JEDDAH: GCC nationals are facing a threat to their investments in the United Kingdom, especially in the real estate sector, the secretary-general of the Federation of GCC Chambers said in an interview with Aleqtisadia newspaper.

“Recent fluctuations in real estate prices in Britain [constitute] significant obstacles to those who aspire to invest or those wishing to continue their investments,” Secretary-General Abdulraheem Naqi said.

Also, Britain’s imposition of new taxes in recent years “negatively affect the budgets of foreign investors, including GCC nationals,” he said, adding that the taxes imposed on companies are the highest.

Naqi said that a large portion of GCC investors in the UK do not know much about the British tax system and depend on their consultants to inform them about their investments.

Some investors do not even understand the concept of tax, not to mention novel taxes and any changes to tax laws that the government imposes, he said.

Another issue that investors fear is the fluctuation of the British pound, especially as questions arise over what might happen as the UK prepares to exit the European Union.

He also cites the British government’s lacking support of the Islamic banking sector – which has grown in recent years – as an obstruction to the investments of GCC nationals in the UK.

The absence of free-trade agreements between the UK and GCC countries has also impacted the commercial and investment situation, he said.

According to the official, the cost of foreign investment in the UK is high compared to other countries. GCC nationals investing in Britain typically pay large sums in the form of fees to different entities and “the investors’ unawareness of the incentives and advantages the British government offers to encourage foreign investments prevent investors from benefiting from them,” Naqi said.