The New BRICS Member Buying Britain

The United Arab Emirates has transformed from a collection of small oases and pearl diving villages into one of the world’s most important trade, tourism and investment destinations. Strategically located between Europe, Africa, and Asia, the federation is well positioned to capitalize on the high economic growth rates of nearby emerging markets. This explains the UAE’s decision to join the BRICS. But the federation’s rulers are also investing heavily in the United Kingdom.  

The UAE has a long colonial history. Islamized in the 7th century, the Portuguese Empire arrived a thousand years later, disrupted the Arab trade networks, and took over taxation from the Sultan of Hormuz. Subsequent conflicts between the maritime communities and the British led to the sacking of Ras Al Khaimah in the early 19th century, resulting in a number of British treaties with the local rulers. The seven sheikdoms eventually formed the UAE after British forces left the region in the late 1960s.

Today, the Emirates are major oil exporters with highly diversified economies. The capital Abu Dhabi hosts a Formula One Grand Prix while Dubai is home to the largest man-made seaport and the world’s tallest building. But not only have these initially small trading outposts in the desert revolutionized their economies without changing their political and religious character, they are now beginning to exert their influence on other countries and the British public is growing increasingly concerned. 

Dubai Ruler Is One of UK’s Biggest Landowners

Concerns about the growing power of the UAE first arose in the UK after the controversial ruler of Dubai acquired a substantial property empire in Britain estimated to exceed 100,000 acres. This made Sheikh Mohammed bin Rashid al-Maktoum one of the UK’s largest landowners. The sheik’s property portfolio is believed to include farmlands, mansions, and stables, ranging from multi-million-pound houses in London to lavish estates in the Scottish Highlands.

The true scale of the Sheik’s landholdings is uncertain because many of the properties are held by offshore companies in British tax havens. Nevertheless, his property portfolio has enabled him to rub shoulders with the royal family at famous horse races and is estimated to exceed the personal holdings of the King. This raises intriguing questions about what sort of influence the UAE is able to wield within the UK’s political establishment and for what purpose.

The British media first raised this concern after Sheikh Mohammed was alleged to have abducted his daughter, Shamsa, when she ran away from home in August 2000. The family were in the UK at the time and it is believed that the Sheik locked his daughter up in one of his London properties before flying her back to Dubai. She has not been seen in public since. In the resulting high court case, Princess Haya, the Sheik’s sixth wife, alleged the police inquiry into Shamsa’s abduction was halted after Sheikh Mohammed put pressure on the UK government to abandon the investigation.

The Foreign Office denied intervening in the case but refused to disclose any of the information it held, claiming that doing so would undermine the government’s ability to protect and promote its interests through its relations with the UAE. This incident contributed to the perception that Sheikh Mohammed has been allowed to operate with impunity in Great Britain due to his wealth and political influence, and underlies concerns related to the recent announcement that another UAE royal intends to acquire a set of prestigious British newspapers.

Abu Dhabi Royal Buying Iconic British Newspapers

There are significant concerns in the UK regarding the intricate arrangement by the Barclay family to transfer control of the Telegraph and the Spectator newspapers to RedBird IMI. RedBird IMI primarily receives funding from Sheikh Mansour bin Zayed al-Nahyan, the vice-president of the UAE and owner of Manchester City football club. Sheikh Mansour is believed to be covering the £1.16bn debts owed by the Barclay family to Lloyds bank, with the goal of converting the loan payments into ownership of the prized British publications. Founded in 1855, the Telegraph is considered a newspaper of record, while the Spectator, founded in 1828, is the oldest surviving weekly magazine in the world.   

Several MPs have criticized the proposed takeover, backed by the UAE, cautioning against the difficulty of “separating sheikh and state.” These lawmakers are advocating for further investigations before the deal potentially becomes problematic for the government. Conservative MPs have emphasized concerns about potential editorial interference at the newspapers. However, the situation is complicated by the fact that newspaper assets are not covered by the National Security & Investment Act, which allows the government to scrutinize and potentially block deals involving nationally significant British assets.

John Nicolson, a Scottish National Party MP, raised concerns about the Telegraph becoming a “loss-making PR arm of a foreign state”, with access to Britain’s daily news cycle. The politician suggested the sale could pose a challenge to the UK’s democratic principles. This certainly sparks a debate about media freedom and whether a free press means anyone should be allowed to buy a newspaper and choose their own editorial position, or if governments should intervene to safeguard national interests.

In contrast to Russia and China, where foreign-owned media is prohibited, the UK currently allows it. Nevertheless, the British government has issued two public interest intervention notices, urging Ofcom and the Competition and Markets Authority to examine potential issues, including the accurate presentation of news, free expression of opinion, and a sufficient plurality of views. But considering the current legal framework in the UK, the buyers from the UAE appear to have the upper hand.

Media reports about the UAE’s rulers mingling with the royal family, subverting British law, and taking control of the country’s newspapers, has naturally led to concerns about the growing influence of foreign authoritarian leaders. That said, considering world history, many might feel the Brits are simply getting a taste of their own medicine. One thing, however, is for certain. The BRICS and its new members, such as the UAE, are beginning to exert significant economic and political influence across the globe.