‘London can offer Gulf states expertise for economic diversification,’ Lord Mayor Nicholas Lyons tells Arab News

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Updated 28 February 2023
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‘London can offer Gulf states expertise for economic diversification,’ Lord Mayor Nicholas Lyons tells Arab News

  • Ambassador for City of London and UK’s financial and professional-services sector kicks off Gulf tour on Sunday
  • Nicholas Lyons wants to put UK’s vast pension pot to work in countries such as Saudi Arabia and the UAE

LONDON: London can offer Gulf states the expertise they are looking for as they seek to diversify their economies and showcase their commitment to net zero in the build-up to COP28 in the UAE, the Lord Mayor of the City of London told Arab News prior to his visit to the region.

Nicholas Lyons kicks off his tour of the Gulf on Sunday, looking to expand not only investment into the UK but also assessing ways in which the City of London can put the country’s vast pension pot to work in countries such as Saudi Arabia and the UAE.

“There’s an ongoing, vibrant relationship between the UK and the Gulf. We’ve seen successive lord mayors make trips there, so the relationships that are there are very strong and are held at very senior positions,” he said.

“I expect my trip will relate to fintech, green and sustainable finance, but also a conversation about pension systems because there are a lot of countries that are beginning to look at their pension systems and ask whether or not they’re fit for purpose.”




Britain's Prime Minister Rishi Sunak (C) poses for a picture with City of London Mayor Nicholas Lyons during a banquet in honor of the outgoing mayor on November 28, 2022. (AFP)

Noting that the UK has some £4 trillion ($4.8 trillion) worth of pension assets, Lyons said the Gulf offers opportunities for this money to be deployed more actively, meaning the investment opportunities are not all one way.

He was critical of the way the UK administers its pensions savings, describing the country as “very much underinvested,” with only 7 percent of the pot in productive assets compared to an average of 19 percent for the next seven largest pension pots in the world.

“This money needs to be deployed more actively in productive assets (because) we have the second-largest pension pot in the world, and when you look at places likes Australia and Canada, they’re putting 25-30 percent to work,” he said.




Lord Mayor Nicholas Lyons in New York City. (Supplied)

“We’re very much underinvested in this area. I’d say we’re significantly underinvested and missing a chance, and the fact that Saudi Arabia and the UAE are here (already investing in the UK) is strong corroboration of the opportunities that are there for us.”

Saudi Arabia and the other Gulf states have been pushing heavily to diversify their economies away from hydrocarbons.

Lyons, whose one-year tenure as the 694th Lord Mayor of the City of London began at the end of 2022 — replacing Vincent Keaveny — said he is “very conscious” of London’s reputation as a leading location for asset management and financial services.

 



The City of London financial district, including the Gherkin (C) and the 'Walkie Talkie' (L) is seen from City Hall under a cloudy sky in London. (AFP file)

“The Gulf states are looking at financial services as offering one potential avenue for growth, and there’s real expertise in London on this front that they’re looking to access and discuss — our close relations mean there’s a level of trust to have open discussions,” he said.

“I think as Saudi Arabia looks to develop its financial services, there’s expertise that we can bring to the insurance and pensions industries in Saudi Arabia, with there being other underdeveloped industries that could also benefit from the help of UK companies.”

Financial services are not the only areas of expertise that Lyons will be seeking to talk up. Noting that the UK boasts four of the top 10 and seven of the top 20 universities in the world, he said there will be an emphasis on the innovation taking place in the country.

“With that university quality we’ve built up a very strong entrepreneurial culture, and this is seen in the great early-stage businesses in tech, fintech, life sciences and biotech, with (the UK government’s chief scientific adviser) Sir Patrick Vallance doing great work promoting the country as a science superpower,” Lyons said.




 Skyscraper office blocks, including Tower 42 (L), the Leadenhall Building, commonly called the "Cheesegrater" (C), 30 St Mary Axe commonly called the "Gherkin" (centre R), and 52–54 Lime Street, commonly called the "Scalpel" (R) are pictured from inside the Sky Garden in London. (AFP)

“Countries like Saudi Arabia have recognized the significant investment opportunities here, and have made investments in things like synthetic aviation fuel. And there’s the great work also being done in renewable technologies.”

