The Turkish-backed Syrian National Army on patrol in the north-eastern Manbij region, in Aleppo province. Britain is hoping to bring a peace deal to the force and opposition Kurdish SDF troops. AFP
The Turkish-backed Syrian National Army on patrol in the north-eastern Manbij region, in Aleppo province. Britain is hoping to bring a peace deal to the force and opposition Kurdish SDF troops. AFP
The Turkish-backed Syrian National Army on patrol in the north-eastern Manbij region, in Aleppo province. Britain is hoping to bring a peace deal to the force and opposition Kurdish SDF troops. AFP
The Turkish-backed Syrian National Army on patrol in the north-eastern Manbij region, in Aleppo province. Britain is hoping to bring a peace deal to the force and opposition Kurdish SDF troops. AFP

UK foreign secretary heads to Riyadh to push for Syria peace deal


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Britain’s Foreign Secretary is to make a diplomatic push in the Middle East as London seeks the views of Arab states on the international efforts to help bring peace to Syria after the collapse of the Assad regime.

David Lammy will arrive in Riyadh on Sunday, joining a contact group of Arab nations where the issue of stopping the fighting in Syria between Turkish-backed forces and Kurds in the north-east will be one of the central discussions, The National understands.

Britain will also be looking to co-ordinate with the Saudis and others on the approach to a peace deal in Gaza, as the prospect looms of a delay until after US president-elect Donald Trump’s inauguration on January 20.

The Riyadh meeting will take the same format as the “Aqaba Summit” on Syria last month in Amman, which was joined by Saudi Arabia, the UAE and several other Arab states.

The Aqaba format was for interested parties “to keep the drum beat up” for peace, a western official heading to Riyadh told The National.

After a meeting in Rome with foreign ministers from the US, Germany, France, Italy and the EU on Thursday, Mr Lammy posted on X that the participants “discussed the need for an inclusive, Syrian-led political transition to create a stable, prosperous and safe country for all Syrians”.

Foreign ministers and senior officials from Europe and the US meeting to discuss the Syria situation, in Rome. EPA
Foreign ministers and senior officials from Europe and the US meeting to discuss the Syria situation, in Rome. EPA

He added that “this is what Syrians deserve and what the UK will support them to achieve”. Western officials indicated that Britain and others would not immediately lift sanctions on Syria until it is clear the de facto government led by Hayat Tahrir Al Sham (HTS) will not mistreat the country’s religious minorities.

It is understood if a period of stability is achieved by HTS, Mr Lammy will make an official visit to Damascus, meeting leaders of the organisation that was formerly linked to Al Qaeda. His overnight host, Italian Foreign Minister Antonio Tajani, met Syria's new ruler Ahmed Al Shara in Damascus on Friday and French Foreign Minister Jean-Noel Barrot held a "long chat" with the Syrian leader earlier this month.

Western officials say there is “no rush” on lifting sanctions, as they are “playing the longer game”, having learnt the lessons of lifting them too quickly in the past, particularly in Libya in 2011.

HTS had to prove it was “inclusive” and that there would be no “suppression, persecution or mistreatment of minorities”, the official added. “Those are the basics that we would expect to see.”

Shayan Talabany of the Tony Blair Institute for Global Change think tank said: “It's important to reassess ways that sanctions can be lifted or maintained while still delivering benefits to the general population. You don't just lift sanctions overnight and expect things to progress.”

With fighting still raging in the north-east between the Syrian National Army (SNA), backed by Turkey, and the US-supported largely Kurdish Syrian Defence Forces (SDF), analysts believe that bringing in a rapid peace deal will be important.

The UK could press for all parties to agree to an “inclusive” short-term agreement before a formal Syrian constitution is drafted, said Ms Talabany.

“If we start off on that good note, things could continue in a positive trajectory, but if we start off on the wrong footing, then it's going to make it much more complicated,” she said.

“This is a real chance for Turkey to do something that would both benefit Turkey hugely and also the rest of the region, with an amazing opportunity for them to win friends, that would give Turkey a massive upper hand in the Middle East.”

Britain’s key interest was to stabilise Syria following concerns that the SNA and SDF fighting could foment unrest and rejuvenate ISIS extremists.

“Given the number of groups active in Syria that have the capacity to re-engage in armed conflict, keeping it stable is the primary interest now,” said Megan Sutcliffe, lead Middle East analyst at the Sibylline geopolitical intelligence company. The clashes could generate conditions that might push more refugees into Turkey and through Europe, rather than getting them to return.

“The conflict of interest between Turkey and the SDF is not necessarily irreconcilable,” she added. “But Turkey's concern is that the SDF is actually just a cover for Kurdish secessionists, something the Kurds deny.”

She added that Mr Lammy would likely be prioritising dialogue to “avoid an additional Turkish military operation within Syria”.

“Mr Lammy will be attempting to achieve as part of this visit in broader co-ordination with Saudi Arabia, without necessarily having to directly engage with Syrian authorities,” she added.

The potential ceasefire agreement between Israel and Hamas in Gaza will also feature in the Riyadh discussions, with expectations now slipping to a deal not being done until after Mr Trump’s inauguration.

“It's more likely that we're going to see a peace deal in the immediate aftermath of the inauguration in Gaza than we are in Ukraine,” a diplomatic source told The National. “It will be a moment that Trump can say, ‘well, I got peace in the Middle East’.”

Ms Talabany agreed that January 20, inauguration day, would be a “very significant deadline for the whole region”.

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.”

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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.

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6. Further transfer pricing enforcement

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7. Limited time periods for audits

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8. Pillar 2 implementation 

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10. Substance and CbC reporting focus

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Updated: January 12, 2025, 10:16 AM