The UK government will boost funds available for British companies looking to do business in Qatar, with parallel arrangements planned for Qatari firms aiming to work in the UK, Dr Liam Fox has announced.
In a 27 March speech to a gathering of UK and Qatari business leaders, the international trade secretary said that the British government – like Qatar – “is embarking upon a bold industrial strategy, taking the big investment decisions required on capital projects to stimulate our economy and project our prosperity far into the future”.
Both nations, he pointed out, are looking for “reliable international friendships, and seeking to build long-term, committed partnerships” to meet those challenges.
“We believe that no trade between the UK and Qatar should fail for lack of finance and insurance,” he said. “That is why the UK government, through [funding agency] UK Export Finance [UKEF], can give buyers and project sponsors in Qatar attractive long-term finance to make sourcing from the UK more competitive.”
With that in mind, Fox explained: “We will be doubling the finance available from UKEF to support trade with Qatar to £4.5bn. That’s an additional £2.25bn in support for UK companies exporting to Qatar, and for their Qatari buyers in both the public and private sectors.
“In addition, following Autumn Statement 2016, UKEF support will now be available in Qatari riyal, allowing buyers in Qatar to access finance in their own currency, making the UK’s world-leading goods and services even more competitive.”
Fox paid glowing tribute to the £35bn worth of investment that Qatar has made in the UK in recent years.
“Some of the most iconic buildings of our capital city, from the Shard to Number One Hyde Park, stand as testament to the strength of our commercial relationship,” he said. “From commercial ports to hotels and hospitality, Qatari investments have made their mark on Britain as successful, profitable ventures.”
But successful investment, he noted, has not been a one-way process.
“More than 600 UK firms are currently operating in Qatar, in industries from telecoms to education,” he said. “In the past decade, Shell has invested almost $21bn in your oil industry, making it Qatar’s single largest foreign investor.
“British firms have also been instrumental in helping Qatar prepare for the 2022 World Cup … As we speak, British companies are in Qatar offering skills, knowledge and expertise on everything from stadium design and engineering to players’ facilities.”
Such success stories, Fox said, “illustrate why Qatar and the UK are so economically suited to one another”, and why their relationship “can only go from strength to strength in the future”.
Fox stressed: “The UK government has put a bold new Industrial Strategy at the heart of its vision for Britain … We are not shying away from the bold decisions required.
“Since coming to office, we have approved the construction of a third runway at Heathrow, published a National Infrastructure and Construction pipeline, and announced more than 720 new infrastructure projects, representing over £500bn worth of planned public and private investment in the sector.
“Of this, more than £300bn will be invested before 2021. Put simply, there has never been a better time to invest in the United Kingdom, or more opportunities available to do so.”
He added: “I have spoken already of the transformative effect that Qatari investment has had on London, but the greatest opportunities of the coming years will lie outside the capital, particularly in the North of England – a region that last year saw a 24% increase in FDI projects – and the Midlands.
“As new transport links cut journey times across our country, these regions will be at the forefront of our economic growth, centres of dynamism and innovation. The UK wants Qatar to be our partner on this journey – just as we will invest in your 2030 National Vision.”