Talk on technology to address climate change follows the world’s largest economy, the US, having just passed its Inflation Reduction Act, which will pump some $360 billion in subsidies into domestic companies to stimulate growth in renewable technology.

FASTFACT

Nicholas Lyons is the 694th Lord Mayor of the City of London and ambassador for the City and UK's financial and professional services sector.

But Lyons said renewables have become incredibly pressing for Gulf states’ efforts to diversify their economies and play their part in getting to net zero, with Dubai serving as this year’s host of the 28th UN Climate Change Conference.

“It’s really, really important that COP28 is being held in a hydrocarbon economy such as the UAE because it basically confirms that there’s engagement from these countries, that they want to make the transition and want to be part of the global solution,” he said.

“They also bring the particular advantage of having accumulated substantial amounts of money through the sale of these hydrocarbons, and have shown that they’re now keen to redeploy those profits into renewable technologies.




A picture shows Waterloo Bridge over the River Thames in London on October 25, 2020 with the City of London financial district in the background. (AFP)

“I think COP28 will prove to be a very important COP, and I think it will be a very practical one that will look very carefully at both what’s already going on but also at the potential solutions.”

In anticipation of the conference, the City of London — together with the COP Egyptian presidency of 2022 — is hosting its own Net-Zero Delivery Summit, with an eye to holding financial services companies to targets and showcasing the expertise that it can bring to the debate.

That debate, Lyons said, must emphasize a “just” transition that considers that while this is a global problem, it will be necessary to look at it on a “country-by-country” basis, and the path to net zero “won’t be linear.”

He added that during his regional tour, “we’ll be looking very carefully at how the Gulf plans its transition to net zero between now and its target of 2060, but with milestones along the way, including 2030.”

 


Stealth destroyer to be home for 1st hypersonic weapon on a US warship

Updated 5 sec ago
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Stealth destroyer to be home for 1st hypersonic weapon on a US warship

