HTS fighters took control of Syria in a lightning offensive late last year. EPA
HTS fighters took control of Syria in a lightning offensive late last year. EPA
HTS fighters took control of Syria in a lightning offensive late last year. EPA
HTS fighters took control of Syria in a lightning offensive late last year. EPA

Britain 'forged relationship' with HTS in Syria before Assad's fall, spy chief says


Lizzie Porter
  • English
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Britain forged a backdoor relationship with Hayat Tahrir Al Sham before the group's rise to power in Syria, which facilitated the UK's diplomatic return to the country after the fall of the Assad regime, a spy chief revealed on Friday.

“Having forged a relationship with HTS a year or two before they toppled Bashar Al Assad, we forged a path for the UK government to return to the country within weeks,” outgoing MI6 chief Sir Richard Moore said in a speech at the British consulate in Istanbul.

Mr Moore did not provide details of the relationship with Hayat Tahrir Al Sham. The time frame he provided suggests it developed after the group formally severed its ties with Al Qaeda, but was still banned as a terrorist organisation by the UK government for its links to the group.

HTS was formally dissolved after its leader Ahmad Al Shara took power in Damascus, but its members retain key leadership positions in the new Syrian authorities. Britain has yet to remove the terrorist designation.

Britain's then-foreign secretary David Lammy confirmed soon after Mr Al Assad's fall that the UK had had previous contact with HTS. But the MI6 chief's comments on Friday expanded on how that relationship had allowed the UK to build ties with the new Syrian authorities.

“Syria is a good example of where people can get ahead of events, it really helps when they suddenly, unexpectedly, move to a faster pace," the outgoing chief of Britain's foreign intelligence service told reporters in Istanbul.

Mr Moore, who has led MI6 for five years, was previously British ambassador in Turkey.

The UK re-established diplomatic relations with the new Syrian government in July during a visit by Mr Lammy to Damascus. The visit was the first by a UK minister to Syria in 14 years, following a severing of ties with the former Assad regime over the brutal crackdown on popular uprisings in the country.

Jonathan Powell, a veteran back-channel negotiator who returned to the UK government as National Security Adviser last year, had earlier held a low-key meeting with the new Syrian authorities. There were claims he also met Mr Al Shara in 2021, although HTS denied that.

Richard Moore credited Britain's outreach to HTS with easing its diplomatic return to Syria. AP
Richard Moore credited Britain's outreach to HTS with easing its diplomatic return to Syria. AP

Groups including ISIS and Al Qaeda have been hit by a “collective effort to degrade their capabilities,” Mr Moore said. But he added that MI6 is working with its partners, including Turkey, to address their continuing attempts to resurface.

ISIS and Al Qaeda "are looking to regroup, to exploit conflict and ungoverned spaces to re-establish themselves, while using technology to spread their violent ideologies online,” he said.

Alongside counter-terrorism efforts against extremist groups, Russia, China and Iran are MI6’s priorities, Mr Moore said.

President Vladimir Putin of Russia has no desire to see the conflict in Ukraine end, he said. Support from China has been pivotal, he added, while ranking dual-use goods from the country as perhaps more important than Iranian military hardware and manpower from North Korea in enabling Russia to keep fighting.

“It is the support that China has consistently given to Russia, both diplomatically and also in terms of dual use goods – the Made in China chemicals that end up in their shells, the electronic components that end up in their missiles – that have prevented Putin from reaching the conclusion that peace is his best option,” he said.

He also called on Iran to abandon what he described as, “a strategy that destabilises their neighbourhood and puts them at odds with much of the rest of the world.” Intelligence had not detected a change in Tehran’s thinking following successive strikes on its regional networks by Israel, he added.

Hopes of a nuclear deal between the US and Iran were set back by direct Israeli attacks on Iran in June, which Iranian officials described as a deliberate attempt to scupper negotiations for an agreement.

In late August, France, Germany and the United Kingdom initiated a month-long process to reimpose UN sanctions on Iran, in the absence of a negotiated solution.

Iran’s Foreign Minister Abbas Araghchi said he had provided his European counterparts with a, “reasonable and actionable plan” that would “avert an unnecessary and avoidable crisis in the coming days.” But he accused them of responding with “a litany of excuses and outright deflection,” indicating a continuation of the diplomatic standoff.

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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