Britain's Prime Minister Boris Johnson joined the leaders of the UK's top business confederation on Monday to say that carbon net zero target offers the economy its best chance of revolutionary growth in the years ahead.
Mr Johnson said the green industrial revolution was the biggest opportunity to unite and level up the UK, with government and business working in partnership to tackle the "woeful imbalance in productivity across the country".
Tony Danker, the Confederation of British Industry director-general, echoed the view from Downing Street, saying the country has “a shot at redemption” from its past mistakes if it pushes ahead and regenerates nascent industries – such as biotech, space and cybersecurity – which are emerging in all parts of the country.
Mr Johnson's call to action came at the CBI's annual conference near Newcastle as he set out plans for a dramatic expansion of the UK’s electric-vehicle charging network by 2030, when the government will ban the sale of new petrol and diesel cars.
"If this country could achieve the same geographical balance and dispersion of growth and wealth that you find in most of our most successful economic comparisons ... then there would be absolutely no stopping us and ... we can become the biggest and most successful economy in Europe," Mr Johnson said.
Just weeks after the conclusion of the Cop26 environmental summit in Glasgow, Mr Johnson laid out plans to add up to 145,000 charging points a year to the country’s electric vehicle charging system until the end of the decade.
This is an addition to the 250,000 already installed in homes and workplaces.
While Britain has one of the Europe’s largest EV charging networks, new places to charge are growing more slowly than sales of electric cars.
A new law will make it mandatory for new homes and buildings in England to have electric charging points built in.
New-build supermarkets, buildings undergoing major renovations and workplaces will also be subject to the new law.
“This is a pivotal moment – we cannot go on as we are,” Mr Johnson said. The green industrial revolution, he said, meant "fate has handed us an opportunity" to reshape the economy.
"The tipping point has come. UK sales of EVs are now increasing at 70 per cent a year and, in 2030, we are ending the market for new hydrocarbon internal combustion engine vehicles ahead of other European countries," he said.
The new charging points will absorb some of the £620 million ($833.4 million) funding set aside for the transition to electric cars that the government earmarked last month in its strategy to reach net-zero emissions.
At the CBI event, the business lobby said Mr Johnson must deliver economic growth in every part of the UK to reverse the “benign neglect” of British regions, the head of the country’s biggest business lobby group said on Monday.
Reducing London’s dominance of the UK economy and delivering economic growth across the country will be the determining factor in the success or failure of the government’s levelling-up agenda.
Mr Danker said the CBI wholeheartedly backs the government's levelling-up agenda, in a speech to a business audience at the Port of Tyne, near Newcastle, part of the business group's attempt to level up its conference by hosting it at eight locations across the country.
“Ultimately, what the UK needs to level up, however, is economic growth in every place. Growth that in turn provides better paid jobs, skilled work, firm-level success and creates the kind of virtuous circle that helps a place to prosper.“
The deindustrialisation of the UK since the 1980s has led to a regional “brain drain” as young people left for better-paid jobs in London and the south of England, where multinationals thrived, Mr Danker said.
That ambivalence about the fate of northern towns and cities left a trail of shuttered high streets and a “loss of pride in place”, he said.
“In too many sectors, the UK now feels like a branch-line economy, with the most productive parts of a sector, such as headquarters, too often based in London and the South East, and the branch managers and the back office based everywhere else,” Mr Danker said.
“We want an economy of many hubs. That means using all parts of the country to their full potential.”
He pointed to overseas investors, such as Japanese car manufacturer Nissan, which first set up in the UK in the 1980s, and announced plans to build the UK’s first car battery gigafactory that will lead to a huge expansion of its Sunderland plant in north-east England in the summer.
The £1 billion battery plant, built in partnership with Chinese battery supplier Envision, will create 900 jobs at Nissan and 750 at Envision.
But Mr Danker acknowledged that the "readjustment crunch" was a challenge for businesses as they faced rising inflation, a supply chain crisis and the threat of a resurgence in Covid-19 case numbers.
He also said that the UK cannot have another "flatlining, low-growth decade", and that now was the time to seize the moment and make "big bets" for business to get the economy back on track over the next 10 years.
Mr Danker used his speech to announce the creation of the CBI Centre for Thriving Regions to act as a vehicle for the private sector to engage in "genuine economic placemaking", with the centre staffed from all four regions of the UK.
This applies even more to net-zero, he said, "which creates a once-in-a-generation opportunity for the UK’s industrial heartlands to lead in this new industrial revolution as they did the last".
