Extremist reporting in the UK prison system and the top security service, MI5, failed to assess the threat from Libyan asylum seeker Khairi Saadallah in the months before the terror incident that killed three people on Saturday.
A judge who handed Saadallah a jail sentence that ended this month warned that efforts to rehabilitate him had gone wrong.
In a court appeal in March, Mr Justice Goss said the judge who sentenced Saadallah had “observed that numerous outside agencies had attempted to help him”.
The Libyan, who is the suspect in the Reading park terror attack, was known to the UK security services.
It was Europe’s first terror attack since countries went into lockdown this year because of the coronavirus pandemic.
Saadallah, 25, was released only 17 days before the attack after a sentence for possessing a bladed article and assault.
On Saturday, three people were killed and more wounded when a man armed with a knife went on a rampage, stabbing people as they enjoyed picnics in the sun at Forbury Gardens.
The assailant then dropped the weapon and fled. Saadallah has been arrested on suspicion of murder.
Sources say he was known to Britain's MI5 internal security services, again raising questions about its monitoring of suspects.
"What you appear to have here is a lone actor and they are obviously particularly hard to detect," said Jonathan Hall, the Independent Reviewer of Terrorism Legislation.
Saadallah arrived in the UK from Libya in 2012 and moved first to the northern England city of Manchester.
A neighbour said one of his family members fought against the Libyan deposed leader, Muammar Qaddafi.
Manchester is home to a large Libyan community and is where the terrorist Salman Abedi, whose family also fought against Qaddafi, plotted and carried out the bombing of the city’s arena, killing 22 people at an Ariana Grande concert in 2017.
Another Libyan, Abdal Raouf Abdallah, is serving a long sentence for co-ordinating from his bedroom in Manchester the movement of ISIS fighters and weapons across Europe and from Libya to Syria.
Abdallah's family settled in Britain after his father, a political opponent of Qaddafi, fled Libya.
Two years ago, Saadallah applied for refugee status in the UK on religious grounds.
He was granted asylum for five years under human rights rules, despite his convictions for violence, because it was too dangerous for him to return home.
But western security sources say Saadallah had been on the radar of MI5 since last year and there was intelligence that he had aspirations to travel for extremist purposes.
He was jailed last October for offences from November 2018, including racially aggravated common assault after he called a police officer a “slave” and spat in her face, carrying a bladed article and assaulting an emergency worker.
Last January Saadallah struck a security guard in the face with his belt when he stopped him from shoplifting.
He showed contempt for the UK legal system when he spat at a judge in court after she sentenced him.
Court documents show he has a history of debt and homelessness, and previously suffered from post-traumatic stress disorder, depression and a personality problem.
Nikita Malik, director of the Centre on Radicalisation and Terrorism at the Henry Jackson Society, said agencies needed more resources.
“The UK is monitoring up to 20,000 people as suspects of interest and from his background he probably was not deemed as a high threat,” Ms Malik said.
“This was not sophisticated and random attacks are hard to stop. If he was a security risk questions we need to ask why he was not deported.
“The issue of resources is important, too. The coronavirus is diverting resources, such as officers dealing with lockdown breaches.
“The coronavirus will also have had an impact as the government’s prevention strategy relies on the public reporting suspicious behaviour but during lockdown this would not have been happening.
"This shows how terrorists will use the pandemic to adapt. Instead of targeting concert halls and shopping centres they now have to look at open public spaces where people might be.”
The UK security services have come under mounting scrutiny over the past three years after terror attacks where the offenders had been known to them, including Abedi.
The most recent was in February when Sudesh Amman stabbed two people in south London.
Amman had been under counter-terrorism surveillance at the time after his release from prison for terror offences.
In the case of Abedi, Parliament's intelligence and security committee ruled there were "failings" and said MI5 had acted "too slowly".
MI5 has admitted it had a policy of allowing Libyans in the UK to travel to fight against Qaddafi and return later, including some who had been under house arrest in the UK as part of counter-terrorist measures.
In February, the UK introduced emergency legislation to end the automatic early release of terror offenders after Amman’s attack.
In November, two people were killed near London Bridge by Usman Khan, who had also been released early from his sentence for plotting to blow up the London Stock Exchange.
On Monday, Home Secretary Priti Patel called Saturday's attack a "tragic, tragic event” and promised action.
"We need to make sure that we learn the lessons from what has happened over the weekend to prevent anything like this from happening again," Ms Patel said.
"It is clear the threat by lone actors is growing. These terrorists are united by the same vile hate for what our country holds dear – decency, tolerance and respect."
She said the UK thwarted 25 terrorist attacks since 2017.
The latest killings follow warnings from experts that an attack was highly likely.
“While those monitored by the authorities are less likely to present a threat during this period, the police must remain vigilant to those who are off the radar or may be using distractions to smuggle into Europe,” Ms Malik said.
“It is therefore imperative that intelligence is shared between countries to ensure that current gaps are not exploited by terrorists.”
One of the most wanted ISIS terrorists, Abdel Majed Abdel Bary, was found hiding in Spain using coronavirus face masks as a disguise.
Director of the Counter Extremism Project think tank, Hans-Jakob Schindler, said there was still a significant terror threat in Europe.
“Only a few weeks into the pandemic, ISIS began calling again on its members to conduct attacks again," Mr Schindler said.
"In April, a first ISIS cell was arrested in Germany that had continued to plan attacks on US installations.
“Therefore, currently, the pandemic does not result in a reduced terrorism threat.
“It remains to be seen how much the increased screen time that Europeans have experienced during the lockdowns have influenced online radicalisation numbers.
"But my guess is that we will see a spike of radicalised individuals in the near future.”
UAE currency: the story behind the money in your pockets
Some of Darwish's last words
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
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4pm Maiden Dh75,000 1,600m
4.30pm Conditions Dh250,000 1,400m
5pm Maiden Dh75,000 1,600m
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The National selections:
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The specs
Engine: Turbocharged four-cylinder 2.7-litre
Power: 325hp
Torque: 500Nm
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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
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
Engine: 2.0-litre 4-cyl turbo
Power: 247hp at 6,500rpm
Torque: 370Nm from 1,500-3,500rpm
Transmission: 10-speed auto
Fuel consumption: 7.8L/100km
Price: from Dh94,900
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MATCH INFO
Karnatake Tuskers 114-1 (10 ovs)
Charles 57, Amla 47
Bangla Tigers 117-5 (8.5 ovs)
Fletcher 40, Moores 28 no, Lamichhane 2-9
Bangla Tiger win by five wickets
Quick pearls of wisdom
Focus on gratitude: And do so deeply, he says. “Think of one to three things a day that you’re grateful for. It needs to be specific, too, don’t just say ‘air.’ Really think about it. If you’re grateful for, say, what your parents have done for you, that will motivate you to do more for the world.”
Know how to fight: Shetty married his wife, Radhi, three years ago (he met her in a meditation class before he went off and became a monk). He says they’ve had to learn to respect each other’s “fighting styles” – he’s a talk it-out-immediately person, while she needs space to think. “When you’re having an argument, remember, it’s not you against each other. It’s both of you against the problem. When you win, they lose. If you’re on a team you have to win together.”
