Former UK chancellor Nadhim Zahawi has announced he will not be seeking re-election. Getty Images
Former UK chancellor Nadhim Zahawi has announced he will not be seeking re-election. Getty Images
Former UK chancellor Nadhim Zahawi has announced he will not be seeking re-election. Getty Images
Former UK chancellor Nadhim Zahawi has announced he will not be seeking re-election. Getty Images

Nadhim Zahawi joins more than 70 Tory MP departures


Gillian Duncan
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Nadhim Zahawi, the former chancellor and education secretary, has become the latest Conservative MP to announce he is stepping down at the next general election.

Announcing his decision on X on Thursday, the MP for Stratford-on-Avon said: “Every morning as I shave my head in the mirror, I have to pinch myself. How is it that boy from Baghdad who came to these shores, fleeing persecution and unable to speak a word of English, was able to do as much as I have?”

Mr Zahawi, whose parents fled Baghdad in 1978 when Saddam Hussein rose to power, added: “For all our challenges, this is the best country on Earth, and it helped me make the British dream come true.”

Mr Zahawi, who oversaw the Covid-19 vaccine campaign and was one of the founders of the YouGov polling agency, added: “It was where I built a Great British business, YouGov, and it was where I raised my wonderful family.

“And it was the nation to which I was proud to return such a favour when I led the world-leading coronavirus vaccination rollout.”

Mr Zahawi was education secretary from September 2021 to July 2022 and had a short stint as chancellor of the exchequer between July and September 2022.

Last year, Rishi Sunak sacked Mr Zahawi as Tory party chairman after an ethics inquiry found he had broken the Ministerial Code several times over his tax affairs.

One of parliament's richest MPs, Mr Zahawi is estimated to have a £100 million property portfolio and has founded several business enterprises, including a horse-riding school with his wife.

In 2013, amid the expenses scandal, he was found to have wrongly claimed for electricity at his stables. He said he was “mortified” over his “genuine mistake” and repaid part of the almost £6,000 energy bill.

Stepping down

Mr Zahawi is among 71 MPs who were elected as Conservatives in 2019 to announce they are not seeking re-election – the most from the party to leave Parliament since 1997.

They include Armed Forces Minister James Heappey, former prime minister Theresa May and former Conservative Party chairman Brandon Lewis.

Former ministers Harriet Harman, Margaret Hodge and current deputy speaker Rosie Winterton are among the Labour MPs to announce they are stepping down.

Two Conservatives who recently defected to the Labour Party, Dan Poulter and Natalie Elphicke, also confirmed they would stand down at the election.

Those from other parties include Ian Blackford, former leader of the Scottish National Party in Westminster.

A total of 104 MPs are stepping down, surpassing the average of 85 who stood down at elections between 1979 and 2019.

The largest number recorded in recent history was in 2010, when 149 MPs stepped down, 100 of whom were Labour party members.

A UK election must be held by January 2025 but can take place earlier.

Prime Minister Rishi Sunak has said it is his “working assumption” that the election will be held in the second half of this year.

Early years

Born in Iraq in 1967, in the year the Baath political party retook power, Mr Zahawi came from a relatively prominent Kurdish family whose influence – and later safety – was threatened by the rise of Saddam Hussein in the 1970s.

Mr Zahawi’s grandfather had been the governor of the Central Bank of Iraq, his signature appearing on the country's banknotes, but the Zahawis’ sway eventually drew the ire of the ruling elite.

When Mr Zahawi's father, a businessman, was tipped off that the secret police loyal to Saddam Hussein, then the deputy leader of Iraq, were coming for him, he fled.

Telling his colleagues he was going on a trip to the north of the country, he instead packed his bags for Baghdad Airport.

Mr Zahawi has previously reflected on the “traumatic” moment when he watched the plane in which his father was travelling prepare to take off, only for a military vehicle to approach the aircraft.

