The takeover was killed off last month by the announcement of new laws banning state ownership of UK newspapers, which was prompted by a cross-party outcry in the House of Lords over the potential threat to press freedom.
Sir Brandon said: “Now I know that MPs and ministers who opposed the deal were at pains to say the UK valued the partnership with the United Arab Emirates and would still be keen for inward investment.
“But I can assure them that is not how it is perceived by the Emiratis, and it will take more than warm words to put this right.
“Reports of meetings with UK ministers being cancelled are cause for serious concern, and it would be logical that the handling of The Telegraph sale is a factor in this apparent breakdown of relations.”
Sir Brandon is a close friend and political ally of Nadhim Zahawi, the former education secretary and briefly chancellor, who acted as a broker in a deal for The Telegraph between its current owners the Barclay family and the UAE.
Mr Zahawi, who is also stepping down as an MP, hoped to become chairman of The Telegraph under Redbird IMI ownership but has instead been appointed chairman of the Barclay family online retailer Very.
It is now in direct debt to Sheikh Mansour having been offered as security in another part of the complex deal, which was structured to repay the family’s £1.2bn overdue debt to Lloyds Banking Group.
The Telegraph and The Spectator magazine, which is owned by the same parent company, are expected to be sold on by Redbird IMI in the coming weeks in a process run by the US advisory Raine, alongside Robey Warshaw in London.
Known interested parties include the GB News co-owner Sir Paul Marshall and the Daily Mail publisher Lord Rothermere.
We must not allow Telegraph takeover battle to sour relations with the UAE
By Sir Brandon Lewis
Last month RedBird IMI announced it would seek to sell The Telegraph and Spectator after the Government effectively banned it from taking ownership by backing new legislation proposed in the Lords.
I supported the bid and set out my rationale back in November. I still believe the claims made about a foreign state takeover were misguided and, potentially, stoked by others with vested interests and lack of knowledge of the reality of how the deal was structured.
However, I’m not seeking to debate what is now the past – RedBird IMI is moving on, bidders are coming forward and Parliament has expressed its view, which must be respected.
The focus now is on which of the various contenders will own The Telegraph and Spectator. I note RedBird IMI chairman Jeff Zucker’s recent comments that competition seems to be fierce and that both publications could yet be owned by individuals or companies from beyond our shores.
The runners and riders of who could secure these respected outlets is clearly important and of public interest. In that light I hope the Government, and indeed Parliament, does not lose sight of what will be much more crucial to the UK in the long term – ensuring we have a strong and positive relationship with a vital Gulf ally.
As I said last year, the United Arab Emirates government was not involved in this purchase, it was simply a bystander dragged in by those who wished to stop Jeff Zucker’s attempt to seal the deal, yet the fallout is the same.
At a tumultuous time in geopolitics, when the UK needs economic and security allies, a steady stream of people have not missed an opportunity to criticise the UAE, often based on misguided and outdated views.
In this, they have been aided by some players who are perhaps not being fully honest about where their interests lie. They have sought to elide a deal by a respected US investment group – which owns media assets including firms producing such beloved shows as Fleabag and The Traitors already – with a foreign state takeover.
Now I know that MPs and ministers who opposed the deal were at pains to say the UK valued the partnership with the United Arab Emirates and would still be keen for inward investment. But I can assure them that is not how it is perceived by the Emiratis, and it will take more than warm words to put this right.
Reports of meetings with UK ministers being cancelled are cause for serious concern, and it would be logical that the handling of The Telegraph sale is a factor in this apparent breakdown of relations.
The irony is that successive governments have worked so hard to cultivate good relationships with the UAE – and it’s been paying off. Total trade in goods and services was worth more than £24bn in 2023 and the UAE invested £7.4bn in the UK according to the most recent figures.
Perhaps surprisingly, given the outcry over The Telegraph, much of this inward investment has been actively encouraged and is in vital areas such as renewable energy, helping fund the successful creation of our offshore wind farms or in new nuclear reactors. Effectively helping to protect and develop our energy security in the UK.
It is obviously true to also say that a key critical issue is their role as a strategic partner in the Middle East. The Prime Minister has said this is one of the most dangerous periods we have faced since the Cold War – and I agree.
In the UAE we have an ally we can trust at a time when the Foreign Secretary and others are working so hard to prevent the unrest in the region from spiralling ever further out of control. Diplomatic spats between UAE and the UK would be something that only serves to strengthen the hand of our enemies.
We need careful handling to ensure that the UK continues to develop a strong relationship with a long-standing ally and does not risk a loss of influence abroad. This is not to say we must prioritise diplomatic relationships at all costs with any nation state – indeed I think the Government should be following the US’s example and be willing to ban TikTok unless it fully divests itself of its links to the Chinese state, to name but one example.
But now is the time to redouble efforts with the UAE, whether it’s as a Gulf state ally or as a source of inward investment. No one should be naive; these are dangerous times.
Good friends are hard to find and the UK does not have the luxury of time.
Sir Brandon Lewis is a former Secretary of State for Justice
