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As he hopes to shed the colonial hangovers of the UK's diplomatic service, David Lammy could also become the first foreign secretary to accept the UK's position as a “middle-sized power” in a shifting world order.
Mr Lammy, a lawyer-turned politician who has served as MP for London’s Tottenham since 2000, has been Labour's top diplomat through the invasion of Ukraine and the Israel-Gaza war. With the party consistently leading the polls by 20 per cent, he is expected to be appointed foreign secretary after the general election on July 4.
He has spent the past months meeting with possible counterparts in the US, France, Ukraine and the Middle East, while forging a foreign policy in line with the party’s domestic ambitions and his personal heritage.
He has led the party’s shift in position towards Israel, from unequivocal support for Israel’s military campaign in Gaza, to a more critical one. He has called for an immediate humanitarian ceasefire, and questioned the UK's arms sales to Israel without yet calling for an end to these.
His foreign policy vision, which he calls “progressive realism”, would continue British support for Ukraine, strengthen multilateral institutions such as Nato, engage the UK's Gulf allies in a regional peace process, and also work with China on a green transition.
Born in London to Guyanese parents, he continually reminds audiences that his family’s heritage as slaves to the West Indies will be part of his “responsibility” in a future Labour government – bringing reforms to a Foreign, Commonwealth and Development Office that is often criticised as elitist.
"Growing up in Tottenham, in Thatcher's Britain, I knew what it meant to go to bed hungry, to be told to limit my ambitions," he said in a recent campaign video.
His parents gave him a powerful sense of Guyanese traditions, and yet he always had questions about his ancestors. “The truth is, we are the descendants of enslaved people and that means that there's always a bit of you that doesn't know where you are from,” he told The National in an earlier interview in Dubai last year.
A DNA test that he took in 2007 helped trace his family’s origins to southern and West Africa, he added.
He fears the need for a sense of belonging in British society is fuelling tribalism and identity politics at the expense of unity. “We're living in a society where there are profound problems with a new tribalism that's driving us apart, not driving us together,” he said then.
This is a subject he explores in his book, Tribes: a Search for Belonging in a Divided Society (2020).
Inheriting a middle-sized world power
Mr Lammy would be taking on the role at a time when the UK's influence on the world stage has declined, experts say. This is caused in part by the cuts to the foreign aid budget, and the growing sway of emerging economies from the so-called Global South.
Veteran diplomats Tom Fletcher, Moazzam Aziz and Mark Sedwill described the UK as an “offshore middle-sized power” in a landmark foreign policy report, The World in 2040, published by the University College London’s Global Governance Institute earlier this year.
Lynchpin vs middle power
“It's not the 1990s any more, where you had key linchpin states really underwritten by the US, who had the power, authority and who were able to drive forward collective action,” said Dr Tom Pegram, a co-author of the report and associate professor of Global Governance the UCL.
Instead the UK would need to work to develop coalitions with other middle powers, with whom it may not always share the same values, to achieve its overseas objectives.
“If the 1990s were the years of the G7, today the G20 is a much more representative body of states,” Dr Pegram said.
“It's a question of distinguishing between strategy and tactics. There are countries out there that are incredibly important now within the geopolitical theatre, who don't share our values and we need to get them on side.”
This is a reality that Mr Lammy appears to accept. In an essay for Foreign Affairs magazine, which served as the blueprint for his progressive realism foreign policy, he called for a mastering of the “art of grand strategy” in British diplomacy.
This would take cues from the “WhatsApp diplomacy” of Emmanuel Macron, whom he says pursues more practical economic relations overseas, but also of emerging actors including India, Brazil and the UAE whose “dynamic diplomacy” sees them pivoting away from the US and striking deals with all of the world's great powers.
Although the UK must acknowledge China’s aggressive posturing and threatened invasion of Taiwan, it was also bound to working with China on tackling global issues like climate change, he suggested.
More diplomats were needed on the ground, and fewer of them in Whitehall where they sit at their desks compiling biographies, he said, promising to establish a new “school of diplomacy” that would revamp the ossified practices of the FCDO.
