The UK’s Border Force officers check the passports of passengers arriving at Gatwick Airport, London, before freedom of movement with the EU ended. Getty
The UK’s Border Force officers check the passports of passengers arriving at Gatwick Airport, London, before freedom of movement with the EU ended. Getty
The UK’s Border Force officers check the passports of passengers arriving at Gatwick Airport, London, before freedom of movement with the EU ended. Getty
The UK’s Border Force officers check the passports of passengers arriving at Gatwick Airport, London, before freedom of movement with the EU ended. Getty

Two per cent of Britons have applied for EU passport since Brexit vote


Neil Murphy
  • English
  • Arabic

Two per cent of Britons have applied for an EU passport since the 2016 Brexit referendum, according to a new study.

Immigration experts Astons surveyed more than 2,000 UK citizens and asked them whether they had sought a passport for an EU state since the UK voted to leave the bloc. Only 2 per cent of those surveyed said they had.

But the study found that up to 8 per cent of respondents are now seeking alternative citizenship after Prime Minister Boris Johnson's trade deal with Brussels in December.

The number in Northern Ireland is far higher, with 13 per cent having applied for a second passport and 28 per cent planning to do so. People born in the province before 2005 can hold citizenship of Ireland, an EU member state.

Many respondents said they hoped to retain the benefits of EU membership, particularly for holidays.

Britons are entitled to 90 days’ visa-free travel over a 180-day period. Freedom of movement within the bloc ended on January 1.

Thirty-three per cent of those surveyed said they wanted a new passport to maintain ease when travelling for leisure, while 32 per cent wanted to continue to identify as British without losing the benefits of EU citizenship.

Fifteen per cent said they no longer wished to identify as a UK citizen, while 12 per cent who applied for another passport did so because they had the option to do so. Five per cent said a second passport would make business travel easier.

Union and EU flags outside the Houses of Parliament as lawmakers debated Britain's withdrawal from the EU. AFP.
Union and EU flags outside the Houses of Parliament as lawmakers debated Britain's withdrawal from the EU. AFP.

Arthur Sarkisian, managing director of Astons, said Brexit prompted millions of British people to take on an EU nationality.

“The UK has certainly been divided by the EU referendum but it would seem as though while many have claimed or enquired about a second passport, those following through on acquiring one equate to a fairly small percentage of the population.

“Of course, with an estimated 67 million people living in the UK and about six million of those already having foreign nationality, these small percentages still represent quite a large number of those looking for a second passport.”

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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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