Qatar banks' exposure to UK totals £4.8bn: CEBR

06/05/2025 02:50 AST

Qatari banks' exposure to the UK totalled about £4.8bn with investments and credit facilities accounting for a significant portion of this exposure, according to the UK-based Centre of Economics and Business Research (CEBR).

Transactions through Qatar-issued cards in the UK totalled £966mn during 2023 from more than 8.5mn transactions, reflecting the "significant" consumer spending, said CEBR in its report, which was recently unveiled here.

The Qatar Central Bank (QCB) holds substantial investments in the UK, where the British pound (GBP) is the fifth-largest reserve currency in the QCB's foreign reserve portfolio, amounting to £1.63bn (2.87% of its total foreign currency reserves), said CEBR report.

The QCB has also maintained a gold custody account with the Bank of England for decades. As of November 2024, the QCB's total investment in the UK stands at about £7.8bn, including £6.9bn in gold custody and £240.9mn in UK Treasury Notes.

Furthermore, the QCB statistics on financial exchanges between the UK and Qatar highlight the significant scale of economic interactions between the two countries.

Remittances from Qatar to the UK were at £303.3mn, sent by nearly 15,000 workers, underscoring the economic presence of the UK expatriates in Qatar and the role of remittances in supporting investment, savings, and consumption in the UK.

"The steady volume of remittances highlights the presence of a significant UK workforce in Qatar. Remittances often facilitate investments, savings, and consumption in the UK, further reinforcing bilateral financial engagement," the report said.

The financial services sector was the only one in which Qatar made an investment and later divested during the 2008-22 study period. Qatar acquired a stake in the London Stock Exchange Group (LSEG) in 2009 and reduced its stake under the eligible threshold in 2019.

LSEG proved to be one of Qatar's most impactful investments on the UK economy. Between 2009 and 2019, the business generated £7.4bn in turnover and £5.1bn in gross value added, while supporting an average of 1,221 full time employment jobs, and paying employees £1.8bn in compensation.

The report also said Qatar has committed up to £10bn over five years (starting in 2022) to invest in key UK sectors such as fintech, zero-emission vehicles, life sciences, and cybersecurity. This initiative is expected to drive economic growth, create high-quality jobs, and strengthen the bilateral relationship between the two countries.

Qatar's diverse UK portfolio includes major real estate developments, such as the upcoming Chancery Rosewood hotel in Mayfair (opening in 2025) and the redevelopment of 8 Canada Square into a sustainable mixed-use destination (beginning in 2027).

Additionally, Qatar Investment Authority's (QIA) £500mn investment in Severn Trent aims to enhance environmental performance and create 7,000 jobs across the Midlands, demonstrating Qatar's sustained commitment to supporting regional development, innovation, and infrastructure enhancement in the UK.

Gulf Times