Former Dutch prime minister Mark Rutte, left, will succeed Nato Secretary General Jens Stoltenberg. EPA
Former Dutch prime minister Mark Rutte, left, will succeed Nato Secretary General Jens Stoltenberg. EPA
Former Dutch prime minister Mark Rutte, left, will succeed Nato Secretary General Jens Stoltenberg. EPA
Former Dutch prime minister Mark Rutte, left, will succeed Nato Secretary General Jens Stoltenberg. EPA

Arab states to play important role in Nato summit in Washington


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World leaders are gathering for a crucial Nato summit this week in Washington, where the defence alliance will look to increase co-operation with Middle East partners to help counter Iran and its deepening military ties to Russia.

Dozens of non-member partners including the UAE, Saudi Arabia, Bahrain, Jordan and Israel have been invited to join the talks as Nato marks its 75th anniversary in a fast-changing world whose power balances have shifted since its creation in 1949.

Russia's war in Ukraine will probably be front and centre of discussions, and Nato is working to engage countries across a much broader region as it highlights the bonds between Moscow and Tehran.

Jonathan Panikoff, director of the Scowcroft Middle East Security Initiative at the Atlantic Council’s Middle East Programme, said Nato members would be highlighting “the Russia issue”.

I don't think the situation in Gaza will feature prominently in these talks, if Nato can avoid it. There's plenty of other issues... missile defence, the Iranian threat
Luke Coffey,
Hudson Institute

“That obviously involves Iran predominantly more than any other challenge in the Middle East and Iran's provisions of drones and other weapons to Russia,” he said.

The expert said Nato considers Middle East states, many of which maintain strong ties with Russia and China, to be vital in opposing the matter.

“It's an opportunity to try and demonstrate … greater unity and harmony in the face of efforts by China and Russia to push against the traditional liberal international order,” Mr Panikoff said.

A senior US official said that during the summit, the US and allies will make "significant" new announcements on increasing military funding for Ukraine, as part of a "bridge" to Nato membership.

"The United States will also announce new steps to strengthen Ukraine's air defenses and military capabilities, to help Ukraine continue to defend themselves today and to deter Russian aggression into the future," the US official told journalists on a call on Friday.

"Allies will reaffirm that Ukraine's future is in Nato."

Iran has been providing Russia with Shahed-type drones that have been pounding Ukrainian cities and front lines.

One ideal for Nato would be getting Arab countries and Israel, which has been hesitant to support Ukraine, to sign a joint statement with the alliance on the need to respect Ukrainian sovereignty and for Russia to withdraw.

“I'm sceptical you'd be able to get that far,” Mr Panikoff said.

Although representatives from Arab countries and Israel will attend the summit, which runs from Tuesday to Thursday, the war in Gaza might not be a key area of discussion, experts said.

“I don't think the situation in Gaza will feature prominently in these talks if Nato can avoid it,” said Luke Coffey, a senior fellow at the Hudson Institute.

“Nato wants to maintain its focus on the institutional relationship between the alliance and these Arab states that are attending this because, as an intergovernmental security alliance, Nato has to find consensus on these big issues.

"Frankly, there's plenty of other issues of concern that Nato and Gulf states can discuss [such as] missile defence, the Iranian threat.”

Imad Harb, director of research and analysis at the Arab Centre in Washington, said he thought Arab countries would push for Nato to pressure Israel into a ceasefire in Gaza.

“Whether they get anywhere is a different story, because the most powerful nation on Earth, the United States, has not yet really committed itself to forcing Israel to go for a ceasefire,” Mr Harb said.

Nato has long formed partnerships with Arab states and this year marks the 20th anniversary of the Istanbul Co-operation Initiative, which formalised Nato's engagement with the UAE, Bahrain, Qatar and Kuwait.

Arab countries have worked alongside Nato troops on several missions, with the UAE contributing to the International Security Assistance Force mission in Afghanistan.

Middle Eastern partners have also been involved with Nato counter-piracy operations off the Horn of Africa and in Libya in 2011.

Underscoring the importance of the region, Nato's Secretary General Jens Stoltenberg in December visited Saudi Arabia to outline his vision for deeper co-operation, marking the first visit to Riyadh by a sitting Nato leader.

He outlined several areas where Nato and Saudi Arabia could increase co-operation, including maritime security, protecting critical infrastructure and the fight against terrorism.

Mr Stoltenberg's term ends this year and he is being replaced by former Dutch prime minister Mark Rutte.

Another area of focus at this week's summit will be how US President Joe Biden comports himself on the world stage after his disastrous debate performance last week, which has increased the likelihood of the ardent Nato supporter being replaced by Donald Trump, who is sceptical of the alliance.

When asked at the debate whether he would pull the US out of Nato, Trump shrugged.

Jihan Abdalla contributed to this report from Washington.

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MATCH INFO

World Cup 2022 qualifier

UAE v Indonesia, Thursday, 8pm

Venue: Al Maktoum Stadium, Dubai

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Barcelona: Coutinho (6'), Messi (37', 81', 84')

Company name: Farmin

Date started: March 2019

Founder: Dr Ali Al Hammadi 

Based: Abu Dhabi

Sector: AgriTech

Initial investment: None to date

Partners/Incubators: UAE Space Agency/Krypto Labs 

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Qualifying: Saturday, 10-11am
Race: Sunday, 9am-midday 

Race venue: Suzuka International Racing Course
Circuit Length: 5.807km
Number of Laps: 53
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2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

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Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

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Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

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The High Court of England and Wales approves the company’s restructuring plan

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The Court of Appeal issues a judgment challenging parts of the restructuring plan

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Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

THE SPECS

Engine: AMG-enhanced 3.0L inline-6 turbo with EQ Boost and electric auxiliary compressor

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

Updated: July 08, 2024, 3:06 AM