UAE invests $14 billion in Britain as it tries to look beyond oil

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(CNN) — The United Arab Emirates will pour £10 billion ($13.8 billion) into the United Kingdom over the next five years, as the Gulf state seeks to diversify its economy beyond fossil fuels.

The UK Office for Investment and UAE sovereign wealth fund Mubadala announced the investment in a statement on Thursday, saying that it would boost economic growth and job creation in the two countries and increase investment into technology, infrastructure and renewable energy.

The UAE has already deployed £1.1 billion ($1.5 billion) into the UK economy since the "sovereign investment partnership" was established in March, including £800 million ($1.1 billion) into the life sciences sector.

"Today's expansion of our sovereign investment partnership will help accelerate funding and innovation in key sectors that are foundational to [the] economic growth of both nations," said Mubadala CEO Khaldoon Al Mubarak.

"We are already developing ambitious energy transition, technology and infrastructure investment programs that create new jobs and strengthen commercial ties between our nations," he added.

The agreement will bolster the UAE's 10-year plan, unveiled earlier this month, to double the size of its economy and attract $150 billion in foreign direct investment by 2030. The major oil and gas producer wants to increase exports, including to the United Kingdom, Russia and China, and attract foreign talent by relaxing visa requirements.

Under the agreement with Britain, investments will be prioritized based on their potential to support job creation in both countries, strengthen national research and development capabilities and enhance economic ties.

In a separate statement, Mubadala said that its partnership with the United Kingdom would include cooperation on climate action with a particular focus on renewable energy. The collaboration could be "deepened" through possible agreements between Abu Dhabi's national oil company, local renewable energy firm Masdar and BP, it added.

Trade and investment between the United Kingdom and United Arab Emirates was worth £32 billion ($44 billion) in 2019.

— Mostafa Salem contributed reporting.

This story was first published on CNN.com, "UAE invests $14 billion in Britain as it tries to look beyond oil."