15 JUNE 2026AlCircle.com

UK and Japan announce $24B investment deal focused on infrastructure and clean energy

2 min read

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Japan and the United Kingdom have unveiled a series of agreements that could lead to Japanese companies investing up to USD24 billion (EUR 18 billion) in Britain over the coming years.

The announcement followed talks in London between UK Prime Minister Keir Starmer and Japanese Prime Minister Sanae Takaichi ahead of the G7 Summit in France. Starmer said the agreements marked a "new era of co-operation" between the two countries.

Under the package, about USD 12 billion is expected to be invested in British infrastructure and financial services, while a further EUR 9 billion is earmarked for offshore wind and other renewable energy projects. The UK government said the investments could support the creation of tens of thousands of jobs.

Japanese property and investment groups Mitsubishi Estate, Mitsui Fudosan and Nomura Real Estate are among the companies expected to participate. They plan to invest billions of pounds in UK property and infrastructure projects over the next five years.

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The announcement comes as Britain seeks to attract fresh overseas investment at a time of increasing global economic uncertainty. The UK economy grew 0.6 per cent in the first quarter of the year, the fastest pace among G7 nations, although the International Monetary Fund (IMF) has warned that tensions in West Asia could weigh on the country's economic outlook.

The two leaders also discussed defence cooperation and reaffirmed their commitment to the Global Combat Air Programme (GCAP), under which the UK, Japan and Italy are jointly developing a sixth-generation fighter aircraft.

Alongside the investment plans, London and Tokyo agreed to expand cooperation in advanced technology and nuclear energy. Under one of the agreements, Rolls-Royce will work with the Japan Atomic Energy Agency on next-generation nuclear technologies. Another initiative will combine British research, development and software expertise with Japanese manufacturing capabilities.

The announcements also come as countries seek to broaden trade and investment links and reduce reliance on the United States for imports and exports. In recent months, the UK has also been pursuing closer economic and trade relations with the European Union and India.