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David Cameron encouraging greater Gulf investment in UK David Cameron encouraging greater Gulf investment in UK
(about 7 hours later)
David Cameron will seek to persuade the sovereign wealth funds in the United Arab Emirates to invest in the UK on the second day of his Gulf trip.David Cameron will seek to persuade the sovereign wealth funds in the United Arab Emirates to invest in the UK on the second day of his Gulf trip.
The Prime Minister is aiming to strengthen the UK's defence, security and commercial ties in the region. The prime minister is aiming to strengthen the UK's defence, security and commercial ties in the region.
Mr Cameron has promised not to shy away from the issue of human rights during the visit.Mr Cameron has promised not to shy away from the issue of human rights during the visit.
But he is likely to have a difficult meeting with the king of Saudi Arabia, says BBC correspondent Frank Gardner.But he is likely to have a difficult meeting with the king of Saudi Arabia, says BBC correspondent Frank Gardner.
Britain is looking to sell Typhoon jets to Dubai and Saudi Arabia, despite allegations of human rights abuses.Britain is looking to sell Typhoon jets to Dubai and Saudi Arabia, despite allegations of human rights abuses.
Since arriving in the UAE, Mr Cameron has attended trade shows and held behind-the-scenes discussions with rulers and business leaders, in what is one of the richest countries in the world.Since arriving in the UAE, Mr Cameron has attended trade shows and held behind-the-scenes discussions with rulers and business leaders, in what is one of the richest countries in the world.
Largest fundsLargest funds
Mr Cameron has given little away so far on what discussions he has had on the human rights situation, which is described by campaigners as "deteriorating" - says Frank Gardner, the BBC security correspondent.Mr Cameron has given little away so far on what discussions he has had on the human rights situation, which is described by campaigners as "deteriorating" - says Frank Gardner, the BBC security correspondent.
On Tuesday the Prime Minister is due to meet representatives of three of the largest sovereign wealth funds in the UAE, which are all focused on energy investment. On Tuesday the prime minister is due to meet representatives of three of the largest sovereign wealth funds in the UAE, which are all focused on energy investment.
David Cameron's Gulf trip this week goes to the heart of the government's dilemma over how to deal with the Arab Gulf states in the wake of the Arab Spring. David Cameron has completed the first leg of his three-nation Middle East trip in the UAE and now begins the hard part: his meeting with Saudi Arabia's King Abdullah and the Crown Prince Salman in Jeddah.
Britain has huge business and defence sales interests in the UAE and Saudi. No 10 says it hopes to boost annual bilateral trade with the UAE to £15bn (US$23bn) by 2015. As usual, the outward courtesies will all be there: the VIP reception, the ceremonial thimble cups of cardamom coffee and the polite small talk for the cameras. But privately there are real tensions in the UK-Saudi relationship, mainly in differences over the Arab Spring democracy movement.
The Foreign Office also sees both countries as vital strategic partners in confronting Iranian power in the region and there is talk of building a long-term defence partnership with Abu Dhabi. The Saudis have told me they are "insulted" by the prospect of a UK Parliamentary inquiry into relations between the two countries. They say they believe its been prompted by activists working to an Iranian agenda in the Gulf.
But the overthrow of unpopular Arab regimes elsewhere last year has energised public debate about how the Gulf states are ruled. The King is also likely to complain to David Cameron about a London-based Saudi dissident, Dr Saad Al-Faqih. The Saudi leadership considers him implicit in terrorism but Britain has seen no reason to arrest him.
Even in the tranquil UAE, a small but growing number of anti-government activists have been imprisoned, a move condemned by the EU. The issue may well overshadow Number 10's bid to sell more Typhoon jets to Saudi Arabia on top of the 72 already ordered.
Mr Cameron knows he must raise the thorny issue of human rights with his hosts. He also knows that if he pushes too hard then Britain risks losing major contracts to countries that ask no questions.
Later he flies to Saudi Arabia - where he will meet the country's King and Crown Prince.Later he flies to Saudi Arabia - where he will meet the country's King and Crown Prince.
The BBC's Frank Gardner, who is travelling with Mr Cameron, says the meeting is likely to be awkward.The BBC's Frank Gardner, who is travelling with Mr Cameron, says the meeting is likely to be awkward.
Last month Saudi diplomats said they were insulted by the idea of a parliamentary inquiry in Britain into UK-Saudi relations.Last month Saudi diplomats said they were insulted by the idea of a parliamentary inquiry in Britain into UK-Saudi relations.
The review was announced in September by the Foreign Affairs Committee, which is also looking into relations with Bahrain.The review was announced in September by the Foreign Affairs Committee, which is also looking into relations with Bahrain.
Saudi Arabia's rulers are also irritated that the government will not move against a Saudi dissident living in London, whom they consider to be involved in terrorism.Saudi Arabia's rulers are also irritated that the government will not move against a Saudi dissident living in London, whom they consider to be involved in terrorism.
Saad al-Faqih - who runs the Movement for Islamic Reform in Arabia - has lived in the UK since 1993.Saad al-Faqih - who runs the Movement for Islamic Reform in Arabia - has lived in the UK since 1993.
Both the UAE and Saudi Arabia have been criticised for alleged human rights abuses, but they have rejected these criticisms.Both the UAE and Saudi Arabia have been criticised for alleged human rights abuses, but they have rejected these criticisms.
They have warned that if Britain continues to support calls for reform, prompted by anti-government activists, they will increasingly give lucrative deals to Asian partners instead.They have warned that if Britain continues to support calls for reform, prompted by anti-government activists, they will increasingly give lucrative deals to Asian partners instead.
Speaking in Dubai on Monday, Mr Cameron said: "On human rights, there are no no-go areas in this relationship.Speaking in Dubai on Monday, Mr Cameron said: "On human rights, there are no no-go areas in this relationship.
"We discuss all of these things but we also show respect and friendship to a very old ally and partner."We discuss all of these things but we also show respect and friendship to a very old ally and partner.
"We have one of the strictest regimes anywhere in the world for sales of defence equipment but we do believe that countries have a right to self-defence.""We have one of the strictest regimes anywhere in the world for sales of defence equipment but we do believe that countries have a right to self-defence."
It is Mr Cameron's second visit to the United Arab Emirates and Saudi Arabia as prime minister.It is Mr Cameron's second visit to the United Arab Emirates and Saudi Arabia as prime minister.
No 10 says the UK is looking to sell about 100 Typhoon jets to the UAE and Saudi Arabia as well as building closer defence and security ties.No 10 says the UK is looking to sell about 100 Typhoon jets to the UAE and Saudi Arabia as well as building closer defence and security ties.