Less than a day before UK Prime Minister Boris Johnson hosted the Global Investment Summit, he posed for pictures in front of a gleaming hydrogen-powered JCB digger opposite Westminster Abbey.
While the digger was important as it reflected Britain’s green ambitions to achieve net zero carbon emissions by 2050 and will be on display at the Cop26 climate change conference in Glasgow, Scotland, the person standing next to Mr Johnson, Lord Anthony Bamford, was even more important.
The manufacturing tycoon, who is worth about £4.6 billion, is not only the owner of the construction equipment company but also a Conservative Party donor, who has given about £14 million ($19.28m) in cash and gifts to the Tories since 2001.
The photocall gave Mr Johnson a chance to show off innovative Britain at a time when the world’s eyes were firmly on the UK ahead of the GIS and Cop26.
It also gave JCB the perfect platform to unveil its £100m investment in zero-emission hydrogen engines to power its machinery.
The prototype hydrogen-powered digger, which had been transported 150 miles (241km) from its testing ground in Staffordshire, central England, provided the ideal prop to push the case for the renewable energy source.
“Our sort of machinery will need to be powered by something other than fossil fuels,” Mr Bamford, whose father, Joseph Bamford, founded the company in 1945, said at the event where he lauded hydrogen as the best solution for powering larger machines.
JCB already has 100 engineers working on the hydrogen engines as it strives to deliver the first machines to customers by the end of next year.
“We make machines that are powered by diesel, so we have to find a solution and we are doing something about it now,” Mr Bamford said.
The photocall was not only an indication of Britain’s backing for hydrogen, it was also another demonstration of the cosy relationship between Mr Johnson, 57, and Mr Bamford, 75.
This was highlighted again a day later at the GIS itself, when Mr Johnson gave his benefactor’s project a plug during his official speech.
“I think hydrogen is part of the solution,” Mr Johnson told the 200 business leaders, and A-list investors, including Microsoft co-founder and philanthropist Bill Gates, at the event.
“Because I saw a JCB digger recently that ran on hydrogen and to drive a digger or a [lorry] or to hurl a massive passenger plane down a runway you need what [British motoring journalist and broadcaster] Jeremy Clarkson used to call grunt. And hydrogen provides that grunt. We are making big bets on hydrogen, on solar and hydro, and yes, of course, on nuclear as well.”
The blatant JCB promotion did not go unnoticed. Mr Bamford’s generosity towards the Conservative Party is well documented and includes dozens of helicopter and private jet flights, which critics argue deliver huge amounts of carbon into the atmosphere.
Mr Johnson himself has taken advantage of Mr Bamford’s generosity for his own campaigning, including a trip to the north-east of England in a Gulfstream 650 business jet from Farnborough Airport in Hampshire, south-east England, in the run-up to the May local elections.
The same month, the prime minister took a trip in a Bamford-registered helicopter for a 50-minute flight from London to Wolverhampton, central England, for a separate campaign trip.
Brexit-supporter Mr Bamford also boosted Mr Johnson’s campaign to exit the EU, letting him get behind the wheel of a JCB digger with “Get Brexit Done” written on the bucket.
Even before Mr Johnson became leader of the Conservatives, he was paid £10,000 by JCB in January 2019, a few days before he delivered a Brexit-themed speech that included praise for the company’s innovative stance.
Criticism over the tight relationship between the Bamford family and Mr Johnson has also been lobbed at Mr Bamford’s son Jo, the founder and chairman of Ryze Hydrogen, a company that invests in plants that make fuel cells to power buses.
Like his brother George, a luxury watchmaker, and sister Alice, a horse breeder, Jo remains on the board of JCB, which employs 10,000 people. He worked for the family business for 14 years before striking out on his own a few years ago.
He owns Ryze, a hydrogen producer that wants to build a network of plants. In 2019, he rescued failed company Wrightbus, a Northern Ireland bus maker that delivered the world’s first double-decker hydrogen bus in Aberdeen, Scotland, last year.
A green hydrogen double-decker developed by Wrightbus also featured at the photocall event last week attended by Mr Johnson ahead of the GIS.
Like his father, Jo Bamford – who describes himself as a “green entrepreneur” – is a big backer of hydrogen as a future source of energy because it does not produce carbon dioxide when burnt.
At a recent seminar hosted by the Centre for Policy Studies think tank, he insisted that batteries were not the only solution for decarbonising the transport sector, with hydrogen described as the best option.
Hydrogen is something we should really be looking at because we have lots of wind and lots of water.
Jo Bamford
“Hydrogen is something we should really be looking at because we have lots of wind and lots of water,” he told delegates attending the online session.
Jo Bamford certainly has a vested interest in pushing the energy source.
His delivery of the double-decker hydrogen bus was part of an £8.3m project between his company and Aberdeen to run one of the largest fleets of hydrogen buses.
Earlier this year, he lobbied for £500m in taxpayers’ cash to finance a 3,000-strong fleet of hydrogen buses produced by companies such as his.
In March, UK Business Secretary Kwasi Kwarteng said Wrightbus had been awarded an £11.2m grant to develop new hydrogen technology.
Last month, Jo Bamford also unveiled a £1bn investment fund called HyCap to finance hydrogen projects with private equity firm Vedra Partners, which invests the money of wealthy families.
Jo Bamford has donated more than £70,000 to the Conservative Party since 2019, something the Unlock Democracy campaign group is keen to clamp down on.
Tom Brake, director of the group has called for cap of £5,000 a year on donations to prevent “cash for access” concerns.
