Rishi Sunak reaffirmed the government’s commitment to the Abraham Accords at a diplomatic reception to honour the agreement. Photo: Board of Deputies of British Jews
Rishi Sunak reaffirmed the government’s commitment to the Abraham Accords at a diplomatic reception to honour the agreement. Photo: Board of Deputies of British Jews
Rishi Sunak reaffirmed the government’s commitment to the Abraham Accords at a diplomatic reception to honour the agreement. Photo: Board of Deputies of British Jews
Rishi Sunak reaffirmed the government’s commitment to the Abraham Accords at a diplomatic reception to honour the agreement. Photo: Board of Deputies of British Jews

Rishi Sunak heaps praise on Abraham Accords and 'dividend of diplomacy'


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The Abraham Accords represent one of the “greatest achievements in the long process of securing peace in the Middle East”, said British Prime Minister Rishi Sunak.

Mr Sunak made the comments at a reception to mark the second anniversary of the accords, which were signed in Washington by the UAE, Bahrain and Israel.

The event on Wednesday in the UK was also attended by Reem Al Hashimy, UAE Minister of State for International Co-operation; Zayed Alzayani, Bahrain’s Minister of Industry and Commerce; and ambassadors from the Emirates, Israel, Bahrain and Morocco.

“Today we send a clear message about our commitment to the Accords and all that they represent,” said Mr Sunak.

“The accords have kick-started a new era of relations in trade, tourism, security and more. This is the dividend of diplomacy.

Israel and the UAE signed a free trade agreement in May. It could double bilateral trade in just five years.”

Travel has also boomed between the two countries with the introduction of direct flights, said Mr Sunak.

Bahrain and Israel have now signed 40 agreements, including a major defence deal, increasing resilience to shared threats.

“This would have been impossible just a few years ago,” said Mr Sunak.

A Jewish man attends the celebration of the festival of Hanukkah at Expo 2020 Dubai. EPA
A Jewish man attends the celebration of the festival of Hanukkah at Expo 2020 Dubai. EPA

“But it does show how we can transform peace and stability in the region.”

He said the UK was committed to working with all partners to take the “initiative from strength to strength”.

“It is almost exactly 45 years since Anwar Sadat travelled to Israel to address the Knesset,” said Mr Sunak.

“With [the] Abraham Accords, our generation took up the torch. Now we must continue the journey. We must show that by working together more closely we can deliver lasting peace, stability and prosperity. And more than anything we can deliver hope.”

The UAE and Bahrain signed the Abraham Accords in 2020 to establish relations with Israel.

Morocco and Sudan later signed agreements with Israel.

British Prime Minister Rishi Sunak with Reem Al Hashimy, UAE Minister of State for International Co-operation. Photo: UK Abraham Accords Group
British Prime Minister Rishi Sunak with Reem Al Hashimy, UAE Minister of State for International Co-operation. Photo: UK Abraham Accords Group

US President Joe Biden’s administration has pledged to “extend and deepen” the accords.

“We will seek to extend and deepen Israel’s growing ties to its neighbours and other Arab states, including through the Abraham Accords, while maintaining our ironclad commitment to its security,” said a US strategy document detailing a five-pronged approach to Middle East security.

“We will also continue to promote a viable two-state solution that preserves Israel’s future as a Jewish and democratic state while meeting Palestinian aspirations for a secure and viable state of their own.”

'No plans to move embassy to Jerusalem'

A spokeswoman for No 10 on Thursday confirmed Mr Sunak had scrapped his predecessor Liz Truss's plan to move the British embassy in Israel from Tel Aviv to Jerusalem.

“It has been looked at. There are no plans to move the British embassy,” the representative told reporters.

Ms Truss made her intention clear to Israeli Prime Minister Yair Lapid in September when they met on the sidelines of the 77th UN General Assembly in New York.

Her comments were seen as controversial and sparked warnings from faith leaders about the potentially damaging effect a relocation of the embassy could have on peace between Israelis and Palestinians.

In a statement, the Palestinian Mission to the UK welcomed the change of course from Downing Street.

“We would like to thank the UK government, opposition parties, faith leaders, activists and members of the public whose efforts have helped keep the UK in line with international law on the matter, Husam Zomlot, the Palestinian ambassador to the UK, said.

“The question about the location of the UK’s embassy should never have been asked in the first place.

“There is much work to be done to create a conducive environment for peace in the Middle East and make amends for the historic injustice caused by the Balfour Declaration 105 years ago.

“We call on the British government to play an active role, recognise the State of Palestine, affirm the UK’s support for the rights of Palestinian refugees, ban all illegal goods and products from settlement in occupied territories and sanction companies working in and profiting from them.

“The full and equal application of international law is the way forward towards a lasting and just peace.”

Muslim, Jewish and Christian figures had expressed unease about the mooted change.

Cardinal Vincent Nichols, the leader of the Catholic Church in England and Wales, said he had “profound concern” about the plan, and said the move “would be seriously damaging to any possibility of lasting peace in the region and to the international reputation of the United Kingdom.”

“Pope Francis and the leaders of churches in the Holy Land have long called for the international Status Quo on Jerusalem to be upheld, in accordance with the relevant UN resolutions. The city must be shared as a common patrimony, never becoming an exclusive monopoly of any party,” he added in a tweet.

The Movement for Reform Judaism said it opposed Ms Truss’s plan and was committed to “two viable states as the only just and realistic solution to the present situation.”

“Consequently, we would caution against the government taking action that might undermine peace in the region,” the group added.

Zara Mohammed, Secretary General of the Muslim Council of Britain, wrote to Ms Truss to say she was “alarmed” by her comments. She added that any relocation of the embassy to Jerusalem “does not serve the UK’s interests”.

“If anything, the relocation of the British embassy could result in many destabilising repercussions,” she said. “This point is underscored by respected security analysts and academics.”

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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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Updated: November 04, 2022, 2:35 PM