UK stressing de-escalation in Gaza and Lebanon during Bahrain and Jordan trip

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UK Foreign Secretary David Lammy is visiting Bahrain and Jordan on Wednesday, where he will push calls for de-escalation in the Gaza war that is threatening to also engulf Lebanon.

His visit comes just after the one-year anniversary of the October 7 Hamas attack on Israel, and amid fears that Israel’s military is expanding its ground operation in Lebanon.

He will stress the importance of working with regional partners and demand that Iran and its proxies stop attacks which are causing chaos and destruction for the region and its people.

“The situation is incredibly dangerous and further escalation or miscalculation in the region is in no one’s interests,” Mr Lammy said.

David Lammmy is expected to discuss efforts to bring security and stability to the Middle East. PA Wire

“I am pleased to be back in the region to meet with our key partners in Bahrain and Jordan and see first-hand our combined efforts towards building long-term security and stability in the Middle East.

“We must not waver at this critical period to achieve ceasefires in Gaza and Lebanon, to get more desperately needed aid into Gaza, and secure the release of all hostages.

“Our nations share deep-rooted partnerships across defence, trade, and security, which I look forward to building upon.”

Mr Lammy is expected to discuss efforts to bring security and stability to the Middle East and reiterate the UK’s call for an immediate ceasefire in Gaza and Lebanon.

The UK Government has repeatedly called for a ceasefire and de-escalation as the Gaza war spread to include greater Israeli operations in Lebanon and attacks by Iran. While in Bahrain, Mr Lammy will meet British armed forces personnel who are helping to maintain security in the Gulf, including commercial shipping in the Red Sea which has come under fire from Iran-backed Houthis in Yemen. In Jordan, he will meet senior leaders, including Foreign Minister Ayman Safadi, and express the UK’s support for the country’s role in delivering much needed humanitarian aid for the people of Gaza.

On Monday, Prime Minister Keir Starmer condemned Iran’s latest ballistic missile attack on Israel and urged the region to “step back from the brink” and find a political solution to the crisis.

Mr Lammy is also expected to discuss trade with his regional counterparts as the government prepares to host a major international investment summit on October 14. In Bahrain he will tour HMS Lancaster, which has been operating in the region since 2022.

Bahrain hosts a permanent support base for the Royal Navy, known as HMS Juffair, which was opened in 2018.

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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UK stressing de-escalation in Gaza and Lebanon during Bahrain and Jordan trip

David Lammy highlights the importance of working with regional partners

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