Syria and the Middle East

Lord Sheikh Excerpts

Monday 1st July 2013 Lords Chamber

[Lord Sheikh]

My Lords, I welcome this debate but I am extremely regretful of the circumstances that have triggered our discussions. I thank my noble friend the Minister for introducing the debate.

Today we are focusing on the Middle East as a region but there is no doubt that the appalling situation in Syria is currently taking centre stage. I am horrified on a daily basis at the news reports of both the escalating conflict and, more importantly, the humanitarian crisis resulting from it. Tensions were high at the initial outbreak of violent protests in 2011 but few could have predicted that two years later 93,000 people would have lost their lives and that the death rate would still be accelerating.

The potential for a large regional sectarian war between Sunni and Shia Muslims is now dangerously high and the bloodshed and political divide could spiral even further out of control. I am very worried about the rift between the Sunnis and Shias, which unfortunately is growing. As a Muslim, this disturbs me, but I feel that everyone should be concerned about how the situation is developing.

I share the wider desire to see President Assad’s regime brought to an end, and was excited at the increasing prospect of such an outcome late last year. About three years ago I visited Syria with other parliamentarians and we spoke to President Assad at some length. He seemed a reasonable man at that time but his attitude and behaviour are now totally unacceptable.

However, as we should have learnt so very well by now, true victory will not be won for the people of Syria, or indeed any country, if the overthrowing of evil is not accompanied by a good and stable substitution. I know that many colleagues share my concerns at the rather fragmented make-up of what we sweepingly refer to as the “opposition forces”. I appreciate the efforts made with the formation of the national coalition last year, but we must acknowledge that the coalition is beset by its own problems, perhaps most notably the resignation of its own leader in March, and remains generally fractious and divided. It is also unable to assert proper command over many of the rebel groups and has been unable to develop or offer any substantial support in respect of the humanitarian crisis.

What I find of great concern is that its principle is not to engage in any dialogue or negotiations with the regime. In reality, this illustrates a continued desire to fight this battle through sheer physical force, despite the incalculable pain and suffering that the conflict has already caused to millions of people. While I abhor the grotesque practices and governance of President Assad, I also find myself unable fully to support a group which exists by this philosophy.

With the coalition’s ideologies for the future of Syria so varied, in some cases even contradictory, and with no will to engage in negotiation with its enemies, it simply cannot be right for us or any other country to pledge unyielding support to it in the wider sense unless the various factions can get together and be a more cohesive force.

I am very supportive of the non-lethal assistance that we have so far provided. Such technical advice, training and basic equipment will help the opposition forces better to protect themselves and other civilians. I was pleased to hear the Prime Minister commit to doubling this assistance by the end of this year.

However, the decision that some are calling for—for us to put our own powerful weapons, designed to cause maximum damage and often death, in the hands of people lacking a true unified ideology—carries with it many concerns. It would be dangerous, costly and, frankly, a substantial risk to both the Syrian people and the opposition members themselves.

We also cannot be sure where such weapons will actually end up once distributed on the ground. I know that the Foreign Secretary has made it clear that, if arms were provided, they would not be allowed to fall into the hands of extremists, but I would like a little further clarity on exactly how we can guarantee such a claim.

In addition, we must consider what will happen to such arms when the conflict finally comes to an end, whatever the outcome. One has only to cast one’s mind back to the Libyan crisis and the subsequent, exhaustive efforts made by the West in sourcing and retrieving the plethora of weapons that were lost in the post-war chaos. Supplying arms would seem to be a slightly contradictory move, in that it poses a threat to the very long-term stability that some believe we can achieve by arming the rebels in the first place. We are making these decisions in the interests not just of the conflict’s outcome but also of the safety and security of the Syrian people, who continue to suffer so greatly.

In May this year, I was privileged to be invited by His Majesty King Abdullah II of Jordan to visit his country with a party of British politicians. Back in April and before our visit, I spoke briefly in your Lordships’ House on the subject of refugees fleeing Syria, in particular those who have crossed the border into Jordan and are now settling there. I should like to make a reference to this once more.

During our five days in Jordan, our delegation had the opportunity to discuss many of the political, social and financial challenges facing that country. One of the most significant impressions that we were all left with was that of the plight of refugees fleeing across the border from Syria. About 400,000 Syrian refugees have fled to Jordan and, of those, nearly half arrived in the first quarter of this year.

As the crisis in Syria deepens, the pressure on neighbouring countries such as Jordan becomes ever harder to address. For example, Jordan anticipates a large number of Syrians seeking refuge there during the remainder of this year. Refugees in dedicated camps, as I was able to witness during my visit, are being well looked after and cared for in the circumstances. The Zaatari camp alone provides home for 140,000 refugees, and the total refugee population at present makes up about 6% of the entire Jordanian population. The situation will be aggravated by the influx of other refugees.

Jordan is a country which has experienced a slowdown in economic growth, and its budget deficit is already creating a challenge. Jordan’s ability to address that fiscal issue is hampered by the chaos in Syria; it needs more help to address the costs of the crisis.

