Live updates: Follow the latest on Israel-Iran conflict
Europe’s cautious diplomacy is being tested by the Israel-Iran conflict as it seeks de-escalation with allies in the Middle East, while acknowledging the threats of Iran’s nuclear programme.
The past two days have seen a flurry of calls between European and Gulf leaders and diplomats, as the possibility of all-out war leaves countries with “difficult calculations" to make.
The rapidly escalating conflict is likely to be at the top of the agenda of the annual G7 summit that opens in Canada on Sunday, alongside US tariffs and the war in Ukraine.
Before flying out to Canada, British Prime Minister Keir Starmer spoke to the Crown Prince of Saudi Arabia, Mohammed bin Salman. The pair discussed the “gravely concerning situation” and agreed on the need to de-escalate," Downing Street said.
“The Prime Minister updated on his conversations with partners so far and reiterated that the UK is poised to work closely with its allies in the coming days to support a diplomatic resolution," the statement said.
This followed a call between Mr Starmer and Israeli premier Benjamin Netanyahu in the immediate aftermath of the strikes on Friday.
Yet Mr Starmer, alongside French and German leaders, has also spoken about the “great concerns” he has over Iran’s nuclear programme and the threat it poses to Israel.
“It’s obvious that for a long time we’ve had great concerns about the Iranian nuclear programme,” he told Bloomberg on Friday. “I do recognise Israel’s right to self defence, but I’m very concerned.”
French President Emmanuel Macron and Italian premier Giorgia Meloni also spoke with the Saudi Crown Prince before making their way to the summit.
“The two sides … affirmed the need to exert all possible efforts for de-escalation, restraint, and resolving all disputes through diplomatic means,” the Saudi Foreign Ministry said in a statement about the call with Mr Macron.
Mr Macron and Ms Meloni also held separate conversations with UAE President Sheikh Mohamed.
"They underscored the need for maximum restraint and for intensifying efforts to de-escalate tensions and resolve disputes through diplomatic means that preserve the region’s security and stability,” Wam reported on Saturday.
European countries are seeking to deter Iran from its pursuit of a nuclear weapon, without being dragged into war.
The UK and France were involved in the last exchanges between Iran and Israel, when their air forces shot down drones fired by Iran in April 2024, and to a more limited extent in October 2024, during a ballistic missile attack by Tehran.
“Everybody at the moment is trying to stay out of this,” said Sir John Jenkins, a former UK Ambassador to Saudi Arabia. “It’s an incredibly difficult calculation”.
Saudi Arabia normalised relations with Iran in 2023, after decades of hostility.
Both Saudi Arabia and the UAE condemned Israel’s strikes on Friday, but Iran’s nuclear ambitions and its ballistic missiles programme have long cast a shadow over the region.
Iran’s neighbouring countries take an alternative view of progress and are pursuing the long term visions of diversifying their economies and attracting foreign investment, Mr Jenkins said.
The diplomatic track pursued by Saudi Arabia had succeeded for a time in keeping US support for the Israeli campaign at bay.
“The Saudis played this cleverly by distancing themselves from the Israeli position,” he said.
US President Donald Trump’s recent visit to Saudi Arabia and the UAE, where the US agreed to set up major AI data processing centres, was an “indication of where (both countries) want to be in the future”.
“People aren't going to invest in what look like war zones," he said.
But the extent to which Iran’s neighbours and Europe can stay out of the war will depend on developments in the coming days.
"Everybody is going to try to minimise their own exposure to the impact of the current conflict. But whether they're going to be successful depends on how this now plays out," Mr Jenkins said.
Company profile
Date started: December 24, 2018
Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer
Based: Dubai Media City
Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)
Sector: ConsumerTech and FinTech
Cashflow: Almost $1 million a year
Funding: Series A funding of $2.5m with Series B plans for May 2020
UAE squad
Ali Kashief, Salem Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdelrahman, Mohammed Al Attas (Al Jazira), Mohmmed Al Shamsi, Hamdan Al Kamali, Mohammad Barghash, Khalil Al Hammadi (Al Wahda), Khalid Eisa, Mohammed Shakir, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Adel Al Hosani, Al Hassan Saleh, Majid Suroor (Sharjah), Waleed Abbas, Ismail Al Hammadi, Ahmed Khalil (Shabab Al Ahli Dubai) Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Mahrami (Baniyas)
Company Profile
Company name: OneOrder
Started: October 2021
Founders: Tamer Amer and Karim Maurice
Based: Cairo, Egypt
Industry: technology, logistics
Investors: A15 and self-funded
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
The%20specs
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Copa del Rey
Barcelona v Real Madrid
Semi-final, first leg
Wednesday (midnight UAE)
Tour de France
When: July 7-29
UAE Team Emirates:
Dan Martin, Alexander Kristoff, Darwin Atapuma, Marco Marcato, Kristijan Durasek, Oliviero Troia, Roberto Ferrari and Rory Sutherland
Fifa Club World Cup quarter-final
Kashima Antlers 3 (Nagaki 49’, Serginho 69’, Abe 84’)
Guadalajara 2 (Zaldivar 03’, Pulido 90')
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.”
'Gehraiyaan'
Director:Shakun Batra
Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa
Rating: 4/5
EXPATS
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Sweet%20Tooth
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Results:
5pm: Maiden (PA) Dh80,000 1,400m | Winner: Eghel De Pine, Pat Cosgrave (jockey), Eric Lemartinel (trainer)
5.30pm: Maiden (PA) Dh80,000 1,400m | Winner: AF Sheaar, Szczepan Mazur, Saeed Al Shamsi
6pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (PA) Group 3 Dh500,000 1,600m | Winner: RB Torch, Fabrice Veron, Eric Lemartinel
6.30pm: Sheikh Zayed bin Sultan Al Nahyan National Day Cup (TB) Listed Dh380,000 1,600m | Winner: Forjatt, Chris Hayes, Nicholas Bachalard
7pm: Wathba Stallions Cup for Private Owners Handicap (PA) Dh 70,000 1,400m | Winner: Hawafez, Connor Beasley, Ridha ben Attia
7.30pm: Handicap (PA) Dh 80,000 1,600m | Winner: Qader, Richard Mullen, Jean de Roaulle
THE DETAILS
Kaala
Dir: Pa. Ranjith
Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar
Rating: 1.5/5
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Company Profile
Name: JustClean
Based: Kuwait with offices in other GCC countries
Launch year: 2016
Number of employees: 130
Sector: online laundry service
Funding: $12.9m from Kuwait-based Faith Capital Holding
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This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.