Rishi Sunak sought to swiftly unite the Conservative Party behind his leadership bid on Tuesday in a launch speech which defended outgoing Prime Minister Boris Johnson and unveiled heavyweight allies for his campaign.
With a slick campaign already assembled and dozens of MPs behind him less than a week after Mr Johnson resigned, Mr Sunak sought to appear above the fray of a fractious campaign by saying he would “not engage in the negativity”.
The choreography at a swish London conference centre included a warm-up act on stage by Deputy Prime Minister Dominic Raab, the most senior Tory figure to have named his favoured candidate for prime minister.
Whispers of a surprise endorsement proved correct when Transport Secretary Grant Shapps announced he was ending his own campaign and backing Mr Sunak after failing to gather enough support.
Known for curating his image with branded social media posts, former chancellor Mr Sunak has already recruited thousands of volunteers to his team, and some of his supporters cheered and waved placards as he spoke.
Besides the campaign slogan "Ready for Rishi", the placards that flanked Mr Sunak as he walked on stage proclaimed that he would "rebuild the economy" and "reunite the country".
Mr Sunak had 41 MPs publicly backing him as of Tuesday lunchtime, putting him in a clear lead over rivals such as Penny Mordaunt, Tom Tugendhat and Liz Truss, and ensuring he will clear the 20-vote threshold to make the first ballot.
After Mr Shapps dropped out, Home Secretary Priti Patel announced she would not put her name forward despite being urged to do so by some MPs.
Some of Mr Sunak's backers made the short walk from parliament to work the media huddle outside the conference centre, depicting their candidate as an experienced statesman-in-waiting before a vote has even been cast.
A new prime minister will take on Britain’s formidable challenges in only a few weeks and “there’s only one person who’s got the ability and the track record to do that,” said former minister Robert Jenrick, “and that’s Rishi Sunak”.
Allies praised the furlough scheme that kept many people on a salary during lockdown — “a stroke of genius,” said backer Victoria Prentis MP — and cited his experience of managing that crisis as proof he could handle the job.
Bim Afolami MP laughed off criticism from some of Mr Sunak’s colleagues by paraphrasing former US president Ronald Reagan: “You shall not speak ill of a fellow Conservative”.
Mr Sunak “can appeal to the whole country … north, south, old, young,” Mr Afolami said.
Other big hitters who turned out for Mr Sunak included former defence secretary Liam Fox and ex-party chairman Oliver Dowden, who resigned after the Tories suffered two stinging by-election defeats last month.
But it was not all good news for Mr Sunak, as two Johnson loyalists, cabinet ministers Jacob Rees-Mogg and Nadine Dorries, came out in support of Foreign Secretary Liz Truss’s campaign.
Tory MPs will whittle the list of candidates down to two in the coming days before the wider party membership picks between the two finalists.
Conservative leadership candidates — in pictures
Under pressure from rivals to make a more concrete commitment to lower taxes, Mr Sunak said it was a question of “when, not if”, but that inflation needed to come down first.
He said he wanted to make Britain the “best place in the world to invest more, train more and, critically, to innovate more,” and, again echoing many of his rivals, use post-Brexit freedoms to ditch unwanted regulations.
Mr Sunak’s warning against “comforting fairytales” in a launch video last week had been seen as a note of caution on the tax rises being promised by virtually all the other 10 candidates.
A leaked dossier circulating among Mr Sunak’s opponents described him as a high-tax chancellor, too close to the discredited Mr Johnson, who had enabled “reckless overspending” that other candidates want to bring down.
Critics also seized on a resurfaced video from a BBC documentary in 2001 in which the wealthy Mr Sunak appeared to say he had no working-class friends.
In his speech, Mr Sunak sought to square the circle of being close to Mr Johnson but also one of the mutineers who brought him down — praising the outgoing leader personally but saying their relationship was “no longer working”.
“Boris Johnson is one of the most remarkable people I've ever met and whatever some commentators may say, he has a good heart,” he said. “Is he flawed? Yes. And so are the rest of us.
“I will have no part in a rewriting of history that seeks to demonise Boris, exaggerate his faults or deny his efforts.”
Like the prime minister, Mr Sunak received a police fine for his involvement in an illegal birthday party during the first coronavirus lockdown, but his resignation letter chided Mr Johnson for a lack of seriousness and competence.
“I am prepared to give everything I have in service to our nation,” he concluded, “to restore trust, rebuild our economy and reunite the country” — phrasing which sceptics consider odd after 12 years of Conservative rule.
“I want to have a grown-up conversation where I can tell you the truth: a better future is not given, it is earned,” he said. “That is why I am standing to be the next leader of the Conservative Party and your prime minister.”
MATCH INFO
Bayern Munich 2 Borussia Monchengladbach 1
Bayern: Zirkzee (26'), Goretzka (86')
Gladbach: Pavard (37' og)
Man of the Match: Breel Embolo (Borussia Monchengladbach)
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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.”
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes.
The car
Hertz offers compact car rental from about $300 (Dh1,100) per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
The national park
Entry to Mount Rainier National Park costs $30 for one vehicle and passengers for up to seven days. Accommodation can be booked through mtrainierguestservices.com. Prices vary according to season. Rooms at the Holiday Inn Yakima cost from $125 per night, excluding breakfast.
The National in Davos
We are bringing you the inside story from the World Economic Forum's Annual Meeting in Davos, a gathering of hundreds of world leaders, top executives and billionaires.
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
MATCH INFO
Manchester United v Everton
Where: Old Trafford, Manchester
When: Sunday, kick-off 7pm (UAE)
How to watch: Live on BeIN Sports 11HD
Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Premier League results
Saturday
Crystal Palace 1 Brighton & Hove Albion 2
Cardiff City 2 West Ham United 0
Huddersfield Town 0 Bournemouth 2
Leicester City 3 Fulham 1
Newcastle United 3 Everton 2
Southampton 2 Tottenham Hotspur 1
Manchester City 3 Watford 1
Sunday
Liverpool 4 Burnley 2
Chelsea 1 Wolverhampton Wanderers 1
Arsenal 2 Manchester United 0
UAE currency: the story behind the money in your pockets
MATCH INFO
New Zealand 176-8 (20 ovs)
England 155 (19.5 ovs)
New Zealand win by 21 runs
WRESTLING HIGHLIGHTS
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