In the medium term, there are also grave implications for public services in Jordan. Jordan is allowing Syrian children to register in schools at no cost, and 80 new schools are anticipated to be needed in the coming year. Similar pressures are to be found in healthcare: there is a crisis of resources and hospital expansions will be necessary to provide for the needs of a growing refugee population.

Last year, the crisis cost Jordan about $251 million. The cost this year is projected to be a staggering $851 million. Jordan is an impressive country, but it is finding it difficult to cope with the situation, and there are severe pressures inflicted on the country. As an international community, we have a duty to see that more should be done so that the costs are not born by Syria’s neighbours alone.

The UK is one of the largest bilateral donors to the Syrian crisis. We have provided £171 million on vital assistance for refugees who have fled the Assad regime. That includes £26 million for support to Jordan. The Prime Minister announced at the recent G8 conference that further amounts will be provided. Our funding is providing food, as well as clean drinking water. The UK has also provided clinical care and counselling to the refugees. I commend our Government for the valuable support and help that we have provided and continue to provide to the countries affected by the Syrian crisis.

It is clear that a long-term solution to the conflict is some way off. The Government are to be congratulated for what they have done to seek to engage diplomatic pressure for an effective international response. The Secretary of State has shown real leadership and the Prime Minister has worked really hard.

I welcome the Government’s efforts to achieve peace and bring various parties to the negotiating table. I hope that we will see the proposed Geneva II conference taking place. In my opinion, the only solution will be a properly negotiated political settlement, one that involves Russia and, if possible, Iran. Only by bringing the interests of everyone to the table will we be able to make progress that is comprehensive enough to make a difference that will actually endure.

I feel that military action alone will not resolve the crisis in Syria. I also fear that if we increase military support to the opposition forces, Russia will augment its support to President Assad, and the crisis will spiral further. Different parties must talk to one another and arrive at an acceptable solution. We achieved the right results in Libya by military intervention, but circumstances are very different in Syria. We would of course all like to see a freer, more accountable Middle East with Governments who are more democratic and engaging with their people.

Morocco

Lord Sheikh Excerpts

Thursday 27th June 2013 Grand Committee

[Lord Sheikh]

My Lords, at the outset I thank the noble Lord, Lord Harrison, for arranging this debate. The United Kingdom and Morocco enjoy a long and happy history—a heritage of which I believe we should be proud. Earlier this month, the British Embassy in Rabat celebrated the 800th anniversary of diplomatic relations between our two countries, a point made earlier by the noble Lord, Lord Harrison. In April this year the Moroccan Minister of Foreign Affairs made his first official ministerial visit to London. An estimated half a million British tourists travel to Morocco every year to take advantage of its outstanding natural beauty and renowned hospitality. This tourism helps maintain our relationship, and Morocco is economically dependent on it.

I believe that the recent social revolutions across north Africa and the Middle East, coupled with the economic turmoil across much of the western world, present an opportunity to look again at our priorities. It is a chance to refocus where we should be looking to build stronger bridges for the future and dedicating more of our efforts. I firmly believe that Morocco should be one of the countries we should focus on, and with good reason. Like some other countries in the Arab world, Morocco is engaging in fundamental democratic reforms. While it remains essentially a kingdom, a new constitution was adopted in July 2011 establishing a more democratic system of governance. A key political change is that the majority party in Parliament, rather than the King, now has the right to nominate the Prime Minister. Strong human rights provisions were also included in the reforms, although I appreciate they have had mixed results.

Last September, the United Nations special rapporteur on torture, Juan Mendez, reported his findings following a visit to Morocco. He was concerned at the continued use of cruel treatment by some security forces on the ground and in prisons. However, he also noted that the general situation regarding the practice of torture has improved and that a culture of human rights, with a genuine political will, is slowly emerging. Morocco has implemented a National Human Rights Council and announced that it will ratify the optional protocol of the UN convention against torture later this year. In recent years, further rights have been granted to women and the King has also stated that tackling unemployment and poverty are two of his main priorities. Unemployment has shrunk significantly over the past decade and spending on social programmes and subsidies have increased substantially.

In all, it seems as if this new constitution is laying the groundwork for introducing laws that will build greater levels of engagement with and transparency towards the general public. It is important we recognise how the conviction that fuels such reforms can spread across borders, calm tensions and set examples for others. These measures are a beacon of hope in an ever insecure region. Can the Minister highlight the role that Morocco has taken in promoting or contributing to regional stability?

Our Foreign Secretary recently reaffirmed his support for the progress that Morocco has been making towards implementing the new constitution, particularly through the Arab partnership, with efforts to tackle corruption and encourage political participation. I very much share this sentiment and, on that note, I would be grateful if the Minister could also provide details of any programmes that we are supporting in Morocco through civil society.

