The UK & the Middle East - why do they matter to each other?
The recent news
that Qatar has signed for the purchase of 24 Eurofighter Typhoon aircraft from
the UK is a welcome piece of good news. It represents a significant defence
contract in Qatar, and is a tangible symbol of the UK reaping the reward for
its sustained re-engagement in the Gulf since 2010.
Following the
UK withdrawal in 1973, official policy was to have a non-permanent military
presence in the region, and no bases or other long-term infrastructure were
formally sanctioned. This led to the mildly odd position that while the region
was one of the busiest for the UK operationally, these tasks were funded and
looked at as discrete operations, and funded accordingly, and not as part of a
coherent longer-term presence.
There was a
clear perception by many Gulf states that the UK was losing interest in the
region, and that it saw its interests as lying closer to home -a relationship
that reached its nadir under the Brown government, where hardly any Ministers
visited or engaged with their Gulf counterparts. During the same time the US,
France and other nations were quietly ramping up their visits and presence,
while UK officials and industry reported back in terms of ever greater
frustration the sense of bewilderment felt by Gulf nations and leaders whose
instinct was to turn to the UK, but felt abandoned by them.
Since 2010
there has been a step change in engagement with the region, with a vast
increase in visits by Ministers, bilateral talks and a regular through flow of
senior officials and Parliamentarians into all the countries to re-engage,
rebuild strained relationships and seek to open the door to future UK
opportunities.
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The historial presence - Mespotamia |
Today the UK
finds itself in a significantly stronger position in the region, with military
forces permanently based in every Gulf state, albeit in varying levels, a
significantly stronger trading and investment relationship and a sense that to
the rulers in the region, the UK is ‘back’. We are now starting to see the
dividends of this sustained investment in relationships, and the hope must be
that this is the start of a new era for the UK in the region.
Why Does the
Gulf Matter to the UK?
To Humphrey, in
very broad terms the Gulf matters to the UK for three key strategic reasons:
a.
The
presence of three of the worlds great maritime Chokepoints.
b.
The
presence of regional security challenges that if left unchecked threaten UK and
allied security.
c.
The
opportunity to invest in, and work with growing economies for mutual benefit
The three great
maritime chokepoints are the Suez Canal, the Bab-Al-Mendab straits and the
Straits of Hormuz. It is essential for long term UK security that these are
kept open and secure for mercantile traffic – a sustained closure would wreak
enormous damage to the UK economy.
Simply put an
enormous amount of goods shipped to the UK, plus almost all of its Liquid
Natural Gas and other energy supplies must transit at least two, often three,
of those chokepoints in order to reach the UK. The ships, be they LNG carriers
or major container ships work to tight deadlines to support the global markets.
A failure to get a series of shipments carrying electronic goods and toys into
Southampton could reduce supplies for local shops, potentially ruining their
Christmas trading periods and doing economic damage. A failure to keep the flow
of LNG tankers sailing would lead to the energy supply in the UK being
threatened, to the extent that the lights may go out. The ability to have a
warm happy Christmas in the Midlands depends on merchant ships being able to
sail without hindrance through the Southern Red Sea.
There are an
enormous number of regional security challenges, not just in the Gulf but more
widely that have the impact to destabilise UK security. There remain enormous
tensions in the relationship with Iran, whose activities threaten regional
stability – particularly in civil wars in the Yemen and Syria, and whose
activities at sea in the Gulf pose a credible risk to shipping. A misjudged
Iranian response could do real harm to securing UK energy supplies were the
Straits of Hormuz to be even temporarily closed.
More widely the
Gulf sits adjacent to the Horn of Africa – currently the scene of untold
suffering and devastation as a combination of civil wars, famine and natural
disaster is leading to population migration on an enormous scale. Instability
in the Horn leads to people movements into Yemen, resource depletion as fishing
increases and piracy as desperate people seek any way possible to find money
for food. The impact on the UK economy is felt when insurance prices rise to
cover risks from piracy and organised crime, which helps rise product costs.
The wider instability is felt in terms of states teetering on the brink of
collapse, and the need to prevent vacuums emerging which can be exploited by
terrorist organisations as a safe space to prepare for attacks on the UK or its
allies.
Finally, the
Gulf matters because it has enormous cash resources to invest, and a workforce
that is growing in size. There are tremendous opportunities for UK industries
to invest and build long term partnerships with many countries locally – who in
turn are seeking means to generate jobs for a growing population of angry, and
often increasingly radicalised youth. Investing in opportunities, bringing jobs
to those who need them and working together to secure a positive future helps
build chances for UK industry, stabilises nations from risk of insurrection and
helps keep the region open for opportunity.
e |
How does the UK
matter to the Gulf?
To the Gulf nations
the UK represents a credible long-term partner whose support matters. This is
borne out in three key ways:
a.
