Liz Truss and Rishi Sunak are battling to be the leader of the Conservative Party and the new British prime minister. Nicholas Donaldson / The National
Liz Truss and Rishi Sunak are battling to be the leader of the Conservative Party and the new British prime minister. Nicholas Donaldson / The National
Liz Truss and Rishi Sunak are battling to be the leader of the Conservative Party and the new British prime minister. Nicholas Donaldson / The National
Simon Mayall is a writer and a retired British Army general
August 26, 2022
On September 5, the governing Conservative party will pick either Rishi Sunak or Liz Truss to be its leader - who will, by extension, become the next British prime minister. Then, in the next two years, that winning candidate must seek a new mandate from the electorate in a general election.
The new prime minister will have no honeymoon period with the public, given the current combination of high taxes, low growth, poor productivity, inflation, inadequate provision of public services, union militancy, and continuing resentment at the Brexit result – a flame kept alive by a media largely hostile to the Tories.
However, given the British media's focus on domestic economic woes, it is sometimes easy to forget that so much of the cost-of-living crisis, and not just in the UK, is a direct result of turbulence and violence abroad. So, while a Sunak or Truss government will have little option but to focus on the domestic economy, it must also seek to shape the international environment in Britain's interest. Into this arena, the whole national toolkit of diplomacy, defence engagement, intelligence-sharing, aid and, importantly, trade must be poured.
While continuing to contribute to those global issues of climate change, the environment, demographic growth and migration, terrorism and state failure, Britain must confront Russia's malign actions in Ukraine, with their dire consequences for energy and grain supplies, and contain what many in the West perceive to be the increasingly predatory behaviour of China. In the meantime, the security-related issues concerning Iran and North Korea have not gone away, nor the threat from extremist violence, or the consequences of Britain's withdrawal from the EU. In all these challenges, Britain must not, and cannot, afford to be a by-stander or a spectator. Continued international turmoil, further challenges to the international rules-based order, and greater stress on trade and the shortening of supply chains can only exacerbate the weaknesses of national economies.
Rishi Sunak and Liz Truss supporters at a hustings event in Norwich North, in the English country of Norfolk. PA
Britain is a "global nation". That is not hyperbole, nor is it post-Brexit hype. It is a fact, and Britain's continuing reach and influence is everywhere in the world, from language, laws, administrative structures, architecture, fashion, music, technology and innovation, and in the militaries of a number of countries. Britain remains a key member of the UN Security Council, a leading member of Nato, a nuclear power, an important friend to the EU, and has close links with all 72 members of the Commonwealth. Her economy, and her defence spending, are among the largest in the world. All of this is at the disposal of a prime minister with the confidence and competence to use them. The policy choices of the next leader will be vital, but so too will be his or her personality and political philosophy.
So, what might we expect from the two candidates for Britain's highest political office?
Neither contender is a Tory insider, both are vocally patriotic and neither has the declinist mindset of many in the so-called establishment. Like former prime minister Margaret Thatcher, neither has come into politics to "manage decline", and both are refreshingly optimistic and ambitious for the people. Both understand the importance of the trans-Atlantic link, see Nato as the primary vehicle for national security, and are committed to the British nuclear deterrent.
Mr Sunak is the smoother, slicker, probably more articulate of the two, although Ms Truss is improving in these aspects. He is a classic immigrant success story, and his commitment to the country that has given him this opportunity is genuine and strong, as is his commitment to a Conservative philosophy of small state, sound economy and personal responsibility. He is an internationalist, rich, with the credibility of a successful financial career behind him, and would move probably more easily, and feel more at home, in the corridors of power. He would almost certainly be more welcome to European leaders, despite having voted to "Leave", but his impact in the US might be less than that of Ms Truss. He is also less comfortable or familiar with the military or the intelligence services.
Given US President Joe Biden's apparent antipathy to Britain, neither may make significant headway. However, given the current security and defence challenges, it is vital that the new prime minister gets to Washington, and other key capitals, early in their tenure, and explains to both domestic and international audiences the importance of collective action by western powers, and close allies.
Ms Truss has been on a more personal journey. Her parents were Labour party supporters, and she was a Liberal Democrat. A lukewarm "Remainer" in the Brexit debate, conscious of the economic disruption, she nevertheless understands the importance and appeal of national sovereignty. Her conservatism is that of the convert, who has had to think through her political philosophy. She has written extensively on issues of political and individual freedom, and is an articulate supporter of free trade. Her time in the Department of Trade, including her work to deliver new free trade agreements has given her exposure in many countries.