Our relations with Morocco can be enhanced further by undertaking more trade. As I have stated many times before in your Lordships’ House, one of the keys to building and advancing successful relationships between countries is by having increased levels of trade. Such trade allows for increased diversity and consistency of goods and services, leading to the widening and opening up of markets. This in turn nurtures cultural and technological exchange and helps bring countries closer together, benefiting economies on both sides. Indeed, 2012 was a landmark year, as the bilateral trade between our two countries passed £1 billion for the first time. Despite suffering a setback, Morocco’s GDP growth rate in 2012 was 2.9%, which is a respectable figure within the context of the global downturn and higher than that of many western countries. It is also projected to accelerate to an average of 4.8% over the next few years.

Morocco boasts a number of economic achievements that have, unfortunately, gone unnoticed and to which we should be paying much closer attention. Last year, it built the largest port in the Mediterranean, Tanger-Med—again, this is a point made by the noble Lord, Lord Harrison—as a strategic way of capitalising on its geographical position as a primary gateway between Europe and Africa. It is also establishing itself as a hub for international investors looking to get into Africa, with the creation of Casablanca Finance City. Morocco also enjoys free trade access to 55 different countries, representing more than 1 billion consumers and 60% of the world’s GDP. Bearing all these points in mind, it is no surprise that Ernst & Young recently ranked Morocco as the second most attractive African country for foreign investors.

I spoke last month in the Queen’s Speech debate on the importance of the UK investing in Africa. We must act now, before other countries beat us to it.

EU: Prime Minister’s Speech

Lord Sheikh Excerpts

Thursday 31st January 2013 Lords Chamber

[Lord Sheikh]

My Lords, as a man who conducts business and addresses conferences overseas, many of the arguments on European integration resonate very strongly with me. The European Union was established as a way of preserving peace and stability between its member states. It was what was needed then, and in the same way we must now react to internal and external changes that are happening in Europe and the world.

This is not about the interests of the United Kingdom versus the interests of other member states; it is about achieving large-scale reform to change the relationship between member states and the rest of the world in everyone’s interests. Europe needs to serve its member states better and help them to get the most out of the benefits that such a union provides.

The Prime Minister was very clear that he wants Europe to be a success and as such wants us to be a part of that success, and I share that sentiment. Europe itself is changing and we must push to make sure that it properly adapts. The completion of the single market was one of the key aims to which the Prime Minister referred, and rightfully so. This provides a strong foundational framework on which member states can build their economies.

We must allow the diversity of the different EU economies to flourish to increase competitiveness and achieve growth. Bureaucratic red-tape policies must be returned to the UK so that we can make our own judgments based on what works best for business here at home. I also agree with strengthening the role of national parliaments within the EU, as they are without a doubt the most democratically accountable and legitimate form of governance to their people.

Laws and regulations have been heaped on to British families and businesses from a foreign land, in a Parliament that they did not elect, and with a one-size-fits-all mentality. That is why I support the decision to hold a referendum in the next Parliament. People can then decide for themselves what will be in the best interests of their own country, and the integrity of the resulting decision cannot be questioned.

I also believe that the vast majority of people in this country would like us to remain in a union that helps us when we need it, allowing us to take good things from it but without inflicting unwanted repressive policies on its member states.

It is the job of the Government to get the best deal for their people, and this is exactly what the Prime Minister wants to do in negotiating a new settlement. It also makes sense to wait until the current turbulent waters have calmed before deciding what the future would hold for us in the union. Allowing member states the autonomy and liberty to do what is best for their people and their economies will enable us to contribute that much more and, I believe, form an even stronger bond of shared values and co-operation. I say this as a Conservative and ultimately as a supporter of the future of the European Union.

Ugandan Asians

Lord Sheikh Excerpts

Thursday 6th December 2012 Lords Chamber

[Lord Sheikh]

My Lords, I am extremely thankful for the opportunity to speak in this debate, and I am most grateful to my noble friend Lord Popat for calling it and for his excellent speech. That is not least because members of my family were among the 28,000 Ugandan Asians who came to the United Kingdom in the 1970s. Thus, the personal resonance of this subject for me holds no bounds.

I also believe that this 40th anniversary provides us with an opportunity properly to reflect on just how significant a part this movement has played in the cultural and social development of the UK, and how much better off we all are because of it. Ultimately, the UK gave asylum to around half of those exiled from Uganda, including many from a cross-section of different religions. Such a considerable and complex movement of people brings with it personal stories of triumph and turmoil.

My father originally came to Uganda in the 1920s and quickly carved out a name for himself in a wide range of industries including cotton, hides and skins, coffee and property. He was president of the Indian association in our home town for more than 30 years and represented all the communities of Asian origin. He also helped to pioneer the Ugandan education system, benefiting thousands of children. He can be described as a man of vision, an entrepreneur and a philanthropist. He died in the 1960s, before my family were expelled the following decade, but I had already learnt much that has inspired me to do well in this country.