“It’s an acknowledgement that the UK is a middle power, a diminished country on the world stage and has been so for some time, both in terms of moral standing and economic offerings,” said Dr Judith Jacob, director of geopolitical risk and security intelligence at the consultancy Forward Global.
“We’re not investing heavily abroad and we’re not a great investment destination either. Other countries look at our political squabbling and think – what's going on there?” she added.
Restoring stature
Labour leader Keir Starmer has promised to spend 2.5 per cent of GDP on defence and to maintain the continuous at sea nuclear deterrent. Among the party's candidates are army veterans, former intelligence offices, and diplomats.
UK really needs to act swiftly to join other European countries in recognising Palestine
Andrew Whitely,
Balfour Project
One challenge for Mr Lammy will be maintaining relations with the US should Trump be elected president this year, with a US-UK trade deal still being negotiated. He is a friend of Barack Obama's, and the Labour party's policies are often aligned and shaped by those of Biden's Democrats.
At a Republican party event he vowed to find “common cause” with a possible Trump government, and has already met with former secretary of state Mike Pompeo.
But this could be undermined by earlier comments he made about the then-president, and the continued pronouncements against him by members of his party. His more vocal past under Labour's Jeremy Corbyn-led leadership will have to be tempered, experts say.
Mr Lammy turns to France in his ambitions to build an EU-UK security pact, where he is said to have built good relations with Mr Macron and his entourage.
During a visit to Ukraine in May with shadow defence secretary John Healey, he stressed Labour’s continued commitment.
Yet Mr Lammy’s vision is also soft on numbers. He has declined to say whether he would increase foreign aid budgets back to their pre-Covid levels of 2.7 per cent of GDP, or whether he would increase the UK's support for Ukraine.
“It’s an exercise in expectations management,” said Dr Jacob. Decisions on Ukraine are still likely to be guided by the US, and the outcome of the presidential elections there later this year, she added.
Whereas Boris Johnson was caught reciting Rudyard Kipling during a visit to Myanmar when he was foreign secretary, Mr Lammy’s approach is more likely to be in tune with the mood in the Global South, which makes up more than half of the G20.
“Lammy recognises our standing among countries of the Global South, given Britain’s colonial history. He does acknowledge that our standing as a superpower has been whittled down,” said Dr Jacob.
“I suspect he might do a better job at restoring stature.”
Labour's Gaza tone
Mr Lammy has been actively meeting with Arab ministers, making more than a dozen trips to the region since the war broke out after the October 7 Hamas attacks.
The Gulf is where he sees the brokers of a potential peace process, prompting trips to Qatar and Saudi Arabia.
He has said he would accept the verdicts from the international courts, where Israel is currently being challenged by South Africa at the International Court of Justice, and a request for arrest warrants was made by the chief prosecutor of the International Criminal Court.
Where Gaza is concerned in the UK, Mr Lammy appears to be meeting everyone – from Arab ambassadors, to former British diplomats to the region and international rights groups.
His willingness to engage personally has won him praise – though one campaigner expressed surprise at the inexperience in some of his questions.
But critics say this is not enough. They call for more sanctions on Israeli officials, an end to UK arms sales to Israel, and end to the UKs trade agreement with Israel.
Labour has sought to fix the damage to the party among left-wing and British Muslim voters, who have felt alienated by its stance on Gaza. The election has seen a wave of challengers to Labour, most of them former members or supporters of the party, running with Palestine as their main cause.
Palestinian statehood recognition features in the Labour manifesto unveiled last week as “part of a peace process”.
This leaves it open as to whether a future Labour government would unilaterally recognise Palestine without agreement from Israel – something which current Foreign Secretary David Cameron had promised to deliver.
The vacuum over a UK policy on Palestine has prompted a group of former British diplomats to draft an action plan for a prospective UK government.
“Labour has a chance to make a break from the Conservatives and show that it stands for a values and rule-of-law based government,” Andrew Whitley, chairman of the trustees of the Balfour Project, which published the action plan, told The National.
