Rishi Sunak chose a historic building with royal links in the shadow of Windsor Castle to announce his landmark deal aimed at breaking the Northern Ireland Protocol deadlock on Monday, alongside European Commission President Ursula von der Leyen.
The UK Prime Minister hailed the pact, fittingly called the Windsor Framework, as a “decisive breakthrough” in the political stalemate that has led to Northern Ireland being without a government since last year.
The leaders unveiled details of their much-anticipated agreement in the Council Chamber of Windsor Guildhall, a room adorned with elaborate portraits of British royals including the late Queen Elizabeth II, her father King George VI and husband Prince Philip. In 2005, the then-Prince Charles married Camilla Parker Bowles, who became Duchess of Cornwall, at the same venue in a civil ceremony.
While Ms von der Leyen’s visit to the Berkshire town drew attention from tourists who had turned up expecting to see nothing more than Windsor Castle, No 10’s choice of venue sat uneasy with some voices in British politics. The decision to use the area long associated with the monarchy may be interpreted by critics as the government dragging King Charles III into politics.
The golden rule of the British constitution is that members of the royal family should be kept out of political matters, so the decision for Ms Von der Leyen to have tea with the king moments after announcing the historic deal ruffled feathers.
Earlier on Monday, Mr Sunak's government had drawn criticism for recommending that the king meet Ms von der Leyen — even before the Protocol deal had been announced or indeed passed through Parliament. The timing was labelled as “crass” by Arlene Foster, former leader of the Democratic Unionist Party (DUP). She warned that the one-to-one meeting would “go down very badly” in Northern Ireland. A Buckingham Palace representative said: “The king is pleased to meet any world leader if they are visiting Britain and it is the government’s advice that he should do so."
At the press conference to announce he had clinched a post-Brexit deal on Northern Ireland, the Prime Minister drew a smile from his guest when he said negotiations between the UK and the EU had "not always been easy”.
But he insisted his treaty with Brussels marked "a turning point for the people of Northern Ireland” and honoured the spirit of the Good Friday Agreement.
Ms von der Leyen, who twice referred to her host as “dear Rishi”, displayed an attitude towards the Conservative leader that was noticeably warmer than her approach to his predecessors, most notably Boris Johnson.
"I believe we can now open a new chapter in our partnership, a stronger EU-UK relationship, standing as close partners, shoulder-to-shoulder now and in the future," she said.
An EU official told journalists that since Mr Sunak assumed office in October, “the mood has become much better and our work has become more constructive”.
Mr Sunak confirmed MPs would get a chance to vote on the deal, which he was due to outline to the House of Commons on Monday evening.
UK and EU strike post-Brexit deal on Northern Ireland - in pictures
The agreement represents the first major achievement for Mr Sunak's government and comes at a time when the Tory party is trailing Labour in opinion polls.
Keen to get his package through Parliament, Mr Sunak will scrap his predecessor’s controversial legislation to override parts of his own Protocol deal, and in turn the EU will end its legal action against the UK.
Under the deal, a system of "red and green lanes" for trade will be established that will cut red tape for goods moving from the UK to Northern Ireland, Mr Sunak explained.
A new "Stormont Brake" will give the Northern Ireland Assembly a say over EU single market rules being applied to the province.
This means the UK could block European laws at the assembly's request in what the EU said would be "the most exceptional circumstances".
In return, the UK is conceding that European judges will have the final say over the rules — potentially crossing a red line for some MPs.
It remains to be seen if the DUP will support the agreement. Unionist politicians have for months been digging their heels in against pressure to restore power-sharing in Northern Ireland in protest over the Protocol, which they argue undermines the region’s place within the UK.
DUP leader Jeffrey Donaldson rejected suggestions his party had backed the deal shortly before it was publicly announced, stressing that “we’ll take our time to consider the detail and measure a deal against our seven tests”. He later said “significant progress” had been made but “there remain key issues of concern”.
The possibility of a revolt of Tory Brexiteers against the Windsor Framework is another obstacle the Prime Minister will be hoping to avoid.
While his deal could pass through Parliament with the help of Labour MPs, who have indicated their intention to support it, it would look bad for Mr Sunak if he had to rely on opposition votes to make it law.
While Mr Sunak pledged his deal would restore smooth trade between Northern Ireland and the rest of the UK, protect the region’s place in the Union and safeguards its sovereignty, pundits will have to wait to see if the Windsor Framework will be enough to heal divisions. The collapse of power-sharing following last year’s May elections brought underlying disunity between Nationalist and Unionist communities to the surface.
Last week’s shooting of an off-duty police officer in Omagh, claimed by dissident republican group the New IRA, highlighted the fragility of peace in Northern Ireland. The non-fatal attack was mentioned by Mr Sunak and Ms von der Leyen in their addresses in Windsor. Mr Sunak said "those trying to drag us back to the past will never succeed", while the Commission leader said her thoughts were with the victim's family and friends.
Pressure had been mounting on Mr Sunak to strike a deal with Brussels ahead of the 25th anniversary of the Good Friday Agreement in April. The historic deal signed by Tony Blair and then-Irish taoiseach Bertie Ahern helped to bring an end to a period of violence in Northern Ireland known as ‘The Troubles’.
Mr Ahern told The National last month that compromise on both sides was needed to make the 1998 deal possible and a similar approach would be needed by the UK and the EU to break the Protocol deadlock.
Mr Sunak will be hoping his deal achieves precisely that.
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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.”
The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
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Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Groom and Two Brides
Director: Elie Semaan
Starring: Abdullah Boushehri, Laila Abdallah, Lulwa Almulla
Rating: 3/5
Scores in brief:
Boost Defenders 205-5 in 20 overs
(Colin Ingram 84 not out, Cameron Delport 36, William Somerville 2-28)
bt Auckland Aces 170 for 5 in 20 overs
(Rob O’Donnell 67 not out, Kyle Abbott 3-21).
Leaderboard
63 - Mike Lorenzo-Vera (FRA)
64 - Rory McIlroy (NIR)
66 - Jon Rahm (ESP)
67 - Tom Lewis (ENG), Tommy Fleetwood (ENG)
68 - Rafael Cabrera-Bello (ESP), Marcus Kinhult (SWE)
69 - Justin Rose (ENG), Thomas Detry (BEL), Francesco Molinari (ITA), Danny Willett (ENG), Li Haotong (CHN), Matthias Schwab (AUT)
Arabian Gulf League fixtures:
Friday:
- Emirates v Hatta, 5.15pm
- Al Wahda v Al Dhafra, 5.25pm
- Al Ain v Shabab Al Ahli Dubai, 8.15pm
Saturday:
- Dibba v Ajman, 5.15pm
- Sharjah v Al Wasl, 5.20pm
- Al Jazira v Al Nasr, 8.15pm
Bookshops: A Reader's History by Jorge Carrión (translated from the Spanish by Peter Bush),
Biblioasis
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
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