I brought that hunger and enthusiasm with me when I came to this country. This culture is typical of many other Asians who came here from Uganda. Although the ancestors many of the Indian families were originally brought over in the 19th century to help build the railway system, they had since become successful in businesses and professions. The community prospered in every walk of life. By the 1970s, they were the backbone of Ugandan economy. There was peace and harmony between people of various religions and racial origins in Uganda. When the Asians were expelled, their properties, businesses and almost everything else was taken from them by Idi Amin and his Government. As such, they arrived on British shores completely penniless. General Amin took everything from us except our knowledge and what we had in our heads.

I think that I speak for most, if not all, of those who came to this country during this time when I express my gratitude for Prime Minister Edward Heath’s honourable decision to allow those of us with British passports to settle here. Others went to places such as Canada, Australia and Europe, but I am grateful that my family was able to come and enjoy the opportunities that the UK provided to us and thousands of others. Upon their arrival, many Ugandan Asians were able to open corner shops and other small family businesses that proved to be highly successful in serving the needs of local communities. Many of them also took jobs in various sectors. This provided them with a solid base on which to raise their families and rebuild their lives.

The children of those families have since grown up and been educated here in the UK, serving only to advance their family lines through the high quality of learning that we so celebrate in this country. While some have taken over the family corner shop or followed in their mother’s or father’s footsteps, others have moved into different professions that in many cases were not accessible to their parents.

Today, the sons and daughters of Ugandan Asians are visible in every walk of life, from medicine to banking and from writing to manufacturing. They make valuable contributions to our workforce, pay their taxes and help us to compete on the international stage. It should also be noted that the crime rate among this community is very low. Their influence can even be felt in this very House; I know that my colleagues, the noble Lord, Lord Popat, and the noble Baroness, Lady Vadera, share my proud heritage, as do Shailesh Vara and Priti Patel in the House of Commons.

Perhaps the most notable example of where Ugandan Asians have thrived as a community is in Leicester and in the London Borough of Harrow, where, despite much resistance at the time, a number of the immigrants chose to settle. In the short term they helped to breathe new life into the economy of these areas, mainly through regenerating the manufacturing base and establishing new businesses.

There are many specific examples of individuals and families who have thrived and become successful in their own right upon coming to the United Kingdom. I should like to mention the inspirational example of a good friend of mine, Mr Jaffer Kapasi, who was one of those who moved to Leicester in 1972. He arrived in the United Kingdom at the age of 22 with nothing. After university, he trained as an accountant and, several years later, set up his own business. He chaired a housing association for elderly and vulnerable people in the Midlands. When he took over the chairmanship in 1992, the association had 280 homes, and when he stepped down last year it had 1,900. He was awarded an OBE in 1997 for services to business in Leicestershire. This year, the Meiji University in Tokyo published his life story and I highly recommend that noble Lords read it.

The contributions of Ugandan Asians to the United Kingdom can be acknowledged on many levels and in many circles—economic, cultural, social and professional. It is a testament to how homogeneous a community they are that they have integrated so well into the British way of life. Wherever they have gone, they have earned respect, maintained a strong work ethic and forged successful relationships with other communities.

This is a land of opportunity and tolerance, and we have always found the environment highly conducive to success. These qualities have allowed the Ugandan Asian community to flourish and, in turn, its members have served only to enrich our society further. I believe that this anniversary should remind us of the opportunities that there have been for members of that community to live well and flourish.

Uganda’s loss truly has been Britain’s gain. The Asian community that came here and its future generations will, I believe, be good British citizens and help in the advancement and well-being of this great nation. Thank you, Britain, for accepting us when we arrived here. You have certainly lived up to the name “Great Britain”.

Sudan and South Sudan: EUC Report

Lord Sheikh Excerpts

Wednesday 17th October 2012 Grand Committee

[Lord Sheikh]

My Lords, I thank the noble Lord, Lord Teverson, for securing this important debate. I also congratulate my noble friend Lady Warsi on her new appointment. As someone who speaks periodically on foreign affairs, I look forward to her active involvement in these matters. I also commend the noble Lords who sit on the EU Committee for producing such a thorough and informative report, which of course preceded the follow-up report that we are debating today.

Some years ago I visited Juba and have always taken an interest in the region. The situation in Sudan and South Sudan is a major concern for the citizens of those countries and among the African diaspora. It is important to recognise that there is a regional as well as a global dimension to possible further hostilities between Sudan and South Sudan. The international community must continue to take interest and be involved in all issues relating to the two countries. Therefore, I wholeheartedly support the committee’s view that the international community must play a greater role in maintaining peace.

When South Sudan became the world’s newest country last year, owing to the 2005 comprehensive peace agreement, a number of issues remained unresolved with Khartoum. The economically sensitive and disputed areas of oil production and transit fees had essentially led to a stagnation of both economies, since South Sudan stopped pumping oil in January. Both Sudan and South Sudan are heavily reliant on oil revenues: 75% of the oil lies in South Sudan but all the pipelines and processing facilities are in Sudan.