Statehood recognition would be a low-hanging fruit. “UK really needs to act swiftly to join other European countries in recognising Palestine. This is not something to be deferred to some indefinite peace process, or to a better time,” he said.
“This is the moment where it really needs to happen, that Britain has a chance to show politically, that it accepts its responsibility.”
The UK could leverage its strong security relations with Jordan and Israel, as well as its “important” economic relations with the Gulf states, in bringing about a peace process and accountability for the Palestinians.
“It’s the time to use that influence that they have, rather than simply waiting to see what’s coming from Washington,” Mr Whitley said.
UAE squad
Ali Kashief, Salem Rashid, Khalifa Al Hammadi, Khalfan Mubarak, Ali Mabkhout, Omar Abdelrahman, Mohammed Al Attas (Al Jazira), Mohmmed Al Shamsi, Hamdan Al Kamali, Mohammad Barghash, Khalil Al Hammadi (Al Wahda), Khalid Eisa, Mohammed Shakir, Ahmed Barman, Bandar Al Ahbabi (Al Ain), Adel Al Hosani, Al Hassan Saleh, Majid Suroor (Sharjah), Waleed Abbas, Ismail Al Hammadi, Ahmed Khalil (Shabab Al Ahli Dubai) Habib Fardan, Tariq Ahmed, Mohammed Al Akbari (Al Nasr), Ali Saleh, Ali Salmeen (Al Wasl), Hassan Al Mahrami (Baniyas)
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.”
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
Concrete and Gold
Foo Fighters
RCA records
Top 10 most polluted cities
- Bhiwadi, India
- Ghaziabad, India
- Hotan, China
- Delhi, India
- Jaunpur, India
- Faisalabad, Pakistan
- Noida, India
- Bahawalpur, Pakistan
- Peshawar, Pakistan
- Bagpat, India
If you go...
Fly from Dubai or Abu Dhabi to Chiang Mai in Thailand, via Bangkok, before taking a five-hour bus ride across the Laos border to Huay Xai. The land border crossing at Huay Xai is a well-trodden route, meaning entry is swift, though travellers should be aware of visa requirements for both countries.
Flights from Dubai start at Dh4,000 return with Emirates, while Etihad flights from Abu Dhabi start at Dh2,000. Local buses can be booked in Chiang Mai from around Dh50
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RESULTS
5pm: Maiden (PA) Dh80,000 2,200m
Winner: Arjan, Fabrice Veron (jockey), Eric Lemartinel (trainer).
5.30pm: Maiden (PA) Dh80,000 1,400m
Winner: Jap Nazaa, Royston Ffrench, Irfan Ellahi.
6pm: Al Ruwais Group 3 (PA) Dh300,000 1,200m
Winner: RB Lam Tara, Fabrice Veron, Eric Lemartinal.
6.30pm: Shadwell Gold Cup Prestige Dh125,000 1,600m
Winner: AF Sanad, Bernardo Pinheiro, Khalifa Al Neyadi.
7pm: Shadwell Farm Stallions Handicap (PA) Dh70,000 1,600m
Winner: Jawal Al Reef, Patrick Cosgrave, Abdallah Al Hammadi.
7.30pm: Maiden (TB) Dh80,000 1,600m
Winner: Dubai Canal, Harry Bentley, Satish Seemar.
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
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
Company%20profile
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Company%20Profile
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The specs
Engine: 3.0-litre 6-cyl turbo
Power: 435hp at 5,900rpm
Torque: 520Nm at 1,800-5,500rpm
Transmission: 9-speed auto
Price: from Dh498,542
On sale: now
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UAE currency: the story behind the money in your pockets
Teams in the EHL
White Bears, Al Ain Theebs, Dubai Mighty Camels, Abu Dhabi Storms, Abu Dhabi Scorpions and Vipers
Score
Third Test, Day 2
New Zealand 274
Pakistan 139-3 (61 ov)
Pakistan trail by 135 runs with 7 wickets remaining in the innings