  • The USS Zumwalt is at a Mississippi shipyard where workers have installed missile tubes that replace twin turrets from a gun system that was never activated
The US Navy is transforming a costly flub into a potent weapon with the first shipborne hypersonic weapon, which is being retrofitted aboard the first of its three stealthy destroyers.
The USS Zumwalt is at a Mississippi shipyard where workers have installed missile tubes that replace twin turrets from a gun system that was never activated because it was too expensive. Once the system is complete, the Zumwalt will provide a platform for conducting fast, precision strikes from greater distances, adding to the usefulness of the warship.
“It was a costly blunder but the Navy could take victory from the jaws of defeat here, and get some utility out of them by making them into a hypersonic platform,” said Bryan Clark, a defense analyst at the Hudson Institute.
The US has had several types of hypersonic weapons in development for the past two decades, but recent tests by both Russia and China have added pressure to the US military to hasten their production.
Hypersonic weapons travel beyond Mach 5, five times the speed of sound, with added maneuverability making them harder to shoot down.
Last year, The Washington Post reported that among the documents leaked by former Massachusetts Air National Guard member Jack Teixeira was a defense department briefing that confirmed China had recently tested an intermediate-range hypersonic weapon called the DF-27. While the Pentagon had previously acknowledged the weapon’s development, it had not recognized its testing.
One of the US programs in development and planned for the Zumwalt is “Conventional Prompt Strike.” It would launch like a ballistic missile and then release a hypersonic glide vehicle that would travel at speeds seven to eight times faster than the speed of sound before hitting the target. The weapon system is being developed jointly by the Navy and Army. Each of the Zumwalt-class destroyers would be equipped with four missile tubes, each with three of the missiles for a total of 12 hypersonic weapons per ship.
In choosing the Zumwalt, the Navy is attempting to add to the usefulness of a $7.5 billion warship that is considered by critics to be an expensive mistake despite serving as a test platform for multiple innovations.
The Zumwalt was envisioned as providing land-attack capability with an Advanced Gun System with rocket-assisted projectiles to open the way for Marines to charge ashore. But the system featuring 155 mm guns hidden in stealthy turrets was canceled because each of the rocket-assisted projectiles cost between $800,000 and $1 million.
Despite the stain on its reputation, the three Zumwalt-class destroyers remain the Navy’s most advanced surface warship in terms of new technologies. Those innovations include electric propulsion, an angular shape to minimize radar signature, an unconventional wave-piercing hull, automated fire and damage control and a composite deckhouse that hides radar and other sensors.
The Zumwalt arrived at the Huntington Ingalls Industries shipyard in Pascagoula, Mississippi, in August 2023 and was removed from the water for the complex work of integrating the new weapon system. It is due to be undocked this week in preparation for the next round of tests and its return to the fleet, shipyard spokeswoman Kimberly Aguillard said.
A US hypersonic weapon was successfully tested over the summer and development of the missiles is continuing. The Navy wants to begin testing the system aboard the Zumwalt in 2027 or 2028, according to the Navy.
The US weapon system will come at a steep price. It would cost nearly $18 billion to buy 300 of the weapons and maintain them over 20 years, according to the Congressional Budget Office.
Critics say there is too little bang for the buck.
“This particular missile costs more than a dozen tanks. All it gets you is a precise non-nuclear explosion, some place far far away. Is it really worth the money? The answer is most of the time the missile costs much more than any target you can destroy with it,” said Loren Thompson, a longtime military analyst in Washington, D.C.
But they provide the capability for Navy vessels to strike an enemy from a distance of thousands of kilometers — outside the range of most enemy weapons — and there is no effective defense against them, said retired Navy Rear Adm. Ray Spicer, CEO of the US Naval Institute, a think tank, and former commander of an aircraft carrier strike force.
Conventional missiles that cost less aren’t much of a bargain if they are unable to reach their targets, Spicer said, adding the US military really has no choice but to pursue them.
“The adversary has them. We never want to be outdone,” he said.
The US is accelerating development because hypersonics have been identified as vital to US national security with “survivable and lethal capabilities,” said James Weber, principal director for hypersonics in the Office of the Assistant Secretary of Defense for Critical Technologies.
“Fielding new capabilities that are based on hypersonic technologies is a priority for the defense department to sustain and strengthen our integrated deterrence, and to build enduring advantages,” he said.

Trudeau in Florida to meet Trump as tariff threats loom

Updated 30 November 2024
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Trudeau in Florida to meet Trump as tariff threats loom

  • The unannounced meeting came at the end of a week that has seen Canada as well as Mexico scramble to blunt the impact of Trump’s trade threats

Palm Beach: Canadian Prime Minister Justin Trudeau traveled to Florida on Friday for a dinner with Donald Trump at the president-elect’s Mar-a-Lago estate, as the incoming US leader promised tariffs on Canadian imports.
The unannounced meeting came at the end of a week that has seen Canada as well as Mexico scramble to blunt the impact of Trump’s trade threats, which experts have warned could also hit US consumers hard.
A smiling Trudeau was seen exiting a hotel in West Palm Beach before arriving at Mar-a-Lago, making him the latest high-profile guest of Trump, whose impending second term — which starts in January — is already overshadowing the last few months of President Joe Biden’s administration.
Flight trackers had first spotted a jet broadcasting the prime minister’s callsign making its way to the southern US state. A Canadian government source later told AFP that the two leaders were dining together.
Trump caused panic among some of the biggest US trading partners on Monday when he said he would impose tariffs of 25 percent on Mexican and Canadian imports and 10 percent on goods from China.
He accused the countries of not doing enough to halt the “invasion” of the United States by drugs, “in particular fentanyl,” and undocumented migrants.
Mexican President Claudia Sheinbaum spoke with Trump by phone on Wednesday, though the two leaders’ accounts of the conversation differed drastically.
Trump claimed that Mexico’s left-wing president had “agreed to stop migration through Mexico, and into the United States, effectively closing our Southern Border.”
Sheinbaum later said she had discussed US-supported anti-migration policies that have long been in place in Mexico.
She said that after that, the talks had no longer revolved around the threat of tariff hikes, downplaying the risk of a trade war.
Billions in trade
Biden warned that same day that Trump’s tariff threats could “screw up” Washington’s relationships with Ottawa and Mexico City.
“I think it’s a counterproductive thing to do,” Biden told reporters.
Trudeau did not respond to questions from the media as he returned to his hotel Friday evening after meeting with Trump.
But for Canada, the stakes of any new tariffs are high.
More than three-quarters of Canadian exports, or Can$592.7 billion ($423 billion), went to the United States last year, and nearly two million Canadian jobs are dependent on trade.
A Canadian government source told AFP that Canada is considering possible retaliatory tariffs against the United States.
Some have suggested Trump’s tariff threat may be bluster, or an opening salvo in future trade negotiations. But Trudeau rejected those views when he spoke with reporters earlier in Prince Edward Island province.
“Donald Trump, when he makes statements like that, he plans on carrying them out,” Trudeau said. “There’s no question about it.”
According to the website Flightradar, the Canadian leader’s plane landed at Palm Beach International Airport late Friday afternoon.
Canadian public broadcaster CBC said that Trudeau’s public safety minister, Dominic LeBlanc, was accompanying him on the trip.