Like Members on all sides of your Lordships’ House, I welcome the recent progress made on this issue. I commend the work of Thabo Mbeki, Pierre Buyoya and Abdulsalami Abubakar, the African Union mediators and former Presidents of South Africa, Burundi and Nigeria respectively, in working tirelessly to achieve this breakthrough. However, I would like to see a resolution to the dispute over the oil-producing Abyei region, preferably through a referendum. It is vital that this should take place once issues surrounding voter eligibility have been resolved.

Darfur remains a source of tension between both countries. My own charity, the Sheikh Abdullah Foundation, has undertaken humanitarian work in Darfur. Rebel groups in Darfur have joined forces with rebels in the Sudanese states of Blue Nile and South Kordofan. The shelling last week of Kadugli in South Kordofan led to the deaths of five people. I welcome the decision by the Sudanese Government to allow relief supplies to enter South Kordofan and Blue Nile states. Sudan has accused South Sudan of backing the Darfur rebel groups, which Juba denies, although a number of reports suggest that it is supporting the rebels operating across the border in Blue Nile and South Kordofan. I would be grateful if the Minister could shed some light on this matter.

The humanitarian situation in South Sudan is a cause for grave concern. It has been reported that children at the Yusuf Batil refugee camp in South Sudan are dying at more than twice the rate that is internationally recognised as an emergency. On average, consistently three or four children under the age of five are dying each day. Yusuf Batil is one of four refugee camps in Maban county and houses more than 100,000 people fleeing the fighting in Blue Nile state. Approximately one-third of all children at the camp are suffering from malnutrition. The lack of clean water and adequate sanitation facilities are also contributing to the high rate of infant mortality.

I wholeheartedly support the work of the Department for International Development in both Sudan and South Sudan. These efforts are changing the lives of many impoverished citizens in both countries. I commend the refugee and aid agencies that are providing food and healthcare to the thousands of displaced persons. I may add that there are several Muslim charities, including Islamic Relief, undertaking vital humanitarian work in South Sudan, where the people are mainly Christians and non-Muslims. These Muslim charities have in fact formed the Muslim Charities Forum to co-ordinate the work of the various charities.

As a landlocked nation, South Sudan must find ways of facilitating trade with its immediate neighbours. The South Sudanese Government have opened a 192 kilometre- long highway, which connects Juba with Nimule on the Ugandan border. The highway goes on from Nimule to meet Kampala, the capital of Uganda, and then runs through Kenya to the port of Mombasa. This highway project, which was funded by the United States Agency for International Development, is expected to significantly boost trade with east Africa. I particularly welcome this infrastructure project because it will reduce the cost of importing goods from Kenya and Uganda, the respective countries of my birth and where I spent my formative years.

I also welcome the announcement by the South Sudanese Government to launch an airline, which reflects the determination by the Government in Juba to address the current challenges surrounding infrastructure. At present, South Sudan has only 300 kilometres of paved roads. China has invested heavily in Sudan’s oilfields where its companies PetroChina and Sinopec are partners of Sudapet, which is owned by the Sudanese Government. China has also made investments in South Sudan, where the Government have announced that they will be receiving a $158 million loan from China to finish building a new airport in Juba.

In making reference to the follow-up report, I share the view that China must ensure that Chinese companies operating in both Sudan and South Sudan are responsible corporate citizens. I would be grateful if the Minister could inform the Committee about the steps that Her Majesty’s Government are taking to encourage China to play a more positive role in the region. The International Monetary Fund stated in its most recent report that South Sudan is failing to reach its economic potential owing to weak state institutions and poor infrastructure. It is therefore essential that Juba invests oil revenues wisely in order to remedy this situation. The stalemate over oil revenue revealed that the economic fortunes of Sudan and South Sudan remain linked. It is vital that Sudan and South Sudan reach agreements on all disputed areas so that both nations can prosper.

The British Government were active members of the comprehensive peace negotiations and the Darfur peace accords; they have an obligation, therefore, to work towards a favourable outcome for citizens in both countries. The international community has a responsibility to strive towards achieving stability in Sudan and South Sudan through building a multinational coalition that produces lasting change.

Middle East: Recent Developments

Lord Sheikh Excerpts

Friday 13th July 2012 Lords Chamber

[Lord Sheikh]

My Lords, I thank my noble friend Lord Howell for initiating this debate. Although the Motion refers to the Middle East, my contribution will include developments in North Africa. I have visited some of the countries in those areas and have personal knowledge of the situation in these countries.

Noble Lords will recognise that the Middle East and North Africa are commonly referred to as MENA. Therefore, I cannot discuss the former without making reference to the latter. It is vital that Her Majesty’s Government should continue to highlight and condemn instances of violence and discrimination against individuals and groups because of their beliefs, wherever, and whenever, they occur. To that end, I fully support the work of the Arab Partnership.

