Now that Liz Truss has completed the formation of her government, one of the UK Prime Minister’s first priorities must be to improve relations with the country’s long-standing allies in the Gulf.
While Boris Johnson said he was sympathetic to the concerns of the Gulf states, the reality was that, during his three-year term as prime minister, London showed little interest in the region. Britain’s neglectful attitude was best summed up by the decision to end the long-standing practice of having a dedicated Foreign Office minister to look after the Middle East.
For decades, the British government had a minister of state at the Foreign Office with special responsibilities for maintaining good relations with key Arab states such as the UAE and Saudi Arabia. Often the holders of this office were politicians of high calibre, such as Alistair Burt, who played a key role in restoring relations with the region during David Cameron’s premiership.
The decision to abolish the post last February as part of an administrative reshuffle suggested that, as long as Mr Johnson was prime minister, his government had other priorities to consider.
His resignation has now provided his successor with an opportunity to revitalise relations.
Ms Truss has already demonstrated that she wants her administration to make a clean break with the Johnson era. Only a handful of those who served in Mr Johnson’s cabinet have been given positions in the new government. Nearly all the advisers and officials who worked at 10 Downing Street are being removed.
In a clear sign that Ms Truss wants her administration to adopt a more professional approach, her staff has been ordered to dress appropriately, with men required to wear jackets and ties.
An indication of Ms Truss' ruthless approach – as part of a determination to distance herself from the chaos that characterised the Johnson era, and resulted in his unceremonious exit – can be seen in her decision to dismiss Stephen Lovegrove, Britain’s widely respected national security adviser.
Previously responsible for running the Ministry of Defence, Mr Lovegrove has been a key figure in the radical modernisation programme involving the British Armed Forces. He is also credited with persuading Mr Johnson to provide military support to Ukraine, including the deadly NLAW anti-tank weapons that played a crucial role in thwarting Russian attempts to capture Kyiv at the start of the conflict.
Mr Lovegrove is to be replaced by Tim Barrow, a former British ambassador to Moscow who was involved in the Brexit negotiations and is understood to have formed a close partnership with Ms Truss during her stint as foreign secretary. His appointment is very much in keeping with Ms Truss’s desire to appoint trusted associates to key positions in her government.
It is a policy that has resulted in James Cleverly, who worked with her as a junior minister at the Foreign Office, becoming the country’s new Foreign Secretary. Mr Cleverly, 53, was a staunch supporter of Ms Truss’ leadership challenge in the governing Conservative party right from the beginning of a gruelling six-week campaign.
His appointment, moreover, suggests that Ms Truss is keen to rebuild relations with Britain’s Gulf allies, with Mr Cleverly well-known in the region from his period as Middle East minister from February 2020 until it was abolished last year. During this spell, he developed close ties with the leadership in each of the six GCC member states.
He also demonstrated that he wasn't afraid to make difficult decisions regarding regional security issues. He was heavily criticised after announcing significant reductions to Britain’s foreign aid contributions to Yemen, a decision Mr Cleverly said had to be made because of the financial burden placed on London by the pandemic. He also resisted calls for the UK to stop selling arms to the Saudi-led coalition fighting to restore Yemen’s democratically elected government.
In addition, he was directly involved in efforts to revive the controversial 2015 nuclear deal with Iran. He met Iranian officials in November 2021 to discuss the terms of a new deal and attempted to negotiate the release of British-Iranian nationals Nazanin Zaghari-Ratcliffe, Anoosheh Ashoori and Morad Tahbaz. Mrs Zaghari-Ratcliffe and Mr Ashoori have since been released and returned to the UK, while Tahbaz was released from prison on temporary furlough in July.
With negotiations over a new nuclear deal said to be entering a critical phase, Mr Cleverly will probably call for London to adopt a hawkish approach, an attitude that will help to reassure the Gulf states that their concerns regarding Tehran's destabilising behaviour in the region are not being ignored.
