Mr Dowden’s intervention, made under the recently introduced and sweeping powers of the National Security and Investment Act, comes as ministers also scrutinise an Abu Dhabi-funded takeover of The Telegraph.
Ofcom is investigating whether the deal is a threat to press freedom. Senior Conservatives have demanded a parallel scrutiny of the potential threat to national security, but there has been no announcement. However, such investigations are often not disclosed until they have been completed.
The regulator is currently reviewing the deal’s impact on press freedom and had been scheduled to report back to the Culture Secretary Lucy Frazer by Friday, though this deadline could be pushed back after RedBird IMI told officials it had created a new corporate structure under which it intended to own The Telegraph.
The UAE’s swoop on Vodafone was part of a wave of oil-rich Gulf states buying into sensitive industries in the West, which sparked alarm among some security officials.
Saudi Arabia’s move to take a 9.9pc stake in the Spanish equivalent of BT, Telefonica, in December prompted ministers in Madrid to buy a 10pc stake in a company which was privatised in 1997.
In the United States, national security officials are vetting a string of takeovers by Abu Dhabi investors over fears about the UAE’s ties to China. It was revealed in November that the Committee on Foreign Investments in the United States (CFIUS), a secretive group which scrutinises foreign takeovers of US companies, was conducting the work.
Officials are concerned that takeovers of sensitive US assets from funds in the Gulf could harm national security because of China’s growing influence in the region. UAE has fostered closer relations with China and Russia in recent months.
Deals involving Abu Dhabi funds are viewed as particularly worthy of scrutiny because investment decisions are made by a small band of royals. The planned takeover of The Telegraph is 75pc funded by Sheikh Mansour bin Zayed Al Nahyan, the vice president of the UAE.
Robert Johnson is a UK-based business writer specializing in finance and entrepreneurship. With an eye for market trends and a keen interest in the corporate world, he offers readers valuable insights into business developments.