Nadhim Zahawi – in pictures

  • Conservative MP Nadhim Zahawi arrives at Downing Street. Getty
    Conservative MP Nadhim Zahawi arrives at Downing Street. Getty
  • Mr Zahawi at the Conservative Way Forward Relaunch at the Churchill War Rooms in central London, July 2022. PA
    Mr Zahawi at the Conservative Way Forward Relaunch at the Churchill War Rooms in central London, July 2022. PA
  • Mr Zahawi, then chancellor of the exchequer, at a meeting with Andrew Bailey, governor of the Bank of England. Photo: HM Treasury
    Mr Zahawi, then chancellor of the exchequer, at a meeting with Andrew Bailey, governor of the Bank of England. Photo: HM Treasury
  • Mr Zahawi says he is proud of his rise from a boy who fled his homeland of Iraq to become a leading contender for prime minister in the UK Conservative leadership race. Getty Images
    Mr Zahawi says he is proud of his rise from a boy who fled his homeland of Iraq to become a leading contender for prime minister in the UK Conservative leadership race. Getty Images
  • He answers questions from 5 pupils after reading a commemorative jubilee book during a visit to Manor Park Primary School in Sutton, when he was education secretary, in May 2022. PA
    He answers questions from 5 pupils after reading a commemorative jubilee book during a visit to Manor Park Primary School in Sutton, when he was education secretary, in May 2022. PA
  • Mr Zahawi speaks at the Cop26 summit in Glasgow, in November 2021. Getty Images
    Mr Zahawi speaks at the Cop26 summit in Glasgow, in November 2021. Getty Images
  • As Covid-19 vaccines minister, Mr Zahawi holds a media briefing on the coronavirus at Downing Street in June 2021. Getty Images
    As Covid-19 vaccines minister, Mr Zahawi holds a media briefing on the coronavirus at Downing Street in June 2021. Getty Images
  • Conservative London mayor candidate Shaun Bailey is joined by Mr Zahawi as they speak to the media in May 2021. Getty Images
    Conservative London mayor candidate Shaun Bailey is joined by Mr Zahawi as they speak to the media in May 2021. Getty Images
  • Mr Zahawi visits the Cullimore independent community chemist in Edgware after it became the first pharmacy in London to offer the Covid-19 vaccination in January 2021. Getty Images
    Mr Zahawi visits the Cullimore independent community chemist in Edgware after it became the first pharmacy in London to offer the Covid-19 vaccination in January 2021. Getty Images
  • Mr Zahawi, then undersecretary of state for business and industry, with Carrie Johnson at the 2019 Conservative Party conference in Manchester. Getty Images
    Mr Zahawi, then undersecretary of state for business and industry, with Carrie Johnson at the 2019 Conservative Party conference in Manchester. Getty Images
  • The then-prime minister David Cameron deep in discussion with Mr Zahawi at another Conservative Party conference in Birmingham, 2010. Getty Images
    The then-prime minister David Cameron deep in discussion with Mr Zahawi at another Conservative Party conference in Birmingham, 2010. Getty Images

He said his mother was in tears and the family were terrified that the army was going to escort his father off the plane. Iraqi authorities instead took the man sitting behind his father and by the time the secret police had raided their home, Mr Zahawi’s father had departed.

The harrowing experience is one the former chancellor says is “stamped on his memory”.

From Baghdad to Sussex

Once settled, Mr Zahawi’s father sent for his wife and children and in 1978, 11-year-old Nadhim arrived without speaking a word of English.

The family lived in Sussex and Mr Zahawi was privately educated at King's College School in west London and later graduated from University College London, where he studied chemical engineering.

He has described his difficulty adapting to life in Britain, especially his struggles with the English language and bullies at school, but the young Nadhim kept himself occupied with football, studying maths and science, and horse riding.

As he was about to start university, however, the family’s fortunes turned dramatically when a business venture fell through and his father “lost everything” except for his brown Vauxhall car.

With the family’s one remaining asset, the school-leaver was about to take a job as a taxi driver when his mother insisted he continue his education and pawned her gold jewellery to pay for it.

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.”

Fixtures

Friday Leganes v Alaves, 10.15pm; Valencia v Las Palmas, 12.15am

Saturday Celta Vigo v Real Sociedad, 8.15pm; Girona v Atletico Madrid, 10.15pm; Sevilla v Espanyol, 12.15am

Sunday Athletic Bilbao v Getafe, 8.15am; Barcelona v Real Betis, 10.15pm; Deportivo v Real Madrid, 12.15am

Monday Levante v Villarreal, 10.15pm; Malaga v Eibar, midnight

Charlotte Gainsbourg

Rest

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Updated: May 09, 2024, 11:45 AM