When Ukrainian President Volodymyr Zelenskyy became the first foreign leader since Bill Clinton to sit in a UK cabinet meeting last week, the pictures told a story of where the British national interest lies.
There have been four UK prime ministers since Russia’s full-scale invasion of Ukraine began in February 2022. Keir Starmer is not alone in hoping that there is not another one before the war ends.
The UK is in the unfamiliar position of offering an outlook of stability at a time when turmoil is stalking other key members of the G7.
Mr Zelenskyy arrived in the UK on a mission to ensure that London remains its loudest supporter when it comes to sanctions, arms supplies and diplomatic heft against Russia. Personalising his appeal, the Ukrainian leader said he wants Mr Starmer to show that he is a strongman in the face of international aggression.
That is obviously something Mr Starmer will have to decide on for himself, for it will be an important part of defining his premiership. To go back to the national interest mentioned at the top, Ukraine is certainly part and parcel of how Mr Starmer wants to change the UK with his overwhelming parliamentary majority.
Labour sees defence as an issue that it can own. With the first duty of any government being to defend the country, Mr Starmer sees an opportunity in the reindustrialisation of the UK. It sees the rearmament of Europe as a trend that can boost its own agenda.
Defence is a core national industry that has already sparked into life as a result of the nature of the threat posed by the war in Ukraine. Making things is suddenly the emphasis of defence, and the British think they are well placed to gain from this process.
BAE, the largest UK defence firm, is one of the main shareholders in the European missile consortium MBDA. It has moved to Ukraine, with a factory line to make artillery guns, and is also running maintenance and repair services for weapons supplied by the UK within the country.
There are others, too. Babcock International has financing from the UK Ministry of Defence to provide operations involved in the maintenance, repair and asset management of vehicles. Last week, officials revived the UK’s ability to produce forgings for gun barrels, working in partnership with Sheffield Forgemasters, supporting the repair and overhaul of Ukrainian vehicles. The claim is that this is a first step towards sovereign barrel production.
Labour will also be hoping to boast that it is the party of the masses once again, as it aims for mass production of arms systems
A few hundred German Leopard tanks, a couple of dozen Abrams tanks from the US and more than one dozen UK Challengers are other illustrations of western support. Only this month, Czech President Petr Pavel’s efforts to supply artillery shells to Ukraine have resulted in a deal to build a new factory, rather than scurry around the world to buy up stores.
So far, the Europeans and Americans have been sluggish in the production needed to match Russia on the battlefield. But the UK defence industry’s support means that Ukraine’s armed forces should be able to rely on more to keep it in the fight.
There is a sense in the Labour party that Ukraine is only just the taster of the opportunity. It has a project to overcome Brexit that in these early days has no final destination.
Look at the graph of EU arms imports: it has shot up on an annual basis from about €2 billion ($2.2 billion) in 2022 to more than €5 billion last year. The trajectory is only going one way and supplying this market presents the UK with a huge opportunity, especially in a world where trade barriers are only rising.
There is, however, a threat to such an opportunity given that the EU disregards the UK as a pillar of European defence. This isn’t just about trade barriers, such as tariffs, but the tendency to exclude the UK from the continent’s build-up plans.
While Mr Zelenskyy was meeting the UK cabinet, Ursula von der Leyen was being endorsed by the European Parliament for a second term as European Commission President.
In the political guidelines that she issued for the next European Commission, there is a commitment to appoint a defence commissioner for the first time. This cabinet-level appointee would be charged with delivering a white paper for common European defence programmes within 100 days of taking office.
The Brussels-based think tank Bruegel has warned that one of the prime challenges for this paper is if a “strategic industrial policy in the defence sector should really be focused only on the EU, or whether it should include partner countries such as the UK and Japan”.
The Europeans promised Ukraine a million shells a year, but another think tank, the London-based Royal United Services Institute, projects it will reach this high-water mark only by 2026. There is an obvious gap that the UK’s capital and expertise in the defence sector can potentially fill. London will be hoping that an opening will be left for its participation.
Labour will also be hoping to boast that it is the party of the masses once again, as it aims for mass production of arms systems not just for the UK but for its neighbours, too.
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Company Profile
Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million
Griselda
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ARGENTINA SQUAD
Goalkeepers: Franco Armani, Agustin Marchesin, Esteban Andrada
Defenders: Juan Foyth, Nicolas Otamendi, German Pezzella, Nicolas Tagliafico, Ramiro Funes Mori, Renzo Saravia, Marcos Acuna, Milton Casco
Midfielders: Leandro Paredes, Guido Rodriguez, Giovani Lo Celso, Exequiel Palacios, Roberto Pereyra, Rodrigo De Paul, Angel Di Maria
Forwards: Lionel Messi, Sergio Aguero, Lautaro Martinez, Paulo Dybala, Matias Suarez
SPECS
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PROFILE OF INVYGO
Started: 2018
Founders: Eslam Hussein and Pulkit Ganjoo
Based: Dubai
Sector: Transport
Size: 9 employees
Investment: $1,275,000
Investors: Class 5 Global, Equitrust, Gulf Islamic Investments, Kairos K50 and William Zeqiri
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Kamindu Mendis bio
Full name: Pasqual Handi Kamindu Dilanka Mendis
Born: September 30, 1998
Age: 20 years and 26 days
Nationality: Sri Lankan
Major teams Sri Lanka's Under 19 team
Batting style: Left-hander
Bowling style: Right-arm off-spin and slow left-arm orthodox (that's right!)
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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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Book%20Details
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COMPANY%20PROFILE
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Famous left-handers
- Marie Curie
- Jimi Hendrix
- Leonardo Di Vinci
- David Bowie
- Paul McCartney
- Albert Einstein
- Jack the Ripper
- Barack Obama
- Helen Keller
- Joan of Arc
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Living in...
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.
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now