The UAE and UK have entered into a Sovereign Investment Partnership as part of which Abu Dhabi’s Mubadala Investment Company will invest $1.09 billion into the British life sciences sector over the next five years and it will be added to the $274 million fund of the UK’s Life Sciences Investment Programme.
The agreement between the countries is in line with global action on critical priorities like healthcare innovation and delivery, climate change and the sustainable growth of high-skilled industries.
“Mubadala is already a long-term investor in UK innovation and growth, and our new partnership now provides a platform to allocate stable capital to priority sectors as part of a future-focused investment relationship,” Khaldoon Al Mubarak, group chief executive of Mubadala, stated.
The life sciences industry generates $1.09 billion in sales a year within the UK and employs over 250,000 people. The partnership is expected to generate stronger outcomes in life sciences research and education between the countries.
This is the first agreement of its kind for the UK’s Office for Investment and is expected to deepen existing trade and investment ties between UK-UAE that were worth $43 billion in 2019. The SIP’s inaugural life sciences investments are expected to complete later this year.
“Investments will also be made across tech and innovation-led sectors like energy transition and infrastructure that will support job creation in both nations, strengthen national research and development capabilities and develop new areas of investment collaboration”, according to a joint statement by Mubadala and the UK Office for Investment.
“The UAE is an important trading partner for the UK and home to some of the world’s largest and most experienced investment companies. It’s fantastic that we are collaborating more closely in the industries of tomorrow like science, tech and green growth, so we can build back better and deliver an investment-led, jobs-led recovery from coronavirus.”
Mubadala will further join with UK-based companies to research initiatives across its portfolio, which includes investments in composite manufacturing, semiconductors, renewable energy, biotech and urban mobility.
“Attracting and enabling strategic international investors to operate effectively in the UK is vital to job creation and our growth as a world leader in life sciences, clean growth, tech and innovation. Mubadala is exactly the caliber of investor that we want to partner with to enable vital pillars of our economy to advance,” the UK minister for investment, Gerry Grimstone, said.
The signing of the SIP agreement is following a meeting between Sheikh Mohamed Bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces and UK Prime Minister Boris Johnson last year for nourishing the bilateral relations between the two countries. Mubadala is already one of the largest investors in UK clean energy infrastructure.