US approves $385 million arms sale for Taiwan

Updated 54 min 11 sec ago
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US approves $385 million arms sale for Taiwan

  • United States is bound by law to provide Chinese-claimed Taiwan with the means to defend itself despite the lack of formal diplomatic ties

WASHINGTON. The US State Department has approved the potential sale of spare parts for F-16 jets and radars to Taiwan for an estimated $385 million, the Pentagon said on Friday, a day before Taiwan President Lai Ching-te starts a sensitive Pacific trip.
The United States is bound by law to provide Chinese-claimed Taiwan with the means to defend itself despite the lack of formal diplomatic ties between Washington and Taipei, to the constant anger of Beijing.
Democratically governed Taiwan rejects China’s claims of sovereignty.
China has been stepping up military pressure against Taiwan, including two rounds of war games this year, and security sources have told Reuters that Beijing may hold more to coincide with Lai’s tour of the Pacific, which includes stopovers in Hawaii and Guam, a US territory.
The Pentagon’s Defense Security Cooperation Agency said the sale consisted of $320 million in spare parts and support for F-16 fighters and Active Electronically Scanned Array Radars and related equipment.
The State Department also approved the potential sale to Taiwan of improved mobile subscriber equipment and support for an estimated $65 million, the Pentagon said. The principal contractor for the $65 million sale is General Dynamics.
Last month, the United States announced a potential $2 billion arms sale package to Taiwan, including the delivery for the first time to the island of an advanced air defense missile system battle tested in Ukraine.
Lai leaves for Hawaii on Saturday on what is officially a stopover on the way to Marshall Islands, Tuvalu and Palau, three of the 12 countries that still to have formal diplomatic ties with Taipei. He will also stop over in Guam.
Hawaii and Guam are home to major US military bases.
China on Friday urged the United States to exercise “utmost caution” in its relations with Taiwan.
The State Department said it saw no justification for what it called a private, routine and unofficial transit by Lai to be used as a pretext for provocation.


North Korea’s Kim vows steadfast support for Russia’s war in Ukraine

Updated 30 November 2024
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North Korea’s Kim vows steadfast support for Russia’s war in Ukraine

  • North Korea has sent more than 10,000 troops to Russia and some of them have already begun engaging in combat on the frontlines
  • South Korea, the US and their partners are concerned that Russia could give North Korea advanced weapons technology in return

