Zabeel Investments, the Dubai-based investment group, has abandoned its bid to acquire championship club Charlton Athletic after making an offer earlier this month.

Zabeel Investments, which was proposing to buy the Championship club, has instead chosen to focus on domestic business in Dubai.

The group also cited the worsening economic climate in the UK as well as the controversy surrounding foreign ownership of clubs, as reasons for dropping any deal.

The news will come as a blow to Charlton, who had reported debts of £20 million ($31.8 million). The club are in the final year of their parachute payments having been relegated from the Premier League in 2007 and dropped to 20th in the Championship table after Tuesday night's home defeat by Bristol City.

A Zabeel spokesman said: “Zabeel Investments has the highest regard for both the supporters of Charlton and the way in which Charlton is managed, and wishes the team every success in its quest for promotion this season and moving forward.”

A Charlton spokesman said: "Zabeel Investments has made it clear to Charlton that this decision was not made as a result of any discoveries during the due diligence process."

"Contrary to press reports, Zabeel Investments has confirmed to Charlton that it has not approached any other club since it made an indicative offer for Charlton on October 10, nor has it authorised any approach on its behalf."

"In addition, Zabeel Investments has confirmed that it has no current intention to acquire any English football club for the foreseeable future."