Keir Starmer speaks on the phone to US President Joe Biden from his office in No 10 Downing Street. Photo: Simon Dawson / No 10 Downing Street
Keir Starmer speaks on the phone to US President Joe Biden from his office in No 10 Downing Street. Photo: Simon Dawson / No 10 Downing Street
Keir Starmer speaks on the phone to US President Joe Biden from his office in No 10 Downing Street. Photo: Simon Dawson / No 10 Downing Street
Keir Starmer speaks on the phone to US President Joe Biden from his office in No 10 Downing Street. Photo: Simon Dawson / No 10 Downing Street

Middle East a focus for Starmer as he 'sends message' with early calls


Tim Stickings
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Early calls to Middle East leaders by Britain’s new Prime Minister Keir Starmer are a sign the region will be high on the Labour government’s agenda, a security expert has said.

Mr Starmer spoke to UAE President Sheikh Mohamed, Israel’s Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas within 48 hours of entering No 10 Downing Street.

Amid fears of a wider Middle East war, Mr Starmer “clearly wanted to send a message” to Israel by urging restraint on its border with Lebanon, said Malcolm Chalmers of the Royal United Services Institute think tank.

Mr Starmer told Mr Abbas that Palestinians had the “undeniable right” to statehood, after an election in which Labour lost seats to pro-Gaza independents even as it romped to victory nationally.

The Middle East conflict is an area that will "take up quite a lot of attention” for the new government, said Mr Chalmers, a former adviser to foreign secretaries Jack Straw and Margaret Beckett.

As well as the "obvious suspects" on the new Prime Minister's call list, it was "also quite significant" that he spoke to the UAE President, Mr Chalmers told a Rusi event on Monday.

"It’s clear that for this government, [the Middle East] is an issue which it will need to devote quite a bit of political attention to."

Keir Starmer gets to work as Prime Minister - in pictures

  • UK Prime Minister Sir Keir Starmer talks to journalists as he travels on-board a plane to Washington to attend a Nato summit. Getty Images
    UK Prime Minister Sir Keir Starmer talks to journalists as he travels on-board a plane to Washington to attend a Nato summit. Getty Images
  • Mr Starmer and his wife Victoria board the plane at Stansted Airport, north of London. AFP
    Mr Starmer and his wife Victoria board the plane at Stansted Airport, north of London. AFP
  • Mr Starmer meets UK legislators from the Scottish Labour Party at 10 Downing Street. Bloomberg
    Mr Starmer meets UK legislators from the Scottish Labour Party at 10 Downing Street. Bloomberg
  • Mr Starmer, centre front, stands with Labour Party MPs at Church House in Westminster, central London. PA
    Mr Starmer, centre front, stands with Labour Party MPs at Church House in Westminster, central London. PA
  • Mr Starmer and First Minister of Wales Vaughan Gething during a visit to the Senedd in Cardiff, Wales. Getty Images
    Mr Starmer and First Minister of Wales Vaughan Gething during a visit to the Senedd in Cardiff, Wales. Getty Images
  • Mr Starmer with First Minister of Northern Ireland Michelle O'Neill and Deputy First Minister of Northern Ireland Emma Little-Pengelly at Stormont Castle, in Belfast. Reuters
    Mr Starmer with First Minister of Northern Ireland Michelle O'Neill and Deputy First Minister of Northern Ireland Emma Little-Pengelly at Stormont Castle, in Belfast. Reuters
  • Mr Starmer meets Scottish First Minister and SNP leader John Swinney during a visit to Edinburgh. Getty Images
    Mr Starmer meets Scottish First Minister and SNP leader John Swinney during a visit to Edinburgh. Getty Images
  • Pro-Palestinian protesters surround the convoy carrying Mr Starmer as it leaves Bute House in Edinburgh. PA
    Pro-Palestinian protesters surround the convoy carrying Mr Starmer as it leaves Bute House in Edinburgh. PA
  • Mr Starmer and Scottish Labour Leader Anas Sarwar during an event in Edinburgh to welcome new Labour MPs in Scotland. PA
    Mr Starmer and Scottish Labour Leader Anas Sarwar during an event in Edinburgh to welcome new Labour MPs in Scotland. PA
  • Mr Starmer delivers a news conference after his first cabinet meeting at Downing Street. EPA
    Mr Starmer delivers a news conference after his first cabinet meeting at Downing Street. EPA
  • Mr Starmer chairs his first meeting of the Cabinet in Downing Street. EPA
    Mr Starmer chairs his first meeting of the Cabinet in Downing Street. EPA
  • Mr Starmer walks up the steps inside 10 Downing Street. Photo: No 10 Downing Street
    Mr Starmer walks up the steps inside 10 Downing Street. Photo: No 10 Downing Street
  • Mr Starmer speaks on the phone with US President Joe Biden from his office. Photo: No 10 Downing Street
    Mr Starmer speaks on the phone with US President Joe Biden from his office. Photo: No 10 Downing Street
  • Mr Starmer poses for his official portrait upon his appointment by King Charles III. Photo: No 10 Downing Street
    Mr Starmer poses for his official portrait upon his appointment by King Charles III. Photo: No 10 Downing Street

