Manchester city council granted Abu Dhabi United Group (ADUG), owned by Sheikh Mansour, preferential access to property developments in the city under a decade-long agreement signed in 2015, documents released under freedom of information legislation show. The contract, which expired in 2025, enabled ADUG to have the “first offer” on land identified for residential and commercial development, primarily in the Ancoats and New Islington areas.

ADUG, which owns Manchester City Football Club and has investments including a stake in the Co-op Live Arena and several large residential blocks in eastern Manchester, entered a joint venture named Manchester Life with the city council to manage any agreed developments. The arrangement aimed to promote infrastructure provision and land assembly while fostering urban regeneration.

A council source defended the partnership, highlighting that Manchester Life facilitated a £1.25 billion regeneration programme that delivered approximately 1,500 new homes, preserved two historic mills, and created 30,000 square feet of commercial space, yielding returns reportedly above market expectations for the council.

However, some local property developers have criticized the deal as overly favorable to the Abu Dhabi firm, alleging that it hindered competition from British-based investors by offering ADUG preferential treatment. One major regional developer described the agreement as a “sweetheart deal” with “red carpet treatment” for the Abu Dhabi company, which purportedly “held some of us back.”

The deal has come under additional scrutiny amid the football club’s recent disciplinary case, in which Manchester City was found guilty of inflating revenue and reducing costs by over £900 million, primarily through inflated sponsorship deals funded by ADUG. Manchester City has appealed the ruling. The controversy has heightened attention on the scale of ADUG and broader UAE investments in the UK, especially in Manchester.

Andy Burnham, mayor of the Greater Manchester Combined Authority since 2017, two years after the deal’s inception, recently praised ADUG as a “huge partner” in the city’s development. Following his remarks, Downing Street issued clarifications emphasizing that any wrongdoing must be addressed and that no individual or entity is above the rules, substituting “if” with “wherever” in relation to established misconduct.

The contract’s named council contact was Sir Howard Bernstein, Manchester city council’s chief executive at the time, who departed in 2017 and later became a strategic adviser to Manchester City’s parent company until his death in 2024.

In July, Manchester city council published a review of its private-sector development agreements, acknowledging weaknesses in documentation and monitoring but also recognizing the significant benefits delivered through these partnerships.

Meanwhile, reports indicate that the UAE may reconsider a multibillion-pound investment in a high-technology hub located between Oxford and Cambridge amid the growing controversy. The Liberal Democrats have called for Burnham to disclose any prior meetings with ADUG and to declare any hospitality received at the Etihad Stadium.

Manchester City has rejected allegations that the disposal of public land was mishandled or that the council did not financially benefit from the partnership.