Providing
military advice, support and defence
b.
Acting
as a voice to represent their interests with third parties
c.
Providing
access to investment opportunities.
The UK is seen as
a nation who can deploy credible military capability to act as a guarantor of
security in a crisis. Most Gulf nations recognise that in isolation they cannot
defend themselves against an external threat (usually Iran), and rely on the
presence of allies to serve as a visible deterrent. The message is clear –
invade us, attack us and you run the risk of war with the UK (and other
allies).
The visible
presence of UK assets on either a permanent or high profile temporary basis is
keenly sought after. For many years after the 1973 withdrawal the Gulf states
sought a return to a permanent presence, not for a specific operation, but as a
more general deterrent. The ability of the UK to bring a highly capable force
in to theatre, sustain it and employ it effectively is also crucial. The Gulf
nations know that the UK is prepared to employ force if required – the same
cannot be said of every nation, so they are keen to work with the ones that
matter.
Similarly, the UK
is seen as having a moderating influence and ability to positively message Gulf
interests with third parties. The level of access enjoyed in Washington DC or
with EU partners is noted and seen as having real value. Being able to
represent your interests to Washington, while getting other partners like the
UK who are listened to in order to make the same case is crucial. The UK
matters to the Gulf because it has access, influence and an ability to persuade
others to deliver.
The UK is also
valued because it is far more conciliatory and respectful than some larger
countries. The UK approach of discretely raising issues of concern, not
publicly ‘naming and shaming’ goes down well too. There is also a sense that
when dealing with London, it is as an equal and not a supplicant.
Finally, the UK
matters because it represents a safe haven for investing capital to make
greater profits, and has a range of industries that can equally invest in the
Gulf. To that end it is worth viewing major arms deals, such as the Qatari
Typhoon deal, through the prism of being an economic investment to upskill the
workforce and get high tech investment into the region. What Gulf Nations want
is the means to build up employment for their people in order to reduce long
term tensions, and make their nations credible in the post oil industry world.
Look for instance at the Saudi Arabian vision 2030 – a keynote document setting
out how the Kingdom proposes to develop further. The UK matters in this because
of the industrial potential to invest and develop these countries.
What is the Defence Relationship like?
Today the UK has a
permanent military presence in every Gulf Nation. This in broad terms breaks
down as follows:
Country
|
Presence
|
Bahrain
|
UKMCC 1* HQ, 4 x MCMV and 1
x LSD(A),
|
Kuwait
|
British Military Advisory
Training Team (1* lead, approx. 40 staff)
|
Kingdom of Saudi Arabia
|
Training Teams
(tri-service), exchange officers (at up to 1* level) in Saudi National Guard,
support to delivery of Air Force projects (at up to 3* level)
|
Oman
|
Duqm – small logistics
presence, plans to establish Regional Land Training Hub (Army training
centre), large group of loan service personnel (approx 100 at up to 2*
level),
|
Qatar
|
UKACC 1* HQ, use of Al
Udeid airbase for aircraft operations (83 EAG), exchange officers
|
United Arab Emirates
|
Substantial RAF Presence at
Al Minhad to support wider UK middle east operations, exchange personnel and
loan service officers.
|
Underpinning this
physical presence is a regular and varied series of exercises in the region
ranging from low level training, such as between the Royal Marines and the
Bahrainis, up to the large scale – like operating with the Saudis in the Red
Sea, or Exercise Saif Sarea which is held with Oman. There are also a wide
number of units passing through, or operating in the region which make use of
these facilities.
In practical terms
the UK has the single greatest foreign military presence in the region after
the USA. It is dispersed and often not widely promoted, but the breadth of
places where UK personnel will be found is quite astonishing. It sends a clear
message to the region that the UK is committed to their defence.
Having a permanent
presence, even in the form of low level attaches and exchange officers helps
facilitate door opening in a crisis. Anyone who has worked in the region for a
while is familiar with the need to cultivate relationships and know whose
mobile phone number really matters, and when wasta is needed. Maintaining
personnel across the region helps build networks, access and influence with
senior decision makers, whose approval can be critical when overflights are
needed, or a ship is required to dock urgently. There is enormous intangible
benefits accrued from having people who know the system, know who to call and
know who to call in a favour with in a crisis.
More widely the UK
benefits by being able to build longer term relationships that make the case
for defence and security exports. Letting nations work with equipment, see how
good the UK set up is and help them understand the potential offered by
airframes such as Typhoon is a great way to build the case for sales. It is a
slow business and not one rewarded by an instant response, but a steady level
of engagement by military personnel helps support UK economic security.
On a practical
level, having good close interaction and working together means it is possible
to have difficult conversations. The ongoing civil war in Yemen is an example
where the UK has been able to speak candidly and provide advice to steer things
to an appropriate solution, but in a manner which respects the host nation.