The Arab spring heralded a new era for many citizens who were living under oppressive regimes. However, it has led to unfortunate consequences that have permeated neighbouring countries; namely, Mali. Tuareg rebels now control two-thirds of Mali, due to the provision of weapons following Colonel Gaddafi's downfall. Algeria has just celebrated 50 years of independence, which has seen increased foreign investment to the nation in recent years. Libya’s first democratic election has been won by the former interim Prime Minister Mahmoud Jibril, who led Libya’s National Transitional Council last year. The composition of the Constituent Assembly in Tunisia occurred with little controversy. I hope that the elections in Tunisia scheduled for next year follow that trend.

Although both the elections in Libya and Egypt were reported to have been relatively peaceful, like most noble Lords, I am concerned with the perceived power struggle between President Morsi and the Special Council of the Armed Forces. What steps are Her Majesty’s Government taking to resolve that tension?

There are many positive developments to highlight in this debate about solidarity among nations in the region. I would now like to discuss the positive points, as the situation is good in certain areas. Bahrain appears to be successfully positioning itself as the Gulf’s shipping centre, following the opening of the Khalifa port and the Bahrain logistics zone. Oman is a founding member of the Middle East and North Africa Financial Action Task Force, which was established in 2004. Since Oman’s accession to the World Trade Organisation in 2000, a substantial improvement in its investment environment and regulatory framework has occurred. The 2006 free trade agreement with America resulted in the adoption of International Labour Organisation regulations, further encouraging international investment in Oman. I may add that Oman is important to us strategically and it is our friend.

Reports in the Saudi media last month claimed that Saudi Arabia had rehabilitated an old Iraqi oil line, which could serve as an alternative route to the Strait of Hormuz, should tension increase with Iran. Bahrain and Qatar have engaged in joint economic initiatives such as the proposed friendship bridge project, which would link the two countries. Both nations are also thought to be in discussion about construction of a subsea pipeline to supply natural gas from Qatar to Bahrain. In February 2010, the Emir of Qatar issued a decree which allowed the Minister of Business and Trade to waive the 49% foreign ownership cap in the tourism, natural resources, health, education and consulting sectors. I support this policy as it reflects a desire to attract further foreign investment.

The vast majority of nations in the Middle East are enjoying peace and prosperity. However, Iran and Syria unfortunately do not follow this trend. Iran is in clear defiance of six UN Security Council resolutions that call for the suspension of its uranium enrichment programme. The International Atomic Energy Agency has expressed concerns about the potential military implications of Iran’s nuclear programme. As such, I welcome the EU’s sanctions against Iran as a means of urging the regime to review its stance. We need to deal with the situation by the application of stringent sanctions and by negotiations. I do not favour any form of military action. What are my noble friend the Minister’s views on military intervention?

I am pleased that Russia has softened its position towards Syria by calling for a three-month extension of the UN monitoring mission, which is scheduled to end on 20 July. Yesterday the Syrian ambassador to Iraq, Nawaf al-Fares, defected to join the revolution against al-Assad’s regime. His is the second high-profile defection since the uprising began 16 months ago. The Republican Guard’s Brigadier-General Manaf defected last week. These two defections suggest that support for President Assad’s regime is diminishing. I welcome Russia’s decision to suspend defence co-operation with Syria. Russia has blocked two United Nations Security Council resolutions on Syria to date.

Last week, Hillary Clinton urged Russia and China to join Britain, America and France to put pressure on Assad’s regime. In May this year, 108 people were killed in the Houla massacre, 49 of whom were children. More killings occurred yesterday. Kofi Annan’s Geneva initiative does not demand the removal of Assad. It is therefore unpalatable to the Syrian opposition. Reports suggest that more than 17,000 persons have lost their lives since the uprising began 16 months ago. The US Secretary of State has also called for “real and immediate consequences” for non-compliance with Annan’s peace plan.

Qatar’s Prime Minister, Sheikh Hamad bin Jassim al-Thani, has expressed his intention to join any effort to end the bloodshed in Syria. Both Qatar and Saudi Arabia are providing arms and funds to the Free Syrian Army. Qatar played an important role in providing military and financial support during and after the Arab spring to countries in the Middle East and north African region. Qatar was a founding member of the Gulf Co-operation Council in 1981 and hosts a large American military base. Qatar also has the highest GDP per capita in the world, which is growing at a faster rate than that of any other nation. Qatar successfully acted as a mediator between Yemen’s Government and the Houthi rebels. We should be making more efforts towards further engagement with Qatar in all areas.

Last week I spoke about us undertaking more trade with overseas countries. With regard to the Middle East, there are favourable situations in certain countries and we must make use of these opportunities and do more business in the region. The Middle East is blessed with great mineral wealth and a vibrant culture. However, challenges lie ahead for peace in the region. It is up to Britain, alongside our international allies, to demonstrate leadership in efforts to help the region and achieve lasting peace.

UK Industry: International Competitiveness

Lord Sheikh Excerpts

Thursday 5th July 2012 Lords Chamber

[Lord Sheikh]

My Lords, I thank my noble friend Lord Jenkin for securing this important debate and congratulate him on his excellent speech. The Motion covers many areas vital to the UK economy. My contribution will focus mainly on the importance of trade.

