Qatar’s financial footprint in the United Kingdom continues to expand, with a total exposure estimated at £7.8 billion, underscoring the Gulf state’s deepening economic ties with Britain, according to a new report by the UK-based Centre of Economics and Business Research (CEBR).
The report, unveiled this week, reveals that Qatari banks hold approximately £4.8 billion in the UK through investments and credit facilities, while the Qatar Central Bank (QCB) has maintained a long-standing gold custody account with the Bank of England. As of November 2024, the QCB’s UK investments include £6.9 billion in gold custody and £240.9 million in UK Treasury Notes.
The British pound also remains a key part of Qatar’s currency reserves, ranking as the fifth-largest reserve currency in the QCB’s portfolio with £1.63 billion, representing 2.87% of total foreign reserves.
Consumer activity also reflects Qatar’s robust economic engagement with the UK. In 2023, Qatari-issued bank cards were used in over 8.5 million transactions in the UK, amounting to £966 million in spending, CEBR said.
Remittance flows further emphasize the bilateral financial relationship. Nearly 15,000 UK nationals working in Qatar sent £303.3 million in remittances to the UK, contributing to domestic consumption, savings, and investment.
“The steady volume of remittances highlights the significant presence of British expatriates in Qatar and their economic contributions back home,” the report stated.
Qatar’s involvement in the UK financial sector has evolved over time. The country’s investment in the London Stock Exchange Group (LSEG), acquired in 2009 and partially divested by 2019, proved to be particularly impactful. Over a decade, LSEG generated £7.4 billion in turnover and supported over 1,200 full-time jobs, paying £1.8 billion in wages.
Looking ahead, Qatar has pledged to invest up to £10 billion over five years—starting in 2022—into key UK sectors, including fintech, zero-emission vehicles, life sciences, and cybersecurity. These investments aim to spur innovation, create high-quality jobs, and solidify the UK-Qatar economic partnership.
Qatar’s diversified UK portfolio also includes major real estate projects such as the Chancery Rosewood hotel in Mayfair, set to open in 2025, and the transformation of 8 Canada Square into a sustainable mixed-use development beginning in 2027.
In the Midlands, the Qatar Investment Authority’s £500 million investment in water company Severn Trent is expected to create 7,000 jobs and enhance environmental performance, reflecting Qatar’s broader commitment to regional development and infrastructure in the UK.