Understanding the Middle Eastern culture is important – it is better to work to
solve problems together, than taking a moral high ground stand, being isolated
and then not getting the meetings or access needed to lobby for change. The UK can
have these conversations, rather than being isolated and unable to influence
change for the better. To walk away from these export opportunities for the
sake of the moral high ground merely means that instead Russia or China will
fill the void.
What are the
future challenges?
As the UK looks to
the future, the challenge is to not get complacent. Seven years of sustained
engagement is now starting to bear fruit, but this is the beginning and not the
end of the process. The challenge in Qatar will be to continue to engage with,
and work alongside the Qataris for the medium term and not walk away now that
the deal is signed.
Developing the
relationship in a manner which meets the dual Gulf requirements of buying
security by economically tying the UK into the nation, but also upskills the
workforce will be challenging. As the UK defence industry evolves into offering
more multi-national solutions for aerospace products, the opportunity for big
deals like the Saudi Project of the 1980s diminishes. The future offer may have
to rely on a mix of UK defence engagement to win major contracts for the
private sector in areas like construction, cyber security or health. The UK
will have to work effectively, leveraging its capabilities across government to
win business.
The Gulf Nations
will be looking for commitment and presence to support their long-term
development goals – if the UK adopts a series of silos, whereby defence plays
no involvement in efforts to win a health contract, then the opportunities for
the UK diminish. Ensuring planners in Main Building understand that scrapping
an exercise could impact on a UK education sector bid losing and causing jobs
to be lost is essential – the future must be a coherent cross government
approach to the region.
For the UK the
challenge is to ensure continued access and stability. On a practical level the
current generation of rulers are aging and while well disposed of to the UK,
the views of their (many) potential successors are perhaps less well
understood. The next generation will not have the same view of the UK – it will
be positive, but different. There will be no sense of a ‘blood debt’, and
access will be granted by our current actions, not past deeds.
The growing
presence of foreign nations in the region also poses a challenge. For the UK
ensuring the security of the three chokepoints is essential to our long term
strategic interests. Yet in the Red Sea, the potential already exists to see
Russian, Chinese and Iranian naval bases established between Suez and the BAM.
There is a real threat that the long term assured access of the Royal Navy,
allies and merchant traffic to the Red Sea can no longer be taken for granted
in future. It may be the case that to get to the Gulf, we must be prepared to
fight our way in.
The Gulf is the
region where the UK is most likely to deploy a full formed military package in
future – for all the aspiration of doing more in the Far East, the Middle East
and Indian Ocean will represent the main area of commitments. The USA seems to be shifting its force posture
ever more East, meaning that the UK will be expected to use QUEEN ELIZABETH as
the carrier for the region – one reason the USA was so supportive during the
‘carrier gap’ was the quid pro quo that QEC would ease the pressure on their
own carrier deployment cycles.
The next 10-20
years pose an enormous set of challenges and opportunities for the UK in the
region. There are huge security challenges that must be overcome – just dealing
with the legacy of Yemen will take years to rebuild and recreate a broadly
functional society. The potential for full on state collapse and human
catastrophe in East Africa and the ensuing impact on the Gulf cannot be forgotten
either. This is without considering what may happen in the relationship with
Iran and how this evolves over time.
Added to this is
the complexity that new players are emerging in the region. The UK has a
privileged position now, but Russia is increasingly present as an arms dealer
(Bahrain declared 2017 to be the year of Russia) and as western human rights
lobbying reduces arms exports, will likely step up its physical sale of
equipment and presence – although this is unlikely to result in permanent
bases.
China too is far
more present in the area, with their counter piracy task force based near Yemen
now entering the Gulf more regularly, and slowly expanding relationships which
in turn may see increased efforts to win influence from the West. Chinese
interests align with the UK in some ways – with both nations needing the three
chokepoints to remain open, but China will be keen to win export business
(particularly for drones and advanced fighters) where possible.
This is a complex challenging
region where small actions by tactical players, like a suicide bomber in a
boat, an angry fisherman waving an AK47 to scare away a ship, or presence of
mines in coastal waters can have massive strategic repercussions. The UK needs
to be present to advise our allies, provide niche capabilities where required
to support and be ready to take action to ensure our long term strategic interests
are protected.
Without doubt the Middle
East is on the cusp of major changes, and the UK needs to be able to respond to
them, using both traditional and new methods to ensure its three core strategic
goals are protected, while reassuring our long-standing friends and allies of
our enduring commitment to protecting them. This requires a truly strategic approach
over decades, not years, and a willingness to invest and not take short term ‘in
year savings measures’ to save thousands at the cost of millions in lost business.
The Middle East more than anywhere else shows the need for truly joined up
Government.
