SWF Radar UK

UK shadow chancellor George Osborne said in a speech at the UK think tank Demos yesterday that, “A third of developed countries now have a national investment fund instead of national debt. Yet sadly the idea of a British Sovereign Fund investing for the generation who come after us is a distant dream.”

In January this year Osborne hinted at the need for a UK sovereign fund.

The Independent reports that, “The Scottish government is in talks with two Middle Eastern sovereign wealth funds to provide the cash for a £4.8bn offshore energy grid, to be built off the east coast of the UK.”

The Times writes that, “Britain has squandered its natural resources wealth in the North Sea and is paying for its failure to plan for the future, according to Sam Laidlaw, the chief executive of Centrica, the owner of British Gas.”

The Observer quotes Angel Gurria, head of the Organisation for Economic Co-operation and Development (OECD), as saying in an interview that, “We constantly preach to developing countries that they should open markets. Suddenly we become closed and protectionist. This is before sovereign wealth funds. With them, it is even worse.”

The article adds that, “Gurria has no sympathy for Britons nervous about the long rumoured prospect of Gazprom, the giant energy firm regarded by some as an extension of Russian foreign policy, buying UK energy firms. Never mind the rows between BP and its Russian partner, he says, any investment should be judged [exclusively] on competition, corporate governance and corporate social responsibility criteria.”

ArabianBusiness.com reports that, “The British building industry could be bought for the price of a single Middle Eastern mega project, analysis of the value of the country’s largest companies reveals.”

The Shanghai Daily quotes David Lewis, Lord Mayor of the City of London, on business delegation to Shanghai, as saying that, “Shanghai deserves to be among the world’s top 10 financial centers, because it has a developed infrastructure, a recognized brand name and perceptions outside China of what it should be.”

The Guardian reports that, “Foreign sovereign wealth investors are targeting London’s hedge fund industry as they seek to boost returns on their vast savings, much of it generated from trade with the west in oil and other commodities. The hedge funds have seen billions of pounds pour into their investment plans at a time when the industry desperately needs cash to replace debt funding that collapsed during the credit crunch.”

The Observer writes that, “Given Britain’s unique standing in Qatar as the former colonial power and benefactor, it isn’t surprising that UK companies and assets are top of the QIA’s shopping list.”

China Daily reports that, “There will be 100 Chinese companies listed on the London Stock Exchange (LSE) by 2010, jumping from the existing 74, the Lord Mayor of the City of London [David Lewis] said on Friday.”

According to the article, Lewis also said that the China Investment Corporation (CIC) and the State Administration of Foreign Exchange (SAFE) have both shown interest in London’s property market.

“CIC’s spokeswoman Bai Xiaoqing said that the sovereign fund spoke about such investment opportunities with the City of London but has not made any material investment so far,” the article adds.

The Financial Times writes that, “The Qatar Investment Authority has had a rough time during the past year in the UK. But the £1.8bn it is investing in Barclays, along with another £530m from the chief executive of the QIA, Sheikh Hamad bin Jassim Al Thani, shows that Qatar continues to see London as a home from home.”