired by Mohammed bin Salman, the country’s de facto ruler who is accused by the US of ordering the murder of journalist Jamal Khashoggi.

Last year, Saudi Arabia bought a £598-million stake in British oil giant BP, and another in telecoms corporation BT, as part of a Covid-19 ‘bargain hunting’ spree. 

Saudi investors also own a part of Anglo/Dutch oil giant Shell as well as The Independent and Evening Standard media outlets, and have joint ventures with HSBC and Jaguar Land Rover. 

Kingdom Holding Company, which is run by Saudi Prince Alwaleed bin Talal, maintains a majority interest in the Savoy Hotel in central London, while apps run in the UK, such as Twitter, Uber, Snapchat and Slack are also part-funded by Saudi money.

The Savoy Hotel. (Photo: Damo1977 / Creative Commons 2.0)

The Emir of Qatar meets Boris Johnson, then Mayor of London, at the Olympic Village in 2014. (Photo: State of Qatar)

Queen Elizabeth presents a horse racing award to Dubai’s ruler Sheikh Mohammed at Ascot in June 2019. (Photo: Dubai Media Office)

The McLaren factory near Woking, southern England. (Photo: Peter Macdiarmid / Getty Images)