Informed comment. Nicely done.
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ReplyDeleteWe Facilitate Bank Guarantee (BG) & Standby Letter of Credit (SBLC) Instrument Direct Mandate Provider of Fresh Cut Bank Instrument for Lease/Purchase such as BG, SBLC, MTN.
Intermediaries/Consultants/Brokers are welcome to bring their clients and are 100% protected We are direct to a provider for BG /SBLC Issuance by HSBC London/Hong Kong or any other AA rated Bank in Europe, Middle East or USA.
Our BG/SBLC Financing can help you get your project funded, loan financing by providing you with yearly renewable leased bank instruments. We work directly with issuing bank lease providers, this Instrument can be monetized on your behalf for 100% funding: For further details contact us with the below information.
email:kfaiztrippleainstrument.uk@gmail.com
Skype: d65e4bb0261e5ece
Dear Sir,
ReplyDeleteI am a direct Mandate to a genuinely renowned Investment Finance Company offering Cash & Asset Backed Financial Instruments on Lease and Sale at the best rates and with the most feasible procedures.
Instruments offered can be put in all forms of trade and can be monetized or discounted for direct funding. For Inquiry contact.
Email: longmornprojectfinances@gmail.com
Skype: longmornprojectfinance@hotmail.com
Whatsapp : +1(661)262-9225
Warm Regards,
Simon Federman.
GENUINE BANK GUARANTEE (BG) AND STANDBY LETTER OF CREDIT (SBLC) FOR LEASE AT THE LOWEST RATES AVAILABLE. OTHER FINANCIAL INSTRUMENTS SUCH AS MTN, CD, DLC, PB ARE ALSO AVAILABLE. Dear Sir/Ma I am direct to a provider who has recently issued banking instruments for a couple of my clients the provider is 100% check-able you can do your due diligence on them. I personally know the provider. Our instruments are only from triple 'a' rated banks and we issue from $1M to $5B . The provider is 100% verifiable. If you are genuinely seeking bank instruments. Contact me and i will furnish you with details. And again our bank instruments can serves as collateral as the case may be, which will enable you get loans from your bank so as to embark on any projects such as Aviation, Agriculture, Petroleum, Mining, Telecommunication, Construction of Dams, Real estate, Bridges, Trading, Importing and exporting and Other Turnkey Project (s) etc. Also these instruments can be put in PPP, etc. Please do let me know of your willingness to proceed and I will email you our terms and condition upon request.Inquiries from agents/ brokers/ intermediaries are also welcome. If you are interested in seeking to raise finance for your business/projects in this way,
ReplyDeleteEmail: goldencrow59@gmail.com
Skype:goldencrow59@gmail.com
ReplyDeleteDear Sir/Ma We are broker firm in London-UK, we have direct Provider of BG/SBLC specifically for Lease and purchase, The provider is tested and trusted. We have been dealing with the company for paste 20 years. Interested Agent/Lessee should contact us.
Email: globalcapitalasset@gmail.com
Skype: Kevinreyes1972@outlook.com
WHATAPP NUMBER :+1 650 741 1097
Regards,
Kevin Reyes
We are direct providers of Fresh Cut BG, SBLC and MTN which are specifically for lease/sales, our bank instrument can be engage in PPP Trading, Discounting, signature project(s) such as Aviation, Agriculture, Petroleum, Telecommunication, construction of Dams, Bridges, Real Estate and all kind of projects. We do not have any broker chain in our offer or get involved in chauffeur driven offers. We deliver with time and precision as sethforth in the agreement. Our terms and Conditions are reasonable, below is our instrument description. The procedure is very simple; the instrument will be reserved on euro clear to be verified by your bank, after verification an arrangement will be made for necessary bank documents and stock testing expenses, the cost of the Bank Guarantee/Standby Letter of Credit will be paid after the delivery of the MT760, Description OF INSTRUMENTS: 1. Instrument: Bank Guarantee (BG/SBLC) 2. Total Face Value: Eur/USD 5M MIN and Eur/USD 10B MAX (Ten Billion EURO/USD). 3. Issuing Bank: HSBC Bank London, Barclay's bank London,Credit Suisse and Deutsche Bank Frankfurt. 4. Age: One Year, One Month 5. Purchasing Price: 32% of face value plus 2% commission fees Leasing Price: 4% of Face Value plus 1% commission fees. 6. Delivery: Bank to Bank swift. 7. Payment: MT-103 or MT760 8. Hard Copy: Bonded Courier within 7 banking days. We are ready to close leasing/Buying with any interested client in few banking days, if interested do not hesitate to contact me Name : PAUL DAVID Email: pauldavid20001@gmail.com Skype: P_david123@outlook.com whatsapp:+447921551354
ReplyDelete