"In hydrogen. Off-shore wind. Carbon Capture. Electric vehicles and batteries, and other net-zero solutions. A chance for these places to be world-leading again. If this isn’t levelling up, I don’t know what is,” he said.
On Monday, the government also unveiled almost £10m in funding for a first-of-a-kind new hydrogen project in the UK’s largest onshore windfarm near Glasgow.
A total of £9.4m will be invested in the Whitelee green hydrogen project to develop the UK’s largest electrolyser, a system that converts water into hydrogen gas as a way to store energy and supply local transport providers with zero-carbon fuel.
The project has the potential to store and produce the equivalent of enough green hydrogen to fuel more than 200 bus journeys between Glasgow and Edinburgh each day.
“We are investing in new projects to turn wind power into hydrogen and the 10-point plan investments have already triggered about £90bn of private sector investment, driving the creation of high-wage, high-skilled jobs as part of our mission to unite and level up across the country," Mr Johnson said.
During the CBI event, Mr Johnson referred to his early career as a journalist when he worked as motoring correspondent at GQ magazine and used to test drive supercars.
During his time in the role, he said he tested only two EVs, including a Tesla that died in the fast lane of the M40, but he conceded that they have got a lot better since then.
"The pace of change will now accelerate like a new Tesla," he said.
At one point during his speech, Mr Johnson was briefly lost for words when he appeared to lose his place in his notes.
Searching through his notes, Johnson sighed and said "forgive me" several times as he shuffled papers to find his place again.
Killing of Qassem Suleimani
The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E3.6-litre%2C%20V6%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3Eeight-speed%20auto%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E285hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E353Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EDh159%2C900%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3Enow%3C%2Fp%3E%0A
The President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
The five pillars of Islam
AIDA%20RETURNS
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarol%20Mansour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%20%3C%2Fstrong%3EAida%20Abboud%2C%20Carol%20Mansour%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203.5.%2F5%3C%2Fp%3E%0A
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Opening day UAE Premiership fixtures, Friday, September 22:
- Dubai Sports City Eagles v Dubai Exiles
- Dubai Hurricanes v Abu Dhabi Saracens
- Jebel Ali Dragons v Abu Dhabi Harlequins
AndhaDhun
Director: Sriram Raghavan
Producer: Matchbox Pictures, Viacom18
Cast: Ayushmann Khurrana, Tabu, Radhika Apte, Anil Dhawan
Rating: 3.5/5
The five pillars of Islam
SQUADS
Bangladesh (from): Shadman Islam, Mominul Haque, Soumya Sarkar, Shakib Al Hasan (capt), Mahmudullah Riyad, Mohammad Mithun, Mushfiqur Rahim, Liton Das, Taijul Islam, Mosaddek Hossain, Nayeem Hasan, Mehedi Hasan, Taskin Ahmed, Ebadat Hossain, Abu Jayed
Afghanistan (from): Rashid Khan (capt), Ihsanullah Janat, Javid Ahmadi, Ibrahim Zadran, Rahmat Shah, Hashmatullah Shahidi, Asghar Afghan, Ikram Alikhil, Mohammad Nabi, Qais Ahmad, Sayed Ahmad Shirzad, Yamin Ahmadzai, Zahir Khan Pakteen, Afsar Zazai, Shapoor Zadran
EA Sports FC 24
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
BUNDESLIGA FIXTURES
Friday (UAE kick-off times)
Borussia Dortmund v Paderborn (11.30pm)
Saturday
Bayer Leverkusen v SC Freiburg (6.30pm)
Werder Bremen v Schalke (6.30pm)
Union Berlin v Borussia Monchengladbach (6.30pm)
Eintracht Frankfurt v Wolfsburg (6.30pm)
Fortuna Dusseldof v Bayern Munich (6.30pm)
RB Leipzig v Cologne (9.30pm)
Sunday
Augsburg v Hertha Berlin (6.30pm)
Hoffenheim v Mainz (9pm)
UAE currency: the story behind the money in your pockets
Desert Warrior
Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley
Director: Rupert Wyatt
Rating: 3/5
More from Neighbourhood Watch
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
UAE Premiership
Results
Dubai Exiles 24-28 Jebel Ali Dragons
Abu Dhabi Harlequins 43-27 Dubai Hurricanes
Final
Abu Dhabi Harlequins v Jebel Ali Dragons, Friday, March 29, 5pm at The Sevens, Dubai