I have visited a number of countries in the past two years where I have been privileged to meet various senior figures from politics and business and to speak at various meetings and conferences. Engaging with our overseas partners has reasserted my long-held belief that one of the best ways that we can improve our financial position, both globally and domestically, is to place much greater emphasis on international trade.

Our trade surplus and global market share in key industries such as aerospace and pharmaceuticals provides us with a solid base in manufacturing and research. The City of London maintains its position as the leading venue in Europe for financial services. To maintain and develop our economic promise, we must ensure that more of our goods and services are exported. I share the view held by the Chancellor that trade is vital to our economic prosperity. In addition to continuing cuts to the rate of corporation tax, the Chancellor stated that we must help British businesses to expand and innovate and that we should aim to double British exports to £1 trillion by the end of this decade. I believe that that will play an important role in helping our immediate economic recovery and ensuring that Britain remains a strong economic force for the foreseeable future.

I strongly support the efforts of UK Trade and Investment in encouraging small and medium-sized businesses to focus on exports, with a particular emphasis on the emerging markets. It is important that we maintain our strong trade links with America and our largest trading partner, the European Union. However, it is vital that we capitalise on the growing opportunities in Brazil, Russia, India and China. Many opportunities are presented by improvement in the standard of living in countries such as India and China. Russia must not be overlooked, especially with its new-found status as a member of the World Trade Organisation. We should be increasing our exports of high-value goods and financial services to millions of potential new customers.

The success of the so-called BRICs nations is worthy of praise, but I should like to mention the 7% club. Members of that club have achieved growth of at least 7% per annum since 1998. Research suggests that economies that achieve 7% annual growth will double in size every decade and more than quadruple in a generation. It is thought that after three decades, an economy that consistently grows at the rate of 7% per annum will be twice as large as one of achieving 5% annual growth. The 7% club includes Vietnam, Ethiopia, Uganda, Mozambique, Azerbaijan, Turkmenistan, Kazakhstan, Tajikistan, Angola, Chad, Sierra Leone, Rwanda and Cambodia.

Last month, I led a delegation of British parliamentarians to Azerbaijan, where we met President Ilham Aliyev and leading figures in commerce. We also discussed the relationship between the United Kingdom and Azerbaijan, and stressed that the UK is very interested in expanding business links between the two countries. The Middle East is a region that also holds many opportunities for enhanced trade. I know the area well and frequently visit the Middle East countries.

We could do more to increase trade with Commonwealth countries. Our historic connection should serve as an advantage. However, I would add that the membership of Mozambique and Rwanda speaks volumes about the influence and prestige of the Commonwealth as a unique association in welcoming countries that do not have links with the British Empire. As I mentioned earlier, those two nations also belong to the 7% club.

What plans do Her Majesty’s Government have to enhance trade with members of the 7% club? Greater co-operation among key government departments is vital to realise our potential to identify key markets and develop and promote British products overseas. That is why I wholeheartedly support the Government’s effort to strengthen dialogue among the Foreign Office, the Department for Business and the Department for International Development. International trade missions have a great role to play in achieving those goals. We should organise more trade missions to overseas countries. I am pleased to say that I was recently able to assist in arranging a trade mission to a foreign country.

We give generously to many countries through international aid, but we must consider giving more financial assistance through properly organised trade missions. Aid and trade can go hand-in-hand. Our ambassadors and high commissioners could play a more significant role in that respect.

I have spoken about Turkey and its strategic and economic importance on a number of occasions in your Lordships’ House. The Turkish economy has been growing approximately five times faster than the eurozone average. It is identified as one of the 20 high-growth priority markets in the UK Trade and Investment strategy. The UK-Turkey strategic partnership agreement has significantly helped to boost trade with this rising regional power. UK exports to Turkey in 2011 increased by 20% compared with 2010.

On domestic affairs, I must say a few words on youth unemployment. The level of youth unemployment in Britain is one of the highest in Europe. Young people have the potential to make a vital contribution to our economy and society. It is the responsibility of those in government and commerce to work together to develop the strategy that will help our young people to weather the economic storm. I am pleased that, as from today, the Government have given powers to cities such as Leeds to regenerate their areas, which will help to create more jobs. It is important that our future economic strategy recognises the importance of small businesses, entrepreneurs and innovation to our recovery. Small and medium-sized companies play a vital role in job creation. It is therefore essential that these enterprises are not burdened by excessive bureaucracy. Cutting this and reducing the layers of bureaucracy in our public services is vital to increasing efficiency in our industries.

I declare an interest: I am the chairman of an insurance broking and financial services organisation which also specialises in Islamic finance. I am also a vice-chairman of an associate parliamentary group on Islamic finance. We need to maintain and strengthen our role in promoting Islamic finance, which is based on mutuality, ethical behaviour, transparency and the acquisition of assets, which gives it more stability. Islamic finance is worth $1 trillion globally, and in the UK we have assets worth over $18 billion. Growth in the Islamic banking sector globally is nearly 20% per annum. In the United Kingdom we have a great deal of expertise which we can offer to the world. There are therefore opportunities for our country’s involvement globally. One can argue that if financial institutions had undertaken a greater volume of Islamic products, the financial problems we are facing would probably have been less severe.

