Israeli defence technology company Elbit Systems' exhibits at an arms fair. AFP
Israeli defence technology company Elbit Systems' exhibits at an arms fair. AFP
Israeli defence technology company Elbit Systems' exhibits at an arms fair. AFP
Israeli defence technology company Elbit Systems' exhibits at an arms fair. AFP

London arms fair faces huge demonstrations due to Israeli presence


Tariq Tahir
  • English
  • Arabic

Protests are expected at an arms fair in London where three major Israeli arms manufacturers are due to attend.

The planned demonstrations come after the arrests of about 900 supporters of Palestine Action on Saturday, a group proscribed by the British government after attacks on defence sites in the UK.

Elbit Systems, Rafael and Israel Aerospace Industries are among 51 Israeli companies who will be attending the Defence and Security Equipment International event, which runs from Tuesday to Friday.

It is clear our government will not do anything that disrupts the profits of arms dealers
Emily Apple,
Campaign Against the Arms Trade

No official Israeli government delegation was invited to this year's event as a result of the war in Gaza, the UK said last month. But among those present will be Lockheed Martin, the US manufacturers of the F-35 fighter jet used by the Israeli military to attack Gaza.

The Campaign Against the Arms Trade (Caat) and the Palestine Solidarity Campaign groups have said they will stage protests at the Excel London conference centre in the docklands area of East London. They say up to 1,000 demonstrators are expected.

Caat’s media co-ordinator, Emily Apple, accused the UK government of “peak complicity in genocide” by allowing Israeli companies to attend the fair who “should be investigated for crimes against humanity, not invited to profit from the unspeakable devastation they have caused in Gaza”.

“These are the arms companies arming the Israeli military. It is clear that our government will not do anything that disrupts the profits of arms dealers.

"It is therefore down to campaigners across the country coming together to take action to uphold international law on the streets of east London,” Ms Apple said.

Palestine Action has targeted Elbit Systems sites in the UK and one of those, in Bristol, south-west England, appears to have closed unexpectedly. The activist group was banned in July after its members caused £7 million ($9.4 million) of damage to two military planes.

A Palestine Action supporter is arrested at a demonstration in London. Getty Images
A Palestine Action supporter is arrested at a demonstration in London. Getty Images

On Saturday, hundreds of demonstrators gathered in Parliament Square, central London, to express support for Palestine Action, calling for the terrorism ban to be overturned.

The Met Police said 890 arrests were made, most for supporting a proscribed group, which is an offence under Britain's Terrorism Act.

Others were detained over alleged assaults on police officers and other public order offences, said the force.

The law carries the threat of a six-month prison sentence for those found to have been showing support for Palestine Action. More than 500 people were arrested at a similar demonstration in August.

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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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Fuel consumption: 10.2 l/100km

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Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
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