SEOUL, South Korea: North Korean leader Kim Jong Un vowed his country will “invariably support” Russia’s war in Ukraine as he met Russia’s defense chief, the North’s state media reported Saturday.
A Russia military delegation led by Defense Minister Andrei Belousov arrived in North Korea on Friday, amid growing international concern about the two countries’ expanding cooperation after North Korea sent thousands of troops to Russia last month.
The official Korean Central News Agency said that Kim and Belousov reached “a satisfactory consensus” on boosting strategic partnership and defending each country’s sovereignty, security interests and international justice in the face of the rapidly-changing international security environments in a Friday meeting.
Kim said that North Korea “will invariably support the policy of the Russian Federation to defend its sovereignty and territorial integrity from the imperialists’ moves for hegemony,” KCNA said.
North Korea has supported Russia’s invasion of Ukraine, calling it a defensive response to what both Moscow and Pyongyang call NATO’s “reckless” eastward advance and US-led moves to stamp out Russia’s position as a powerful state.
Kim slammed a US decision earlier in November to let Ukraine strike targets inside Russia with US-supplied longer-range missiles as a direct intervention in the conflict. He called recent Russian strikes on Ukraine “a timely and effective measure” demonstrate Russia’s resolve, KCNA said.
According to US, Ukrainian and South Korean assessments, North Korea has sent more than 10,000 troops to Russia and some of them have already begun engaging in combat on the frontlines. US, South Korean and others say North Korea has also shipped artillery systems, missiles and other conventional weapons to replenish Russia’s exhausted weapons inventory.
Both North Korea and Russia haven’t formally confirmed the North Korean troops’ movements, and have steadfastly denied reports of weapons shipments.
South Korea, the US and their partners are concerned that Russia could give North Korea advanced weapons technology in return, including help to build more powerful nuclear missiles.
Last week, South Korean national security adviser Shin Wonsik told a local SBS TV program that that Seoul assessed that Russia has provided air defense missile systems to North Korea. He said Russia also appeared to have given economic assistance to North Korea and various military technologies, including those needed for the North’s efforts to build a reliable space-based surveillance system.
Belousov also met North Korean Defense Minister No Kwang Chol on Friday. During a dinner banquet later the same day, Belousov said the the two countries’ strategic partnership was crucial to defend their sovereignty from aggression and the arbitrary actions of imperialists, KCNA said.
In June, Kim and Putin signed a treaty requiring both countries to provide immediate military assistance if either is attacked. It’s considered the two countries’ biggest defense deal since the end of the Cold War.


Blast at Kosovo canal feeding key power plants a ‘terrorist attack’, says prime minister

Updated 30 November 2024
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Blast at Kosovo canal feeding key power plants a ‘terrorist attack’, says prime minister

  • “The attack was carried out by professionals. We believe it comes from gangs directed by Serbia,” says Prime Minister Albin Kurti
  • Animosity between ethnic Albanian-majority Kosovo and Serbia has persisted since the end of the war between Serbian forces and ethnic Albanian insurgents in the late 1990s

 

PRISTINA: An explosion on Friday damaged a canal supplying water to Kosovo’s two main coal-fired power plants, Prime Minister Albin Kurti said, blaming a “terrorist attack” by neighboring Serbia.
“This is a criminal and terrorist attack aimed at damaging our critical infrastructure,” Kurti told a press conference late Friday.
“The attack was carried out by professionals. We believe it comes from gangs directed by Serbia,” he added without providing any evidence.
The blast occurred near the town of Zubin Potok in the country’s troubled north, damaging a canal supplying water to cooling systems at two power plants that generate most of Kosovo’s electricity.
Kurti gave no details about the extent of the damage, but said if it was not repaired part of Kosovo could be without electricity as soon as Saturday morning.
Pictures from the scene published by local media showed water leaking heavily from one side of the reinforced canal, which runs from the Serb-majority north of Kosovo to the capital Pristina and also supplies drinking water.

The United States strongly condemned the “attack on critical infrastructure in Kosovo,” the US embassy in Pristina said in a statement on Facebook.
“We are monitoring the situation closely... and have offered our full support to the government of Kosovo to ensure that those responsible for this criminal attack are identified and held accountable.”
Animosity between ethnic Albanian-majority Kosovo and Serbia has persisted since the end of the war between Serbian forces and ethnic Albanian insurgents in the late 1990s.
Kosovo declared independence in 2008, a move that Serbia has refused to acknowledge.
Kurti’s government has for months sought to dismantle a parallel system of social services and political offices backed by Belgrade to serve Kosovo’s Serbs.
Friday’s attack came after a series of violent incidents in northern Kosovo, including the hurling of hand grenades at a municipal building and a police station earlier this week.
AFP has contacted the Serbian government for comment.