UK Foreign Secretary David Lammy is to meet the EU's foreign ministers to discuss security. PA Wire
UK Foreign Secretary David Lammy is to meet the EU's foreign ministers to discuss security. PA Wire
UK Foreign Secretary David Lammy is to meet the EU's foreign ministers to discuss security. PA Wire
UK Foreign Secretary David Lammy is to meet the EU's foreign ministers to discuss security. PA Wire

David Lammy to meet EU foreign ministers to discuss Middle East crisis and Iran threat


Tariq Tahir
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UK Foreign Secretary David Lammy is to meet the EU's foreign ministers to discuss the security challenges facing Europe, including the Middle East and Iran.

Mr Lammy has been invited to take seat at the table of the Foreign Affairs Council, with all 27 EU foreign ministers, when it meets in Luxembourg on Monday. The Foreign, Commonwealth and Development Office says the UK’s attendance at the meeting will be part of more regular engagement.

The meeting will discuss how the UK and the EU can work together to deal with the escalating crisis in the Middle East, including the continuing threat posed by Iran, the UK office added. The discussions will also include meeting the challenge of Russian aggression and interference across the continent.

Mr Lammy has been invited by EU foreign affairs minister Josep Borrell and said before the meeting that “UK security is indivisible from European security”.

“This government is determined to reset our relationships and deepen ties with our European partners in order to make us all safer,” Mr Lammy added. “This visit is an opportunity for the UK to be back at the table, discussing the most pressing global issues with our closest neighbours and tackle the seismic challenges we all face.”

Plans for closer working between the EU and the UK international and security matters will to be set out after discussions with Mr Borrell, the ministry said.

Mr Lammy last week visited Bahrain and Jordan, where he pushed calls for de-escalation in the Gaza war, with the conflict also spreading to Lebanon. His trip to meet EU ministers comes amid growing frustration at the Labour government’s foreign policy in the Middle East, which critics in the UK say is a middle ground that satisfies no one.

Some fear the government has been cornered into making decisions driven by legal technicalities rather than political views.

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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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What sanctions would be reimposed?

Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:

  • An arms embargo
  • A ban on uranium enrichment and reprocessing
  • A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
  • A targeted global asset freeze and travel ban on Iranian individuals and entities
  • Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
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Updated: October 14, 2024, 10:57 AM