The UK is scrapping its14-day quarantine rule for arrivals from about 60 countries deemed 'lower risk' for coronavirus. AP
The UK is scrapping its14-day quarantine rule for arrivals from about 60 countries deemed 'lower risk' for coronavirus. AP
The UK is scrapping its14-day quarantine rule for arrivals from about 60 countries deemed 'lower risk' for coronavirus. AP
The UK is scrapping its14-day quarantine rule for arrivals from about 60 countries deemed 'lower risk' for coronavirus. AP

Coronavirus: UK opens up travel to 60 countries


Thomas Harding
  • English
  • Arabic

The British government has opened up 60 countries to UK holidaymakers seeking to travel overseas during the summer.

In an effort to save the airline industry from collapse, Britain's Department for Transport publicised a list of 60 “low risk” countries to which people could travel without an enforced 14-day quarantine on their return home.

Currently the lifting of quarantine rules applies to England only. Scotland, Wales and Northern Ireland have not yet decided when to ease travel restrictions.

The move also aims to offer people summer holiday options as well as provide income for airlines that are on the brink of bankruptcy.

The government’s primary goal has been to open up travel to Mediterranean countries despite the UK’s relatively high domestic infection rate.

The decision will follow a traffic light system, drawn from each country’s handling of the coronavirus and its current infection rates. Countries registering “green” are free to be visited while trips to nations on “amber” are also allowed without an enforced quarantine on return.

The UK also named several “red” countries where quarantine-free travel is not permitted. They include the United States, Brazil, Russia and Iran.

There are indications that Britain might quickly change its policy as infection rates rise or fall. “We just need to get the structure right first,” said a Whitehall source. “It might be that we drop one country, put one in and drop another. We can do that short notice.”

Travellers can depart immediately but the change in quarantine rules for returnees will be introduced in England only from next Friday, July 10, with Germany, France, Spain and Italy as well as Canada, Turkey and Thailand among those in the first wave of the agreement.

The list also includes all British Overseas Territories such as Bermuda and Gibraltar. But countries on the list with low infection rates, such as Greece, Australia and New Zealand, have banned British travellers over the UK’s high coronavirus rate.

The move was welcomed by British airlines, which said the relaxed rules came just in time for the peak summer travel season.

A spokesman for Airlines UK, which represents British Airways and easyJet, said: “This gives a clear path to opening further predominantly long-haul destinations in the weeks ahead, and we look forward to working with ministers on measures to mitigate the risk from red countries such as via voluntary testing.”

The announcement allows British citizens to take foreign holidays for the first time since lockdown began on March 23.

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Gallery: Coronavirus around the world

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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.”

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