British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP
British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP
British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP
British Foreign Minister David Lammy said 'this is not a blanket ban, this is not an arms embargo'. AFP

UK announces partial ban on arms exports to Israel


Thomas Harding
  • English
  • Arabic

Live updates: Follow the latest on Israel-Gaza

Britain has announced an arms embargo on 30 weapons export licences to Israel that UK authorities said might have been used to commit “serious violations” of international humanitarian law.

Foreign Secretary David Lammy told the House of Commons that the evidence meant Britain had no choice but to impose the ban.

Since Labour entered power in July there has been speculation that it might impose the ban. It came under pressure during the general election campaign over its support for Israel while civilians were being killed in large numbers in Gaza. The party also lost four seats to independent MPs who stood on a specific pro-Palestinian stance.

With Defence Secretary John Healey at his side, Mr Lammy said it was the government's “legal duty to review this export licence”.

While the government’s decision was not “a determination of guilt”, it had been forced into it after the vast scale of violence in Gaza, in which more than 40,700 Palestinians have been killed since October last year, health authorities in the enclave say.

“It is with regret that I inform the House today, the assessment I have received leaves me unable to conclude anything other than that for certain UK arms exports to Israel, there does exist a clear risk that they might be used to commit or facilitate a serious violations of international humanitarian law,” Mr Lammy said.

The government will publish in full precisely what has been banned, but they are 30 exports licences of 350 issued to UK defence companies under the arms control act.

An Israeli soldier launches a drone towards Gaza. Reuters
An Israeli soldier launches a drone towards Gaza. Reuters

It includes equipment that Britain assessed is being used in Gaza, “such as important components which go into military aircraft, including fighter aircraft, helicopters and drones”, and items that “facilitate ground targeting”.

Mr Lammy was keen to emphasise that it was not a full arms embargo that he said had been imposed by former Prime Minister Margaret Thatcher in 1982, following Israel’s invasion of Lebanon. He also raised other licence refusals imposed by Britain in 2009 and 2014.

“This is not a blanket ban, this is not an arms embargo,” he said, later adding that Israel had the right to defend itself against Hezbollah and Hamas, but it was “for items which were used in the current conflict in Gaza”.

He said exports of parts for the advanced F-35 fighters were not in the ban as that would undermine the global F-35 “flight supply chain that is vital to the security of the UK and our allies”.

“Let me leave this house in no doubt the UK continues to support Israel's right self-defence in accordance with international law,” he added.

Israeli Foreign Minister Israel Katz said on Monday that the decision was disappointing and that it "sends a very problematic message" to Hamas and its patrons in Iran.

Unlike the US, Britain's government does not give arms directly to Israel but rather issues licences for companies to sell weapons, with input from lawyers on whether they complied with international law.

Inside the Commons, there was largely broad support for the decision, with no condemnation from the Conservative Party and a few left-wing MPs such as Jeremy Corbyn, the former Labour leader, saying it did not go far enough.

Mike Martin, a former British army officer who served in Afghanistan and who is now a Liberal Democrats MP, welcomed the news that meant Britain had “doubts [over] Israel’s compliance to certain aspects of international law”.

Mr Lammy commissioned a thorough review into Israel’s compliance with that law on the day he entered office. He has also travelled twice to the country and the occupied West Bank to assess the situation first hand.

On Monday, he warned MPs that Israel's actions in Gaza “continue to lead to immense loss of civilian life, widespread destruction to civilian infrastructure”. But it was difficult to determine that precise cause of civilian deaths “because there is insufficient information, either from Israel or other reliable sources, to verify such claims”.

Mr Lammy also said Israel could do much more to ensure that food and medical supplies reached civilians in Gaza “in light of the appalling humanitarian situation”.

He decried the “credible claims of mistreatment of detainees” that the International Red Cross had been unable to investigate after being denied access detention facilities

Britain’s decision will also result in disagreement with Washington which has insisted that there is no basis in international humanitarian law to suspend arms exports.

Mr Lammy also announced new sanctions on four members of the Islamic Revolutionary Guards Corps from Iran who had been “supporting Iranian proxy actions in Iraq, Syria and Lebanon”.

F-35 programme

The ban represents about a tenth of arms exports from Britain to Israel which since 2008 has sold arms worth £576 million ($757.2 million) to the country.

The refusal to include the F-35 stealth fighters in the embargo, aircraft that are used extensively by Israel to bomb Gaza as well as Lebanon and Syria, was justified by Business Secretary Jonathan Reynolds.

He said the F-35 programme was “integral to international security” and that UK parts for the fighter “will be excluded from this decision, except where going directly to Israel”.

Any suspension of pooled parts for the aircraft was “not possible without having a significant effect on the global F35 fleet with serious implications for international peace and security”, Mr Reynolds said.

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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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Updated: September 03, 2024, 6:49 AM