“Questions will be asked” if donors continue to be allowed to make sizeable donations and they will always be about “whether grants or contracts were won fair and square or whether cash for access and influence came into play”, Mr Brake said.
While the Bamfords have not done anything wrong, Jo, like his father, has a track record of working closely with top Tories.
A year ago, George Freeman, the new energy minister, was rapped for entering into a contract to offer “strategic advice” to Ryze Hydrogen.
The contract was later scrapped and money returned after Mr Freeman was reported for breaching the ministerial code because he failed to inform a Parliamentary watchdog.
Meanwhile, Julian Smith, the former chief whip, is a paid adviser for Ryze, earning a reported £60,000.
Even Anthony Bamford’s wife and Jo Bamford's mother, Lady Carole Bamford, hit the headlines over links between her Daylesford Organic farming and lifestyle business with Mr Johnson and his wife Carrie.
The Johnsons received £27,000 worth of organic takeaways from the company during lockdown, which was reportedly supplied at “cost price”, reducing the bill to £18,900.
The deliveries, which included breakfast, lunch and dinner, were paid for by Mr Johnson, according to 10 Downing Street.
Ms Bamford has three cafes in fashionable parts of London and one near their 1,500-acre estate near Chipping Norton in the Cotswolds, 48 kilometres from Mr Johnson's country home in Thame, Oxfordshire.
Daylesford, founded more than 40 years ago by Ms Bamford to sell organic produce from their land has been called the most sustainable – and poshest – farm shop in the UK. It has been praised for its eco-farming – yet another green tick for the family.
The Bamfords' passion for all things green, particularly hydrogen, is certainly justified as the UK hunts for the best replacement for fossil fuels across a wider range of industries, from steelmaking to domestic heating and fuelling air travel.
While JCB so far has not been particularly green in the past, the hydrogen push could certainly be profitable for the company.
JCB survived the pandemic despite the heavy hit from Covid-19, with sales falling to £3.1 billion in 2020, down from £4.2 billion in 2019. The number of machine sales fell from 92,216 to 74,590.
The company was forced to place 6,500 staff on furlough at the start of the crisis after demand collapsed.
However, last month JCB chief executive Graeme Macdonald said the company had enjoyed a quick turnaround this year.
“We are sitting here now in September with four times the usual order bank we had in normal times two to three years ago. As a result, we are ramping up production to levels we have not had before. I have never seen anything like it,” said Mr Macdonald.
Critics say hydrogen is inefficient and fear green hydrogen – which is clean to produce and burn – might lose out to hydrogen made from natural gas – which is clean to burn but emits carbon when produced.
Nonetheless, the Bamfords are throwing their weight behind the fuel source.
The Bamford family are already extremely wealthy – a world away from JCB founder Joseph Bamford who started the company in 1945, selling farm trailers from a lock-up shed.
Since Anthony Bamford took over the business in the 1970s the company has gone from strength to strength. Now, the new focus on hydrogen, by both him and his son Jo, could take the family wealth to new levels.
Fixtures
Wednesday
4.15pm: Japan v Spain (Group A)
5.30pm: UAE v Italy (Group A)
6.45pm: Russia v Mexico (Group B)
8pm: Iran v Egypt (Group B)
if you go
The flights
Fly direct to Kutaisi with Flydubai from Dh925 return, including taxes. The flight takes 3.5 hours. From there, Svaneti is a four-hour drive. The driving time from Tbilisi is eight hours.
The trip
The cost of the Svaneti trip is US$2,000 (Dh7,345) for 10 days, including food, guiding, accommodation and transfers from and to Tbilisi or Kutaisi. This summer the TCT is also offering a 5-day hike in Armenia for $1,200 (Dh4,407) per person. For further information, visit www.transcaucasiantrail.org/en/hike/
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Essentials
The flights
Whether you trek after mountain gorillas in Rwanda, Uganda or the Congo, the most convenient international airport is in Rwanda’s capital city, Kigali. There are direct flights from Dubai a couple of days a week with RwandAir. Otherwise, an indirect route is available via Nairobi with Kenya Airways. Flydubai flies to Kinshasa in the Democratic Republic of Congo, via Entebbe in Uganda. Expect to pay from US$350 (Dh1,286) return, including taxes.
The tours
Superb ape-watching tours that take in all three gorilla countries mentioned above are run by Natural World Safaris. In September, the company will be operating a unique Ugandan ape safari guided by well-known primatologist Ben Garrod.
In the Democratic Republic of Congo, local operator Kivu Travel can organise pretty much any kind of safari throughout the Virunga National Park and elsewhere in eastern Congo.
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.”
Company%20Profile
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Results
2pm: Maiden (TB) Dh60,000 (Dirt) 1,200m, Winner: Mouheeb, Tom Marquand (jockey), Nicholas Bachalard (trainer)
2.30pm: Handicap (TB) Dh68,000 (D) 1,200m, Winner: Honourable Justice, Royston Ffrench, Salem bin Ghadayer
3pm: Handicap (TB) Dh84,000 (D) 1,200m, Winner: Dahawi, Antonio Fresu, Musabah Al Muhairi
3.30pm: Conditions (TB) Dh100,000 (D) 1,200m, Winner: Dark Silver, Fernando Jara, Ahmad bin Harmash
4pm: Maiden (TB) Dh60,000 (D) 1,600m, Winner: Dark Of Night. Antonio Fresu, Al Muhairi.
4.30pm: Handicap (TB) Dh68,000 (D) 1,600m, Winner: Habah, Pat Dobbs, Doug Watson
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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Mohammed bin Zayed Majlis
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