Priti Patel, leaves after a cabinet meeting in Downing Street in central London last year. Reuters
Priti Patel, leaves after a cabinet meeting in Downing Street in central London last year. Reuters

What Priti Patel's resignation tells us about Brexit, Theresa May, 'global Britain' and UK relations with Israel



When Priti Patel, Britain's international development secretary, set off in August for a holiday in Israel, she did not to tell her cabinet colleagues what she was really up to. The "holiday" turned out to be packed with meetings organised by a pro-Israeli lobbyist. She met Israeli prime minister Benjamin Netanyahu, several other ministers and senior officials and representatives of Israeli tech firms and charities.

The result was that when Mr Netanyahu came to London last week to meet Theresa May, the British prime minister, did not know that her guest was already fully briefed on British policy from his talks with Ms Patel. Cue outrage that a cabinet minister should have violated the ministerial code of conduct and put the prime minister in an embarrassing position.

Ms Patel made it worse by insisting that she had told Boris Johnson, the foreign secretary, who was a fellow campaigner for Britain to leave the European Union in last year's referendum, about the trip in advance, when she plainly had not.

And then it emerged that she had asked her department to give money to the Israeli army to support clinics where it treats wounded Syrians on the occupied Golan Heights. This could never happen: Britain does not recognise the de facto Israeli annexation of the Syrian territory, nor does it give taxpayers’ money to well-funded armies in wealthy countries.

It was then revealed that Ms Patel had had more unannounced meetings in London in September with Israeli officials, including the public security minister, Gilad Erdan. Under severe pressure, Ms Patel resigned from the UK government late on Wednesday evening.

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This sorry saga has been variously interpreted: as a sign of Mrs May's weakness; as proof that two of leading lights of the Leave campaign – Ms Patel and Mr Johnson, who is under fire for his thoughtless and potentially harmful remarks on a British-Iranian woman detained in Iran – are unfit for public office; or more dramatically that Britain, which once ruled a quarter of the world, is now a banana monarchy incapable of running its own government.

In a valedictory dispatch after four years as New York Times bureau chief in London, Steven Erlanger concluded this week that Britain, once famed for common sense and pragmatism, "has become nearly unrecognisable to its European allies".

But there is a simpler, and perhaps even more disturbing, explanation to Ms Patel’s secret working holiday. It is that the vision of “global Britain”, which motivates the Brexiteers, is embodied her actions.

With no clear direction from the prime minster, members of her cabinet make up their own rules, particularly when it comes to the Brexiteers who see their country, once unshackled from the European behemoth, bestriding the globe as in the days of empire.

Ms Patel’s embrace of Israel was foreshadowed in May by a British vote in an obscure corner of the United Nations system. For the first time, Britain voted against a motion at the World Health Assembly, the governing body of the World Health Organisation, calling on Israel to provide improved access to health services in the “Occupied Palestinian Territory, including East Jerusalem and the Occupied Syrian Golan Heights”. Britain, the only member of the EU to vote against, justified the vote on the grounds that health should not be politicised.

But this is a difficult argument to sustain when Britain has been happy to vote in favour of similar, and indeed stronger, motions at the World Health Assembly in the past and at a time when living conditions in Gaza are deteriorating at a rapid rate.

In this case, Britain’s only allies in the 'no' vote were the United States, Australia, Canada, Israel, Guatemala and Togo. Israel and the Anglosphere are seen by Brexiteers as Britain’s partners of choice in the future (there was talk of strategic partnership with India, until it emerged that the only thing the Indian government wants from Britain is to raise the entry quota for Indian nationals, which is out of the question in the current anti-immigrant climate).

At the time of the vote, it was explained that Britain had to stick closely to Washington as the key post-Brexit partner. Thus Britain’s historic responsibility to the Palestinians in the centenary year of the Balfour Declaration should be forgotten; Brexit would mean a fresh start, where only trading interests mattered.

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Ms Patel grasped this chance with both hands. Unfortunately, her portfolio obliged her to fund the Palestinian Authority along with the other European states, supposedly to build up administrative capacity ahead of the arrival of a Palestinian state.

Given the absence of any chance of a Palestinian state in the foreseeable future, it could be argued that propping up the Palestinian Authority is a waste of money and that the Israeli taxpayer should pay for services for the Palestinians. But that is another issue. The least that Ms Patel could do would be to visit the Palestinians and find out how the money is spent. Instead, she preferred to see only the Israeli side.

Earlier this year, it was easy for the British government to hold tight to Washington, however erratic the policies of the White House. But the Trump administration's undermining of the Iran nuclear agreement has been a step too far even for Mrs May's government. The foreign secretary has declared that the deal, for all its faults, is a pillar of regional security.

Now, at the government’s moment of greatest confusion, Ms Patel went too far and was too fast in setting up a new partnership with Israel. But no one should be in any doubt that post-Brexit, when Britain is no longer in the European Union, the lure of Israeli hi-tech will outweigh historic responsibility to the Palestinians.

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Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”

Singham Again

Director: Rohit Shetty

Stars: Ajay Devgn, Kareena Kapoor Khan, Ranveer Singh, Akshay Kumar, Tiger Shroff, Deepika Padukone

Rating: 3/5

Intercontinental Cup

Namibia v UAE Saturday Sep 16-Tuesday Sep 19

Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27

While you're here
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Brief scores:

Newcastle United 1

Perez 23'

Wolverhampton Rovers 2

Jota 17', Doherty 90' 4

Red cards: Yedlin 57'

Man of the Match: Diogo Jota (Wolves)

Tips for SMEs to cope
  • Adapt your business model. Make changes that are future-proof to the new normal
  • Make sure you have an online presence
  • Open communication with suppliers, especially if they are international. Look for local suppliers to avoid delivery delays
  • Open communication with customers to see how they are coping and be flexible about extending terms, etc
    Courtesy: Craig Moore, founder and CEO of Beehive, which provides term finance and working capital finance to SMEs. Only SMEs that have been trading for two years are eligible for funding from Beehive.
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

The smuggler

Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple. 
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.

Khouli conviction

Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.

For sale

A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.

- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico

- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000

- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950