Will Brexit Affect UK Investment?

When the Brexit vote swung in favour of ‘LEAVE’ the pound tumbled to the lowest rates seen against the US dollar in over three decades. The fiscal aftermath was brutal, but despite the slip economists are maintaining that Brexit will not have a negative effect on UK investment.

The reassurance comes from Qatar Petroleum CEO Saad Sherida al-Kaabi, who maintains that Brexit is not a game-changer for UK investment. Instead, he’s publicly confirmed that the oil and gas giant remains comfortable with its British investments, despite the nation’s referendum decision to leave the European Union.

"What happens with the economy of the UK long term with Brexit and so on really will not be a game-changer for us," he explained at a recent conference in London.

Cadbury sweetens the deal

Meanwhile, Cadbury is also fronting the pro-Brexit movement with a recent announcement confirming that it will once again manufacture all its flagship Dairy Milk bars in the UK. Despite uncertainty, parent company Mondolez has invested £75 million in its historic Bournville factory, which has helped to dissuade fears that Brexit will hurt British investment.

Could Heathrow be up in the air?

Of course, the outlook isn’t quite as sweet for other British businesses. If Theresa May fails to seal an early bilateral Brexit deal on international aviation Ryanair has warned that it may be forced to suspend UK flights for “weeks or months.” Needless to say, this would affect both share prices, and foreign investment.

Earlier this month, the Spanish owner of Heathrow Airport also warned that Brexit volatility has suspended future UK investment deals. Ferrovial chairman Rafael del Pino openly admitted that he now sees "no opportunities" in Britain, and that "Nobody, not even the UK, knows how the process and consequences [of Brexit] will be carried out."

“There could be a situation where you’re going to have get comfortable with staycations for the summer of 2019: those trips down to Portugal and Spain, unless you can swim, aren’t really going to happen,” comments chief financial officer, Neil Sorahan.

Clearly opinions clash, and until the UK finalises its EU departure there’s no real way of knowing whether or not it Brexit will have a negative impact on British investment.

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