The U.K. Office for Investment and Mubadala Investment Co. have signed a long-term investment agreement, which will see the Abu Dhabi-based sovereign wealth fund commit an initial £800 million ($1.1 billion) to U.K. projects.
The agreement — dubbed the Sovereign Investment Partnership, or SIP — is the first of its kind for the U.K. and its Office for Investment, which was created late last year to attract foreign investment into the country. The agreement will deepen existing U.K. and United Arab Emirates trade and investment ties that were worth £32 billion in 2019, a news release by Mubadala said.
The $232 billion sovereign wealth fund's initial commitment will be invested in U.K. life sciences over five years. The £800 million will be deployed alongside a £200 million Life Sciences Investment Programme announced by the U.K. last year. The Office for Investment and Mubadala will work together to identify commercially viable investment opportunities. The first investments are expected to be made later this year.
The SIP will invest across several technology and innovation-led sectors, including energy transition and infrastructure, strengthen national research and development capabilities, and develop new areas of investment collaboration.
"The UAE is an important trading partner for the U.K. and home to some of the world's largest and most experienced investment companies," Liz Truss, U.K. international trade secretary, said in the release. "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."
Khaldoon Khalifa al Mubarak, managing director and group CEO of Mubadala, added: "The UAE and U.K. are aligned on the importance of global action on critical priorities such as health-care innovation and delivery, climate change and the sustainable growth of high-skilled industries. Coordination on investment and global innovation ecosystems is vital to enabling progress against these challenges and presents a significant post-COVID economic opportunity for the U.K. and UAE."
A Mubadala spokesman said further investment is earmarked for the U.K.