Britain plans to allow the acquisition of more high-profile British companies by investment funds controlled by foreign governments has been applauded by a British business leader in Dubai.

British Business Group chairman Mark Beer says new UK Chancellor Alistair Darling has followed up on the comments he made in Dubai earlier this year to enhance the links between the UK and Gulf states.

Darling has made it clear since taking office that he is resisting calls for greater protection of British companies from acquisition by overseas interests, and Beer believes this is another positive contributor to the strengthening of business links between the UK and the UAE, and the Gulf in general.

“Recent reports show that Gulf companies have made foreign acquisitions worth more than $40 billion since the beginning of this year, and Dubai is an important stakeholder in this growing trend,” said Beer, who had a lunch meeting with Darling, together with other British business representatives, during his visit in June.

“He talked then about the importance of enhancing business links between the UK and the UAE, and this further supports that commitment.  It’s encouraging to see that he has taken such a firm stance regarding protectionism since becoming Chancellor.

 “The liberal investment climate in the UK reflects the investment climate which has been created here in Dubai by the Government, and this is something the BBG supports strongly as part of our overall commitment to reinforce business links between the UK, Dubai and the Northern Emirates.

Beer wrote to Darling to congratulate him after new Prime Minister Gordon Brown promoted him to Chancellor from his previous post as Minister for Energy at the Department for Trade and Industry.

Said Beer: “Considerable sums of money are being channeled by Dubai, and the Gulf in general, into overseas investments, which is a sign of the efforts companies and governments in this region are making to globally diversify their asset and income base outside their home markets. It also shows how Gulf states are looking to reduce their reliance on oil as a source of income.” TradeArabia News Service