In what could be the first of several billions in pounds of funding in the UK, an Abu Dhabi investment fund has decided to spend £800 million in UK life sciences.
Mubadala, among the most active funds in the UAE, will invest the money over a five-year term.
According to the Financial Times, Abu Dhabi plans to invest extensively in British health, technology, renewable energy, and infrastructure. Investments in other markets are expected to be of a similar magnitude. According to the Financial Times, the overall investment could be worth up to £5 billion.
The UK government said Mubadala's investment in UK life sciences would be "deployed alongside the UK's £200m Life Sciences Investment Programme", which was announced last year.
"This partnership will enable the UK life sciences sector to develop cutting-edge technologies and research while retaining homegrown innovation and jobs," said the UK Minister for Investment, Gerry Grimstone.
"It will also leverage the UK and UAE's mutual priorities in building better and stronger economies through investment."
On Tuesday, the minister had told the FT: "We think the future opportunities are very, very sizeable."
Abu Dhabi is trying to diversify its economy away from oil and gas.
Khaldoon Khalifa Al Mubarak, group chief executive of Mubadala, said: "Mubadala is already a long-term investor in UK innovation and growth, and our new partnership now provides a platform to allocate stable capital to priority sectors as part of a future-focused investment relationship."
The announcement comes in the wake of reports that the UK is establishing four regional trade and investment hubs to fuel economic development across the country, as well as the removal of tariffs on certain US products imposed in response to a dispute over US subsidies to Boeing.
The hubs will be based in Edinburgh, Cardiff, Belfast, and Darlington, according to Secretary of State for International Trade Liz Truss.
As part of its attempts to improve pandemic recovery, the government says the new hubs will offer support and advice to help regional companies enter major trading markets and boost exports. However, some experts think the selection of venue was misguided.
Investment in the life sciences, renewable energy, and technology industries was also highlighted in the chancellor's latest Budget.
Before the COP26 climate change summit in the UK later in November, Mr. Sunak announced the development of a national infrastructure bank that will specifically invest in green projects.