Andy Burnham oversaw the approval of a £55 million taxpayer loan to property companies owned by entities linked to the United Arab Emirates while serving as mayor of Greater Manchester. The funding was directed to three Jersey-based firms ultimately controlled by Sheikh Mansour bin Zayed al Nahyan, a member of the Abu Dhabi royal family, vice-president and deputy prime minister of the UAE, and owner of Manchester City Football Club.
The loan approvals took place during two meetings in 2017 of the Greater Manchester Combined Authority (GMCA), both chaired by Burnham. The money came from the Greater Manchester Housing Investment Loan Fund (GMHILF), a government-backed £300 million fund designed to support housing projects in the region by providing financing where other sources might be unavailable or insufficient. The GMCA had stated the fund aimed to "kick-start housing projects that would otherwise be difficult to fund from elsewhere."
The revelation marks the first public evidence of Burnham’s direct involvement in financial decisions benefiting Abu Dhabi-linked firms. Sheikh Mansour’s investment vehicle, Abu Dhabi United Group (ADUG), has since repaid the loans with interest, although the terms and interest rate have not been disclosed.
Critics have raised questions about the appropriateness of the loan, noting that Sheikh Mansour is among the world’s wealthiest individuals and questioning why the companies could not have obtained financing through private channels. Louie French, the shadow sports minister, questioned why taxpayer money was used to support businesses capable of securing commercially viable loans, characterizing the approval as lacking transparency.
John Leech, Liberal Democrat chair of the GMCA overview and scrutiny committee, also noted that the loans appeared inconsistent with the fund’s stated aim, indicating that the committee would investigate the matter further. Both critics expressed concern about whether the fund’s resources were being used appropriately, given the background of the recipients.
The disclosures follow a contentious period involving Burnham and Manchester City. Last month, the Premier League found the club guilty of financial irregularities, sparking debate over Burnham’s initial remarks expressing concern if the UAE owners sold the club. The UAE has since appealed the ruling and threatened to withdraw from UK investment projects in response to the verdict.
The revelations come amid broader scrutiny of Abu Dhabi's financial involvement in Greater Manchester, including past reports that Manchester city council paid significantly more than other bidders for a retail park intended for Abu Dhabi-backed development.
While sources connected to Burnham previously downplayed his role in the loan approvals, GMCA records confirm he chaired the relevant meetings. The decisions were taken collectively by GMCA members. Both Burnham’s office and Greater Manchester Combined Authority declined to comment on the matter.
In a related development, in 2024 the UK government blocked an attempted takeover of The Telegraph by a UAE-backed consortium, highlighting ongoing complexities in investment relations between the UK and Abu Dhabi.