President Sheikh Mohamed with US Secretary of State Marco Rubio at Idex in Abu Dhabi. Photo: UAE Presidential Court
President Sheikh Mohamed with US Secretary of State Marco Rubio at Idex in Abu Dhabi. Photo: UAE Presidential Court
President Sheikh Mohamed with US Secretary of State Marco Rubio at Idex in Abu Dhabi. Photo: UAE Presidential Court
President Sheikh Mohamed with US Secretary of State Marco Rubio at Idex in Abu Dhabi. Photo: UAE Presidential Court

UAE President rejects displacement of Palestinians in talks with Rubio


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President Sheikh Mohamed on Wednesday told US Secretary of State Marco Rubio during talks in Abu Dhabi that the UAE strongly opposes any attempt to displace the Palestinian people from Gaza.

The UAE leader said that rebuilding efforts in Gaza should be underpinned by a “comprehensive and lasting peace” based on a two-state solution.

This was reinforced by Dr Anwar Gargash, diplomatic adviser to the President, who wrote on X that the UAE’s message “is with fair rights, alleviating human suffering, and supporting the path of peace, stability, and prosperity”.

Sheikh Mohamed and Mr Rubio also reviewed ways to strengthen long-standing ties between the countries in the discussions.

Mr Rubio arrived in the UAE for the latest stop on a Middle East tour in which efforts to end wars in Gaza and Ukraine have been top of the agenda.

According to a readout of the meeting provided by the US State Department, Mr Rubio conveyed his appreciation for the strong ties with the UAE.

“The Secretary discussed the UAE’s significant strides in both leading edge technology, artificial intelligence (AI), and quantum computing. He expressed his wish for the two nations to build on their already strong economic bonds,” State Department spokeswoman Tammy Bruce said, noting that the conversation also “encompassed the remaining challenges in Gaza”.

Mr Rubio, the former Florida senator who was appointed to President Donald Trump's administration last month, will be a key figure in guiding US foreign policy, particularly in supporting a global effort to bring about peace in Europe and the Middle East.

He met Sheikh Mohamed at the International Defence Exhibition and Conference (Idex), at Abu Dhabi National Exhibition Centre, and also held talks with Sheikh Abdullah bin Zayed, Deputy Prime Minister and Minister of Foreign Affairs. Sheikh Mohamed also met Guido Crosetto, Italian Minister of Defence, at the conference.

Mr Rubio had been welcomed in Abu Dhabi by Reem Al Hashimy, Minister of State for International Co-operation, and Martina Strong, US ambassador to the UAE.

His visit to the Emirates comes a week after he spoke to Sheikh Mohamed by phone to discuss the Israel-Gaza war.

The UAE leader underlined the need to maintain security and stability in the region, based on a two-state solution.

They also discussed ways to strengthen co-operation across various fields as part of the strategic relationship between the nations.

Mr Rubio also took a tour of the Abrahamic Family House in Abu Dhabi alongside Mohamed Khalifa Al Mubarak, chairman of the Department of Culture and Tourism – Abu Dhabi, reported the US Mission to the UAE on social media platform X on Friday.

Mr Rubio has already visited Israel and Saudi Arabia in recent days and was also due to travel to Doha as part of the tour, the US State Department has said.

On Monday, Saudi Crown Prince Mohammed bin Salman told Mr Rubio that Riyadh was looking forward to working with Mr Trump's administration, and the two sides could work together towards positive outcomes for “many countries around the world”.

Prince Mohammed and Mr Rubio discussed regional developments during their meeting, before talks began on Tuesday in Riyadh between US and Russian officials.

“We're glad to work with you and with President Trump,” the Crown Prince told Mr Rubio. “His administration made a decision and we can work for positive things for Saudi Arabia and America, and also for many countries around the world.”

According to a statement on the meeting carried by Saudi state media, they discussed bilateral relations and ways to enhance and develop ties. There was no mention of Gaza in the Saudi statement.

Mr Rubio's trip comes after disputed proposals by Mr Trump to relocate Palestinians from the Gaza Strip and for America to “take ownership” of the enclave. Saudi Arabia responded swiftly at the time with a strongly worded condemnation and rejection of the proposal.

Video: Saudi Crown Prince Mohammed bin Salman receives US Secretary of State Marco Rubio

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

Updated: February 21, 2025, 1:30 PM