Charlotte Leslie, head of the Conservative Middle East Council, says the UK must work harder to retain its historical position in the Middle East.
Charlotte Leslie, head of the Conservative Middle East Council, says the UK must work harder to retain its historical position in the Middle East.
Charlotte Leslie, head of the Conservative Middle East Council, says the UK must work harder to retain its historical position in the Middle East.
Charlotte Leslie, head of the Conservative Middle East Council, says the UK must work harder to retain its historical position in the Middle East.

Conservative conference is a chance to show country can 'step up on Middle East'


Thomas Harding
  • English
  • Arabic

After years of political turmoil, British leaders have a chance to show the country can “step up” its interest in the Middle East when the Conservatives gather at the annual conference this week.

Following Brexit, the UK has an enormous challenge – but also a vital opportunity – to retain its historic position in the Gulf, Charlotte Leslie, head of the Conservative Middle East Council, told The National.

Speaking ahead of a crucial Tory party conference, the director of the influential body argued that Britain needed to compete to become “the global ally of choice” for the Middle East.

The war in Ukraine and the rising influence of China alongside a perceived “nervous breakdown” in the West over upholding its values had led to the Gulf taking a more neutral stance.

“If you step into their shoes and look at the West, it's very easy to see a picture where the West is having in effect a nervous breakdown and doesn't quite know what its own self-interest is,” said the Oxford-educated director.

This had not been helped by upheavals in Britain, which has had three prime ministers in the past year, leading to a “lack of continuity”.

But the arrival of Rishi Sunak, “an internationalist”, had steadied Britain’s reputation which had taken a significant blow during Liz Truss’s quixotic administration, particularly over her decision to move the British embassy to Jerusalem.

This was rapidly rescinded by Mr Sunak who was “very adept at calming those waters”, although Ms Leslie could not contain her surprise that Britain “would even consider such a thing”.

Lost influence

The CMEC was originally set up in 1980 to help parliamentarians better understand the Middle East. But since the Iraq invasion of 2003, Britain appeared to have lost its way by following dutifully in the steps of American policy, Ms Leslie suggested.

“There's enormous respect for Britain still and the Middle East really wants us to step up to the potential that we have and that we've historically been,” said the former MP.

“We've always been seen as an as the grown-up, mature, balanced power broker that could resolve disputes.”

But there was “jumpiness” that Britain was following America and “the US is a very different beast, as we know where it stands on Israel and Palestine which still is a very, very big issue in the region”.

With the Chinese and others moving into the region, Britain’s ebbing influence was “a tremendous loss”, as it was trusted by both sides.

“I think we just need to be very conscious of our existing value and maintain and enhance that,” she argued.

That influence could reassert itself if Britain is able to strike a post-Brexit free trade agreement with the six Gulf Co-operation Council countries.

“I think there is still an element of excitement about what Britain can be and do if we do it properly,” she added, speaking at CMEC’s offices in central London.

UAE President Sheikh Mohamed meets British Prime Minister Rishi Sunak. Photo: UAE Presidential Court
UAE President Sheikh Mohamed meets British Prime Minister Rishi Sunak. Photo: UAE Presidential Court

Conservative blues

With a general election looming next year and the Tories consistently polling more than 15 percentage points behind the Labour opposition, another Conservative government is uncertain.

Could Mr Sunak turn around its fortunes at the Manchester conference?

“He's got an extraordinarily difficult task and quite a divided party,” Ms Leslie said. “I think it’s best for him not to listen to too much internal criticism from factions within the party that will probably never be satisfied.”

Her advice was for the Prime Minster to “continue to talk straight to the public”, as he “notably did” on Wednesday over reversing net-zero targets, as the people were “not yet sold on Keir Starmer”, the Labour leader.

But if Labour does come to power, the government would be in a better position under Mr Starmer than the socialist former leader Jeremy Corbyn.

“The Middle East is quite cautious about Labour but I think Keir Starmer has made significant attempts to demonstrate that he's moved on from the Corbyn era,” she said.

“I don't see quite the same level of pessimism in the region that has sometimes accompanied the concept of a Labour government.”

As for her own political future, Ms Leslie, 45, admitted that she might return to to the British Parliament and was on the Conservative candidates shortlist for a potential seat.

“If I can be useful I would like to return but I’ve already been an MP and there are a lot of very talented women who have not had the chance to be an MP,” she said.

Reappointing a full-time Middle East and North Africa minister, a post cut by Boris Johnson last year, would send “a really good signal” because when it had been dissolved that had “a negative impact on the perception of how we valued the region”.

She added that politicians such as Lord Dominic Johnson, the business minister, had “great enthusiasm and knowledge of the region” which was a “really refreshing and a very good sign”.

Charlotte Leslie. Thomas Harding / The National
Charlotte Leslie. Thomas Harding / The National

Brics alarm

The recent decision by the five Brics countries – Brazil, Russia, India, China and South Africa – to admit several new countries including the UAE, Saudi Arabia and Iran, should be a “massive alarm call to the West” as it suggested that it was “no longer reliable”.

“But it's been brewing for some time, partly due to the West's inability to compete to be a global ally of choice so this should really be a wake-up call,” she said.

While it was “complex”, the Middle East was still “enormously important” to world order not only with its natural resources “but there are very profound historic relationships, which actually really matter”, she said.

“One of the things I think often we get wrong with the region is simply seeing it in terms of commerciality and actually there’s a lot more than that,” she said.

“Art, culture and Islam that provide a hugely enriching experience.

“It is absolutely essential to understand it because there are so many tensions there and if you intervene badly you can set off a tinderbox as we saw in Iraq.”

Ms Leslie will be hosting a series of CMEC events every day of the Conservative conference, starting on Sunday, with a debate titled “Can the West and Nato stay relevant in Mena?” that will feature Mina Al-Oraibi, The National’s editor-in-chief, and former ambassador Sir John Jenkins.

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Lightweight
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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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The specs

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RESULT

Australia 3 (0) Honduras 1 (0)
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Honduras: Elis (90 4)

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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Updated: September 27, 2023, 12:41 PM