The flow of wealth between the UK and the Middle East is far from one-sided. While many in Britain’s wealth sector are relocating to the Gulf, Middle Eastern investors are increasingly drawn to opportunities in the UK—particularly in commercial property.
Private capital from family offices and ultra-wealthy individuals has already committed around £245 million to UK real estate this year, according to Knight Frank, a tenfold increase on the £25 million recorded in 2024. The focus is on industrial and logistics assets, where resilient occupier demand and rising rents are creating strong income prospects.
Oryx Real Estate Partners, backed by AlRajhi Partners, is among those betting heavily on this trend. Having raised over £100 million for its first UK logistics development fund, Oryx plans to develop high-spec industrial projects across undersupplied submarkets, targeting returns of around 18 per cent. Its co-founder Johan Eriksson sees today’s conditions as the most compelling entry point since the global financial crisis, with value corrections, tenant demand and stabilising costs all aligning.
While hybrid working has dampened demand for some office stock, prime properties in strong locations remain competitive, and investors are cautiously re-entering retail through segments such as retail parks and top-tier high streets.
For Middle Eastern investors, the UK retains its appeal thanks to its trusted legal system, global connectivity and depth of professional expertise. London continues to be the leading city for cross-border property investment, attracting $9.6 billion in 2024, but there is also growing appetite for regional hubs such as Manchester, Birmingham and Leeds, as well as the logistics-rich “Golden Triangle.”
The approach of Middle Eastern family offices is also evolving. Rather than trophy assets, they are now prioritising yield and long-term resilience. Some prefer direct ownership to retain control, while others rely on specialist managers. In both cases, investors are seeking yields above 7 per cent for income plays and around 15 per cent on development projects.
As Eriksson notes, this could be a generational buying opportunity: disciplined capital, patient holding periods and selective acquisitions may deliver substantial returns as the UK market rebounds.