Ministerial appointments continued on Monday, with Anneliese Dodds made a junior minister in the Foreign Office under Foreign Secretary David Lammy.

Vernon Coaker, a veteran of the last Labour government under Tony Blair and Gordon Brown, was made a minister of state for defence.

Mr Starmer was spending Monday visiting the devolved governments of Northern Ireland and Wales as part of a drive to "reset" relations between the UK nations.

He will make his first appearance as a world leader at a Nato summit in Washington this week, having already spoken to several allied leaders.

In his call with Mr Netanyahu he said the situation on Israel's border was "very worrying" and said it was "crucial all parties acted with caution".

On Gaza he "set out the clear and urgent need for a ceasefire, the return of hostages and an immediate increase in the volume of humanitarian aid reaching civilians", Downing Street said.

In his call with Sheikh Mohamed he agreed to "deepen co-operation" with the UAE and hailed the outcome of the Cop28 climate summit in Dubai last year.

Pro-Palestinian protesters held a first march under the new Labour government on Saturday. AFP
Pro-Palestinian protesters held a first march under the new Labour government on Saturday. AFP

Asked by The National about Britain's influence in the region, Mr Chalmers said there "may be some issues" on which Britain under Labour departs from US policy on Gaza.

These could include Britain's funding for Palestinian aid agency UNRWA and its stance on the International Criminal Court's investigation into Mr Netanyahu and Hamas leaders.

There could even be a review of arms exports to Israel but “my instinct is that this government will not want to distance itself too much from the European mainstream", he said.

But "if there is a large-scale attack on Lebanon in the coming months – which certainly a lot of Israelis are talking about, and it may happen – then the visibility of that will suddenly increase manifold.

“It’ll be very difficult to evacuate UK nationals who remain in Lebanon. The route to Syria is not as available as it was the last time there was a war. That will be a challenge for our armed forces."

In last Thursday's election Labour's vote share crashed in areas with a large Muslim population, as independent pro-Gaza candidates flourished.

Labour lost several seats once considered safe in the Midlands and north of England, while former leader Jeremy Corbyn won his north London seat as an independent.

Pro-Palestinian campaigners rallied again in London on Saturday as they vowed to keep up pressure on the new government to end arms sales and push for a ceasefire.

"We’re not going away. You need to ensure that the UK ceases to be complicit in the oppression of the Palestinian people," said campaign organiser Ben Jamal.

Brief scores

Toss India, chose to bat

India 281-7 in 50 ov (Pandya 83, Dhoni 79; Coulter-Nile 3-44)

Australia 137-9 in 21 ov (Maxwell 39, Warner 25; Chahal 3-30)

India won by 26 runs on Duckworth-Lewis Method

Brief scoreline:

Liverpool 2

Keita 5', Firmino 26'

Porto 0

Match info

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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.”

Match info

What: Fifa Club World Cup play-off
Who: Al Ain v Team Wellington
Where: Hazza bin Zayed Stadium, Al Ain
When: Wednesday, kick off 7.30pm

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'Champions'

Director: Manuel Calvo
Stars: Yassir Al Saggaf and Fatima Al Banawi
Rating: 2/5
 

THE%20HOLDOVERS
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Updated: July 09, 2024, 4:45 AM