Mack Rutherford, 17, celebrates after arriving at Biggin Hill Airport in Kent on Monday, as he continues his bid to set a Guinness World Record as the youngest person to fly around the world solo in a small plane. PA
Bins overflow with rubbish along Princes Street in Edinburgh on Monday, as a strike by municipality cleaners entered its fourth day. PA
On Tuesday a police officer lays flowers near the scene where Olivia Pratt-Korbel, 9, was fatally shot, on Kingsheath Avenue in Knotty Ash, Liverpool. PA
Florists decorate the entrance to 10 Downing Street with flowers in Ukraine's national colours, in London on Tuesday, a day before the besieged country's independence day. AP
A man rides a carriage drawn by shire horses as he harvests wildflower meadow at King's College Cambridge on Tuesday. PA
Hundreds of passengers wait in tunnels under the English Channel after a train broke down on Tuesday. PA
People gather in Edinburgh on Wednesday to take part in a Ukraine independence march. AP
A port worker surfs at the Port of Felixstowe, Britain's biggest and busiest container terminal, on Wednesday after members of the Unite union went on strike. PA
Labour leader Sir Keir Starmer with British soldiers in Wiltshire on Wednesday, where he saw Ukrainian soldiers being trained by the army as part of Operation Interflux. PA
Pupils congratulate each other after receiving their GCSE results at Roedean School in Brighton, on Thursday. PA
Samira, a golden-headed lion tamarin, stands on a scale during the London Zoo's annual weigh-in on Thursday. AFP
Royal Mail staff join a Communication Workers Union strike outside a post office in London on Friday. More than 115,000 postal workers are on strike in a dispute over pay, the biggest walkout since 2009. EPA
British Prime Minister Boris Johnson poses for a photograph with members of staff at the South-West London Elective Orthopaedic Centre in Epsom on Friday. AFP
Her current tenure as Foreign Secretary has put her in the forefront of helping coalesce opposition to Russian President Vladimir Putin, and educated her in the leverage Britain's well-respected armed forces can give the country’s prime minister. She will be a keen advocate of higher defence spending, and a more forward-leaning security posture. That security posture will include strengthening defence agreements with like-minded allies and partners. She has called for a "global Nato", although what that would mean in terms of commitments remains to be seen. A good relationship with the EU, and certain European leaders, is very important, but Ms Truss is unlikely to sacrifice national interests for short-term consensus. Indeed, under Ms Truss, Britain may well attempt to move even further from the European economic model. Given the importance of energy security, and its linkage to economic security, she would, in all likelihood, increase Britain’s engagement with partners in the Gulf, where the country has had decades of very close relationships.
Given the scale of the challenges facing an incoming prime minister, both Mr Sunak and Ms Truss will need to maximise Britain's international position in support of their efforts to address the domestic problems. Both have good credentials for engaging globally, although Ms Truss may feel more comfortable with stressing the hard-power aspects of what Britain brings to the world.
Time will be short for either candidate, given the proximity of the next general election. And whatever be their respective plans, hopes and aspirations, both at home and abroad, there are always what former prime minister Harold Macmillan identified as the greatest challenge for political leaders – "events, dear boy, events”.
Emiratisation at work
Emiratisation was introduced in the UAE more than 10 years ago
It aims to boost the number of citizens in the workforce particularly in the private sector.
Growing the number of Emiratis in the workplace will help the UAE reduce dependence on overseas workers
The Cabinet in December last year, approved a national fund for Emirati jobseekers and guaranteed citizens working in the private sector a comparable pension
President Sheikh Khalifa has described Emiratisation as “a true measure for success”.
During the UAE’s 48th National Day, Sheikh Khalifa named education, entrepreneurship, Emiratisation and space travel among cornerstones of national development
More than 80 per cent of Emiratis work in the federal or local government as per 2017 statistics
The Emiratisation programme includes the creation of 20,000 new jobs for UAE citizens
UAE citizens will be given priority in managerial positions in the government sphere
The purpose is to raise the contribution of UAE nationals in the job market and create a diverse workforce of citizens
MATCH INFO
West Ham United 2 (Antonio 73', Ogbonna 90 5')
Tottenham Hotspur 3 (Son 36', Moura 42', Kane 49')
MATCH INFO
Manchester United 1 (Fernandes pen 2') Tottenham Hotspur 6 (Ndombele 4', Son 7' & 37' Kane (30' & pen 79, Aurier 51')
Man of the match Son Heung-min (Tottenham)
ICC Intercontinental Cup
UAE squad Rohan Mustafa (captain), Chirag Suri, Shaiman Anwar, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Saqlain Haider, Ahmed Raza, Mohammed Naveed, Imran Haider, Qadeer Ahmed, Mohammed Boota, Amir Hayat, Ashfaq Ahmed
Fixtures Nov 29-Dec 2
UAE v Afghanistan, Zayed Cricket Stadium, Abu Dhabi
Hong Kong v Papua New Guinea, Sharjah Cricket Stadium
Ireland v Scotland, Dubai International Stadium
Namibia v Netherlands, ICC Academy, Dubai
Farage on Muslim Brotherhood
Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister. "We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know. “All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.” It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins. Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement. The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.
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Price, base: Dh315,000
Engine: 3.0-litre V6
Transmission: Seven-speed automatic
Power: 335hp @ 5,000rpm
Torque: 500Nm @ 1,370rpm
Fuel economy 5.9L / 100km
'Worse than a prison sentence'
Marie Byrne, a counsellor who volunteers at the UAE government's mental health crisis helpline, said the ordeal the crew had been through would take time to overcome.
“It was worse than a prison sentence, where at least someone can deal with a set amount of time incarcerated," she said.
“They were living in perpetual mystery as to how their futures would pan out, and what that would be.
“Because of coronavirus, the world is very different now to the one they left, that will also have an impact.
“It will not fully register until they are on dry land. Some have not seen their young children grow up while others will have to rebuild relationships.
“It will be a challenge mentally, and to find other work to support their families as they have been out of circulation for so long. Hopefully they will get the care they need when they get home.”
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.”