HomeBussinessMiddle Eastern investment in Britain rocked by anti-Muslim riots

Middle Eastern investment in Britain rocked by anti-Muslim riots

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Robert Gardener, formerly of the Abu Dhabi Executive Affairs Authority and now director of government affairs at law firm Logan Hovells, said leaders in the region are, contrary to common perceptions, sensitive to public opinion.

“With their overseas investment the Gulf states will always be looking at how it is going to play out back home because of the importance of showing relevance to domestic views,” Gardener said.

“If they’re seeing riots on the streets then that is clearly something that could start to impact their ability to be able to continue to defend that [investment] back home.”

So far the reaction has been muted, despite Britain’s unrest gaining widespread media coverage in the region.

However, Abishur Prakash, founder of consultancy The Geopolitical Business, says racist attacks in Britain might draw a bigger response in future as rich Gulf states exert themselves more on the global stage.

“The geopolitical climate where the West kind of did whatever it wanted and the rest of the world just followed is gone,” he said. 

“Will Muslim nations quietly begin to slow down foreign investment and will Muslim nations at the next flare up in the UK strike a different tone and issue warnings? I think that is increasingly a possibility.”

So far the main impact has come in Britain’s property market, intensifying a shift among the mega-rich to buy properties in gated communities and with round-the-clock security, according to luxury estate agency Beauchamp. 

Rosy Khalastchy, the agency’s director, said: “Private security provision – guards, concierge, CCTV and private security firms – have risen in importance as there is a feeling that more policing is needed but not always provided.”

It is part of a trend in recent years where protests and a failure to clamp down on robberies and other theft have left wealthy buyers on edge.

This matters for the wider economy if fund managers feel unsafe here while investing their nations’ wealth.

A lawyer who handles major deals between Britain and the Gulf said: “A lot of these investors come and spend time residing in the UK, so there is a possibility their investments could be impacted.”

Autumn investment summit

Ms Reeves is hosting an international investment summit in October.

So far the only attendees officially announced are American funds, but it is understood the Government is keen to bring in Middle Eastern names as well.

A spokesman for the Department for Business and Trade said: “Investors around the world are already expressing significant interest in this autumn’s International Investment Summit, showing the confidence they have in this Government’s plan to create a strong, stable and pro-business economy.”

“The UK has zero tolerance for racism, far-Right extremism and islamophobia, and these abhorrent riots do not represent our country.”

Meanwhile, DP World is still planning the fifth, sixth and seventh berths at London Gateway to expand the port later this decade.

The Chancellor can look forward to more royal visits to Britain’s ports, even if the riots have taken the shine off the country’s reputation.

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