Qatar is set to invest £1 billion ($1.3 billion) in climate technology initiatives in the United Kingdom, with engineering firm Rolls-Royce poised to receive a portion of this funding to aid its energy transition efforts, as announced by the British government on Wednesday.
This announcement coincided with a two-day state visit to the UK by Qatar's emir, Sheikh Tamim bin Hamad Al Thani, who is scheduled to meet with Prime Minister Keir Starmer on Wednesday.
The UK is aiming to strengthen its relationship with the affluent Gulf nation, and Starmer intends to leverage this visit to secure "tangible benefits" for the UK in terms of security and economic growth, according to his spokesperson.
The investment is projected to generate thousands of jobs and establish climate technology hubs in both nations to expedite the advancement of environmentally friendly technologies, as stated by the government.
This initiative includes funding for Rolls-Royce's technology programs that enhance energy efficiency, promote sustainable fuels, and reduce carbon emissions, as well as support for startups focused on energy efficiency, carbon management, and renewable energy.
"Facilitating the energy transition through lower carbon technologies is a fundamental aspect of our strategy," said Rolls-Royce CEO Tufan Erginbilgic in a statement.
"We are pleased to welcome Qatar as a strategic partner, which will aid in the development of these technologies."
Starmer, who was elected in July with a commitment to boost economic growth, is looking to attract wealthy investors like Qatar to finance his plans for new infrastructure and energy projects.
Qatar is already a significant investor in the UK, with the Qatar Investment Authority owning the Canary Wharf business and entertainment district in East London, as well as stakes in Barclays and Heathrow Airport, among other assets.