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Kuwait, Saudi Arabia, Qatar to pay for Brexit

June 28, 2016 at 2:31 pm

Economic sources estimated the size of Gulf investments in the UK in the real estate, capital markets and sovereign funds to be worth more than $250 billion, Kuwait’s Al-Shahid newspaper wrote.

Meanwhile, a growing number of investors believe the Gulf states’ capital markets will fall by 12-14 per cent if they do not take precautionary measures or find alternatives for their investments due to the decline in asset values and currency depreciation.

According to the sources, Saudi Arabian interests in the UK represent 55 per cent of Gulf investment followed by Qatar with 20 per cent and Kuwait with 18 per cent while the rest of the Gulf states share the remaining seven per cent.

Meanwhile, Britain is afraid the Gulf countries will reduce their investment rate by 25-35 per cent.

Arab and Gulf investors mainly invest in the British real estate sector.

Sources revealed that 16 Kuwaiti companies operating in Britain are trying to sell their assets without making losses. However sources in the Kuwaiti Investment Authority said the country’s investments were fine and will not be affected by Britain’s departure from the EU.