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The United Arab Emirates has reportedly warned the UK government that the fallout from Manchester City’s financial case could affect billions of pounds in future investment in Britain.
According to reports, the UAE is considering pulling back from major private investment plans after an independent commission found City guilty of serious breaches of Premier League financial rules.
The potential dispute centres on plans for a technology hub between Oxford and Cambridge, which ministers have promoted as a UK version of Silicon Valley.
Man City verdict raises investment concerns
City were found guilty of all charges relating to financial breaches between the 2009-10 and 2017-18 seasons.
The independent commission found that the club used “sham contracts” and artificially inflated its reported financial position by more than £900 million. City have denied wrongdoing and have lodged an appeal, maintaining that they possess “irrefutable evidence” supporting their position.
Reports in The Telegraph say the UAE has warned that sanctions against the club could affect its appetite for future large-scale investments in the UK.
The development comes as questions grow over the relationship between the British government and senior figures connected to City’s Abu Dhabi ownership.
City chairman Khaldoon Al Mubarak visited Downing Street on September 14 for a meeting with Business Secretary Jonathan Reynolds. The meeting was understood to have focused on the UAE’s wider investments in Britain, with Al Mubarak attending in his role as chief executive of Mubadala Investment Company.
Government sources have insisted the meeting was not connected to the Premier League investigation.
Billions at stake as UK seeks UAE investment
Two Labour ministers are reportedly understood to have approached UAE investors about committing billions of pounds to the proposed technology hub in the Oxford-Cambridge corridor.
The Telegraph reported that Al Mubarak and other potential investors were invited to visit the project earlier this year.
The UAE has invested more than £30 billion across major UK sectors over the past five years, including technology, defence and life sciences, making the country’s future investment plans strategically important to the British government.
Downing Street has acknowledged that the Premier League verdict could affect the UAE’s appetite for future large-scale commitments, although the government remains keen to maintain its financial relationship with the Gulf state.
The controversy has also placed pressure on Greater UK Prime Minister Andy Burnham, who has previously praised the contribution of City’s Abu Dhabi-based owners to the development of Manchester.
Burnham recently said he would be “really concerned” if the current owners sold the club, citing their contribution to the city’s transformation.
The Prime Minister was subsequently criticised over the remarks, although Downing Street stressed that the City case remains an independent process.
“The Prime Minister has stressed it’s an ongoing independent process,” a No 10 spokesperson said.
“It’s essential that it’s allowed to run its course and the outcome respected. Wherever wrongdoing is established, those responsible should face the appropriate consequences.”
The UK and UAE are still expected to pursue their broader investment relationship, with an investment summit planned for this October.