The Abu Dhabi sovereign wealth fund that specialises in innovative companies is reportedly set to invest £4bn in life sciences, technology, clean energy, health and infrastructure in the UK over the next five years.

The $232bn Mubadala fund was set up by the oil-rich Emirate’s rulers to diversify its interests and has been increasingly targeting clean energy projects and tech firms.

It is understood, that as part of the agreement, the UK government will commit £200m across the five sectors every year until 2026 alongside Mubadala’s annual commitment of £800m.

Khaldoon al-Mubarak, Mubadala’s chief executive, reportedly said: “It will be a sizeable number, appropriate for these sectors in order for us to make the right scale and returns.”

The wealth fund already has significant money invested in the UK, including in Imperial College, Rolls Royce, Shell and the London Array, Hywind and Dudgeon wind farms.