LONDON — London is the gateway to Europe. It is the favorite place for Arab tourists, predominantly from the Gulf Cooperation Council (GCC) states, who fly into to it during their vacations and spend thousands of British pounds. The popularity of the city makes it a fertile soil for GCC businesses and investments. There has been a growing move by London City Hall to attract investors from the Gulf region. “People are familiar with London. They are comfortable with the English language and the rule of law here, which is very important for the investor. English law is very simple, straightforward and fully understood. Not to mention that it is the right time zone here between the Middle East and the USA,” said Sir Edward Lister, the Deputy Mayor of London while speaking to the press at the City Hall. The Mayor of London, Boris Johnson, keeps a close relation with the Gulf States. He regularly visits the region as the relationship between the two sides is a two-way street. While thousands of GCC nationals visit London and some reside here, the British presence in Dubai alone is the third largest abroad. UK businesses are also encouraged to step foot in the Gulf. “I think there are so many business links between the UK and Saudi Arabia. It is clear that these are two countries that understand each other and are able to do business with each other, whether it's trade or investment,” said Dominic Jeremy, Chief Executive of the UK Trade and Investment (UKTI), a government department which encourages overseas companies to invest in the UK. “We are open to Saudis to come and benefit from participating in the UK,” he told the Saudi Gazette. Seeing Arabs from the GCC strolling the high-end neighborhoods of the Royal Bureau of Kensington and Chelsea, in southwest London – down the street of Knightsbridge and Sloane Square – is usual around the year. Many owned their properties, a step that is welcome by London. The City Hall encourages Gulf property companies to look at London for investment purposes. After the financial crisis swarmed the area in 2008, the banking sector dropped back, and the demand rose to find an alternative. Construction was one of the growing strengths in the city. It is bigger than any other city in Europe. “In fact, many of these cranes have Gulf money at the back of them one way or another,” Sir Lister added, while pointing at London's landscape through the window with The Shard standing tall in the horizon. For the second year in a row, London is the most visited tourist city in the world. It attracts more than 16 million international visitors a year who spend GBP11.3 billion in total. The West End shopping area continues to attract more people strolling down Oxford Street, to Bond Street and Regent Street. The retail base is strong here. As Londoners are great shoppers, so are GCC nationals. It is the place where retailers can do well. “The fashion sector is now one of the main drivers for London economy. It contributes with GBP8 billion,” Sir Lister said. The City Hall represented by London and Partners help foreign investors, who wish to expand in London, get established by connecting them with the right companies. “You can get a company registered in this country in a matter of days. It is easy.” As London is one of the most expensive capitals in the world, the operational costs of setting up a business are high, but so is the population, which boosts the potential purposes. The UK capital that is home to a population of 8.6 million is what the deputy mayor describes as “an even playing field.” In 2013, West End spends were estimated at GBP8.5 billion followed by Paris at GBP7.7 billion and Madrid at 5 billion. There are 800,000 small and medium-sized enterprises (SMEs) in London. The UK's luxury sector is expected to be worth GBP12.2 billion by 2017. Gulf retailers are having their place in the British Capital's West End shopping scene. Places such as Arabian Oud and Bateel, in Oxford Street and Bond Street, moved their success stories from their home in Saudi Arabia to achieve an offshore ambition. They bring a familiar homey feel to London's shopping district that is popular by Arabs and ranks first for retail spend among 15,000 cities and towns in Europe. Qatar-owned Chapati and Karak teahouse in Knightsbridge also sets an example of a business project that was established in Doha and moved to London where it succeeded in provoking curiosity of the luxurious neighborhood's passersby to try the culinary delights of pastry and tea within traditional ambience. As a move to promote investment in London to business owners from the GCC, the UK Trade and Investment (UKTI) along with the British Embassy in Dubai have launched The 2015 GREAT Business Award. The competitors should be main shareholders in their company and must be nationals or residents of the six Gulf states. The award will include a business development program in London offering a mentorship session with a UK based retail leader. It will moreover include a consultancy session with accountants and lawyers on the logistics and technicalities of setting up business in the UK from work visas to the taxation system. This initiative aims to tell GCC businesspeople that London is the place to go if they want to take their businesses and invest overseas and is the first destination in Europe to pour their money. Speaking ahead of the award launch, Richard Wildash, Deputy Head of Mission at then British Embassy in Riyadh said the UK remains a highly attractive destination for Saudi investment. Saudi companies and individuals collectively own assets worth GBP60 billion. “We intend to continue to do our utmost to support Saudi businesses, both large and small, in building vibrant commercial partnerships, bringing even more investment into the UK,” Wildash added. This competition is set to run until the end of March 2015.
