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The United Kingdom is looking to increase its investments in the Middle East following news that they are seeking to purchase out a unit of the Spanish banking group, SVB Financial. The news followed after a report by Bloomberg suggested that the British government was in talks to acquire the organization’s Spanish consumer banking arm, which has branches in Barcelona, Madrid, and Malaga.
The news is evidence that the UK is looking to strengthen their financial ties with the Middle East. The news of the potential buyout came after Prime Minister Theresa May announced plans to open up the financial sector to Middle East funds, which is a part of a wider bid from the UK to deepen ties with the Middle East following the nation’s decision to leave the European Union (EU).
For the UK, this would be an attractive move as it would allow them to obtain a larger foothold in the region and open up access to capital. According to the Independent, the Consumer Banking arm of SVB Financial provides a full range of consumer banking services, including credit cards and consumer lending. The proven success of this company is expected to help the UK to gain access to a number of investment opportunities throughout the region.
The news of the acquisition has been welcomed by analysts as a positive sign and a good opportunity to help the UK strengthen its financial ties with the Middle East. While the logistics of the acquisition are yet to be finalized, it is believed that the potential move could be seen by UK as a symbol of Britain’s determination to establish a strong financial relationship with the region and gain access to a market of untapped potentials.