Gulf investors hold back from UK on Brexit fears

Dubai

GULF Arab investors, some of the biggest buyers of British real estate, are holding back from new deals because they fear a property price slump if Britain leaves the European Union, according to legal and investment sources.

Sovereign and private investors from Qatar, Saudi Arabia, Kuwait and the United Arab Emirates have been prolific buyers of British assets in the past decade, snapping up billions of dollars worth of property, mostly in London. "Sovereign wealth funds are concerned that Brexit is taking its toll on the property market in London," said a London-based lawyer who works with some of the largest Gulf funds.

He declined to be named, citing the confidential nature of his work. "The situation will further deteriorate if there's a Brexit vote." The value of residential property in upmarket areas popular among Gulf investors - including Chelsea, South Kensington and Knightsbridge - fell between 3.5 and 7.5 pe…