DP World Ltd. is reconsidering a significant investment at its London port after the British government criticised employment practices at one of its subsidiaries.
The Dubai-based logistics company had planned to announce a £1 billion ($1.31 billion) expansion of its London Gateway port during an investment summit hosted by UK Prime Minister Keir Starmer and Chancellor of the Exchequer Rachel Reeves next week, according to a source familiar with the situation.
However, following Transport Secretary Louise Haigh’s comments earlier this week, where she described some of P&O Ferries' employment practices as "unscrupulous" and "exploitative," DP World’s Chairman and CEO, Sultan Ahmed bin Sulayem, has reportedly withdrawn from attending the summit.
This decision deals a blow to Starmer’s efforts to reposition the UK as a business-friendly country. The investment would have created hundreds of jobs and increased London Gateway’s capacity by 50% by adding two berths for deep-sea vessels. A DP World spokesman confirmed that the investment is now under review.
Earlier this week, Haigh said the government was pushing through legislation aimed at closing a "legal loophole" that P&O Ferries had exploited in 2022, when it dismissed nearly 800 seafarers and replaced them with lower-paid agency staff.
A UK government official indicated that discussions on the matter were ongoing, though representatives from key government departments did not immediately respond to requests for comment.
DP World’s decision to reconsider its investment comes at an awkward time for Starmer, who is preparing to host the investment summit on Monday. His top officials have pointed to former Prime Minister Rishi Sunak’s decision to call an early election, which brought Labour to power sooner than expected, as a factor limiting the time to organise such a high-profile event.
Additionally, some financiers in London have questioned the timing of the summit, given that Reeves has not yet presented the budget, which could restrict what announcements can be made before the 30th of October.
DP World’s decision also highlights growing tensions between the UAE and the UK. Earlier this year, relations were strained when Britain joined the US in urging the UAE to cease supporting the Rapid Support Forces in Sudan. The UAE has repeatedly denied providing weapons to the group.
Despite these challenges, the UAE remains an important trade partner for the UK, having pledged around £15 billion in investments to support sectors such as life sciences and energy transition. The UAE is also considering further investments in the UK, including projects at Heathrow Airport and the Sizewell C nuclear facility. Britain, meanwhile, is hoping to secure a free trade deal with the Gulf Cooperation Council.
Source:
BNN Bloomerg
