A contract between Transport for London (TfL) and the United Arab Emirates that excludes Israeli companies and banks from funding or buying London’s cable car scheme has been branded a “dangerous precedent” by Jewish community leaders.

The contract with state-owned Emirates Airline, revealed via a Freedom of Information request, showed that TfL had agreed to abide by UAE foreign policy when entering into contracts relating to the Thames Cable Car. This means a ban on contracts with any Israeli entity, because the UAE does not have diplomatic relations with the Jewish state.

Jewish Leadership Council (JLC) chief executive Jeremy Newmark said: “The only foreign policy that should apply in Britain is British foreign policy. Serious questions will now be asked about how TFL can adopt contractual clauses that appear to oblige them to adopt discriminatory boycotts.”

Zionist Federation chairman Paul Charney said he was “extremely disappointed” to hear that TFL had agreed to an “Israeli exclusion condition” relating to the Thames cable cars.

“This sets a dangerous precedent effectively allowing UAE money to dictate government policy through commercial contracts,” said Charney. “I call on TfL to urgently discuss this matter with foreign and trade ministers and reconsider this agreement before any lasting damage is done.”