Boris Johnson has won the UK Conservative party leadership contest and will take office as Britain's new prime minister. Getty
Boris Johnson has won the UK Conservative party leadership contest and will take office as Britain's new prime minister. Getty

Boris Johnson has won the battle to become PM – now the real work begins



Britain's incoming Prime Minister, Boris Johnson, will face numerous immediate challenges – not least the Iran shipping crisis - but standing above them all will be that of Brexit. Here, whatever he does will be shaped by the linked constraints of time and of parliamentary arithmetic.

As regards time, Britain is due to leave the EU on October 31 and Johnson has made doing so, rather than seeking a further extension, the non-negotiable cornerstone of his leadership. That is a shade over three months away but the reality in terms of “political time” – given summer holidays in London and Brussels, and the British parliament’s break for party conferences in September – is much shorter.

During that period, Johnson is either going to have to renegotiate the Brexit deal or decide to leave without a deal. There is very little sign that the EU will change the substance of the withdrawal agreement, including the defining issue of the “backstop” arrangements for the Irish border. So, the choices will quickly become a cosmetically changed deal or no deal.

It is here that the parliamentary arithmetic becomes crucial. The Tory Party does not have a majority by itself, and relies upon the votes of the Democratic Unionist Party (DUP) for a working majority. This currently stands at four but may well be reduced to three after a by-election due on August 1.

Given the splits within his party over Brexit, proposing a cosmetically changed deal would almost inevitably mean that the pro-Brexit wing would vote it down, as they did Theresa May’s version. It’s likely that even a substantively changed deal would be insufficient for some of them. In particular, it has been posited that he might seek to change the current withdrawal agreement so that the Irish backstop customs measures applied only to Northern Ireland, rather than to the UK as a whole. That is the one change the EU might well accept, as it was in fact the original proposal. But, then, he would lose DUP support.

So, either as his first or second choice, that leaves no deal. But that would be opposed by the other wing of his party, comprising those who are either anti-Brexit or at least opposed to no-deal Brexit. Their ranks will be swelled by the arrival of several ex-ministers, including the former chancellor Philip Hammond, on the backbenches. If given the chance, parliament will prevent no deal.

That might involve forcing the government to seek another extension – but the EU would probably only grant that if there was a plan for an election or another referendum. It might involve forcing the government to revoke Article 50 notification and halt Brexit altogether, although that is extremely unlikely. It might mean bringing down the government in a vote of no confidence.

For this reason, there has been much talk that Johnson might “prorogue” or suspend parliament, to allow no deal to happen by default, but there are many complex procedures that parliamentarians can use to prevent this. They have already taken the first steps towards doing so. So, it is very unclear that prorogation would succeed. It might also face legal challenge, and it would certainly prompt a major political and constitutional crisis.

The only way of changing the parliamentary arithmetic is by having a general election. That could happen if the opposition win a no confidence vote or – through more complex procedures – could be initiated by Johnson.

However, here again time is a factor. There would not be enough time before October 31 to hold one, so another extension would be needed. But that would mean Johnson fighting an election having broken his central, defining pledge on the leaving date. That would see him losing significant numbers of voters to the new Brexit Party. It is therefore very likely that Johnson would lose such an election.

Alternatively, if Johnson does manage to force through no-deal Brexit then the resultant splits in his party, along with his lack of majority, would see him fighting an election immediately afterwards, against the backdrop of what could be extensive economic dislocation or, at least, significant disruption. Moreover, many voters will recall that nothing remotely like this was promised by Johnson himself, when he led the campaign to leave the EU in 2016. In these circumstances, too, he would be likely to lose an election.

There are many permutations of how these different scenarios could play out. But all of them run into some version of the same basic realities of time and numbers, as well as the fact that the electorate are as bitterly divided by Brexit as their politicians. Any path that Johnson might choose seems to have one unmovable blockage or another.

It is in the nature of things that something will happen, however unlikely it now seems. No one can say what that will be. That probably extends to Johnson himself, unless he has some plan up his sleeve that he has not yet announced, and which no one else has thought of. One thing he will be aware of, having for so long yearned to hold the office, is that the record for the shortest tenure as prime minister is 119 days.

As things stand, Johnson has 100 days to deliver his Brexit promise. If he fails to do so, he may well end up setting a new record. The same may apply if he succeeds.

Chris Grey is a professor of organisation studies at Royal Holloway, University of London and the author of The Brexit Blog

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.”

The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

The rules on fostering in the UAE

A foster couple or family must:

  • be Muslim, Emirati and be residing in the UAE
  • not be younger than 25 years old
  • not have been convicted of offences or crimes involving moral turpitude
  • be free of infectious diseases or psychological and mental disorders
  • have the ability to support its members and the foster child financially
  • undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
  • A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

The%20Super%20Mario%20Bros%20Movie
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UAE SQUAD

Ali Khaseif, Mohammed Al Shamsi, Fahad Al Dhanhani, Khalid Essa, Bandar Al Ahbabi, Salem Rashid, Shaheen Abdulrahman, Khalifa Al Hammadi, Mohammed Al Attas, Walid Abbas, Hassan Al Mahrami, Mahmoud Khamis, Alhassan Saleh, Ali Salmeen, Yahia Nader, Abdullah Ramadan, Majed Hassan, Abdullah Al Naqbi, Fabio De Lima, Khalil Al Hammadi, Khalfan Mubarak, Tahnoun Al Zaabi, Muhammed Jumah, Yahya Al Ghassani, Caio Canedo, Ali Mabkhout, Sebastian Tagliabue, Zayed Al Ameri

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young