Mr Cleverly’s appointment has also raised hopes that the new government will reinstate the position of a dedicated Middle East minister. Two new ministers of state have now been appointed at the Foreign Office. Leo Docherty is a former Scots Guards officer who has good knowledge of the Gulf region. Jesse Norman is an Old Etonian who has previously worked at the Treasury.
The formation of this powerful new ministerial team certainly suggests that, under Ms Truss’s leadership, Britain will be showing a greater willingness to safeguard the interests of its Arab allies.
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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Villarreal (ESP) v Juventus (ITA)
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Should late investors consider cryptocurrencies?
Wealth managers recommend late investors to have a balanced portfolio that typically includes traditional assets such as cash, government and corporate bonds, equities, commodities and commercial property.
They do not usually recommend investing in Bitcoin or other cryptocurrencies due to the risk and volatility associated with them.
“It has produced eye-watering returns for some, whereas others have lost substantially as this has all depended purely on timing and when the buy-in was. If someone still has about 20 to 25 years until retirement, there isn’t any need to take such risks,” Rupert Connor of Abacus Financial Consultant says.
He adds that if a person is interested in owning a business or growing a property portfolio to increase their retirement income, this can be encouraged provided they keep in mind the overall risk profile of these assets.
Dirham Stretcher tips for having a baby in the UAE
Selma Abdelhamid, the group's moderator, offers her guide to guide the cost of having a young family:
• Buy second hand stuff
They grow so fast. Don't get a second hand car seat though, unless you 100 per cent know it's not expired and hasn't been in an accident.
• Get a health card and vaccinate your child for free at government health centres
Ms Ma says she discovered this after spending thousands on vaccinations at private clinics.
• Join mum and baby coffee mornings provided by clinics, babysitting companies or nurseries.
Before joining baby classes ask for a free trial session. This way you will know if it's for you or not. You'll be surprised how great some classes are and how bad others are.
• Once baby is ready for solids, cook at home
Take the food with you in reusable pouches or jars. You'll save a fortune and you'll know exactly what you're feeding your child.
START-UPS%20IN%20BATCH%204%20OF%20SANABIL%20500'S%20ACCELERATOR%20PROGRAMME
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Forced%20Deportations
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Violence%20
%3Cp%3EInstances%20of%20violence%20against%20Syrian%20refugees%20are%20not%20uncommon.%3C%2Fp%3E%0A%3Cp%3EJust%20last%20month%2C%20security%20camera%20footage%20of%20men%20violently%20attacking%20and%20stabbing%20an%20employee%20at%20a%20mini-market%20went%20viral.%20The%20store%E2%80%99s%20employees%20had%20engaged%20in%20a%20verbal%20altercation%20with%20the%20men%20who%20had%20come%20to%20enforce%20an%20order%20to%20shutter%20shops%2C%20following%20the%20announcement%20of%20a%20municipal%20curfew%20for%20Syrian%20refugees.%3Cbr%3E%E2%80%9CThey%20thought%20they%20were%20Syrian%2C%E2%80%9D%20said%20the%20mayor%20of%20the%20Nahr%20el%20Bared%20municipality%2C%20Charbel%20Bou%20Raad%2C%20of%20the%20attackers.%3Cbr%3EIt%20later%20emerged%20the%20beaten%20employees%20were%20Lebanese.%20But%20the%20video%20was%20an%20exemplary%20instance%20of%20violence%20at%20a%20time%20when%20anti-Syrian%20rhetoric%20is%20particularly%20heated%20as%20Lebanese%20politicians%20call%20for%20the%20return%20of%20Syrian%20refugees%20to%20Syria.%3Cbr%3E%3Cbr%3E%3C%2Fp%3E%0A
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
Revival
Eminem
Interscope
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
CRICKET%20WORLD%20CUP%20QUALIFIER%2C%20ZIMBABWE%20
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JOKE'S%20ON%20YOU
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UAE currency: the story behind the money in your pockets
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.