We must of course promote our financial services industry but it is also imperative that we manufacture and export specialist products, such as precision machinery and pharmaceuticals. We have the expertise and resources to produce and export such goods. We need to have a balanced economy and encourage ideas that will further promote our manufacturing sector. I believe that we need a multifaceted approach to reviving our economic fortunes. Any overarching strategy must have a greater emphasis on international trade, which I am confident we can achieve.

Queen’s Speech

Lord Sheikh Excerpts

Thursday 17th May 2012 Lords Chamber

[Lord Sheikh]

My Lords, I want to focus specifically on our relationships with other countries, our overseas aid provisions, our drive to extend global stability and the need to undertake more overseas trade. As outlined in the Queen’s Speech, this Government’s first priority will be to reduce the deficit and restore economic stability. I believe that this will be the key to successfully implementing many of our other important policies, including in foreign affairs. The more economically stable our country is, the more we are able to help others across the world.

One of our notable commitments on foreign relations is to support the extension of political and economic freedom in the Middle East and north Africa. I have visited several countries in these areas and spoken with the heads of their Governments. I have established close links with their ambassadors and held discussions with them, and with citizens of these countries, regarding their relationships with the United Kingdom and the challenges facing their countries. We cannot expect other countries to adopt our form of government and no attempt should be made to do so. However, our involvement in any overseas country must be soft and we should therefore exercise soft influence. Although we can provide assistance where there are problems, the people themselves must find solutions and form a system that suits their circumstances. We can, however, help in building institutions, which are important if these countries are to achieve progress. In addition, we need to help bring in peace and stability and assist in the achievement of democracy and economic growth, which will result in the creation of jobs.

I am a strong believer in the empowerment of women and the need to deal with issues relating to poverty. It is also important to improve the standard of education and provide free primary education for all. It is important that we do not underestimate the extent to which politics and economics are intertwined in helping these countries to make their transitions. We have seen in several countries that political freedom often follows the opening up of economics. While these countries open up their own economies, it is important that the wider international community engages with them on an economic level. When countries are trading with and investing in each other, they are developing relationships and stakes in each other’s peace and stability. From a British point of view, I want to see more of our goods and services exported overseas. We need to be looking for new opportunities in these emerging powers; our manufacturing and service industries can help build these new democracies, while helping increase our export base. There will be mutual benefits to our country and our trading partners. This will also result in the building of people-to-people connections.

In addition to our duty to support countries in transition, we have a moral obligation to assist poorer countries to begin realising a state of transition. I have always been supportive of our pledge to commit 0.7% of gross national income as development assistance from next year, and I was pleased to hear this included in the Queen’s Speech. I have visited a number of developing countries where DfID is involved, and where a large part of my work has been in looking at the widespread impact of diseases on poor communities. I appreciate that this Government have made several bold commitments on this, including vaccinating children against preventable diseases and providing access to safe, clean drinking water for millions of people. There is still a level of consternation among the public over our ring-fencing of the aid budget. It is crucial that we not only continue on our course but take even greater care to ensure that this financial assistance gets through to the right places. In addition, the Department for International Development must be clear in showing us that our money is being put to good use, not being misappropriated.

Although I am in favour of providing aid to foreign countries, we must consider providing support, including financial assistance, to properly organised trade missions. It is essential that we organise trade missions made up of businesspeople who can look for opportunities overseas and undertake more business and trade. I am strongly of the view that aid and trade must be simultaneous and that our high commissions and embassies can play an active part in this regard. As a businessman, I have promoted the need for us to undertake more overseas trade. It is essential that we do not undersell ourselves in trade but actively enhance the position of UK plc. We have unique services and products which we can offer to the world, and, although the Government can create conditions, businesspeople must take the initiative and be proactive in undertaking more business overseas. I firmly believe that we can overcome our financial difficulties by the application of austerity measures and appropriate taxation, and by undertaking more business at home and overseas. This includes the sale of defence equipment to responsible Governments.

More can be done to promote our trade with Commonwealth countries. Furthermore, we need to look for more markets in South America, Asia and Africa. Trade must be two-way traffic, which means that not only should we go abroad to look for business but we must encourage others to come to our country. I was pleased to hear this morning that Vauxhall Motors will invest considerable capital in building new motor cars at its Ellesmere Port plant.

In closing, with reference to all overseas matters on military intervention, trade and development assistance, I emphasise the need for greater co-operation and more joined-up thinking between the relevant government departments.

Building Stability Overseas Strategy

Lord Sheikh Excerpts

Thursday 6th October 2011 Lords Chamber

[Lord Sheikh]

My Lords, I thank my noble friend Lady Falkner for securing this debate. This is an important and timely debate and an area of policy in which I have had considerable interest for a long time. The Building Stability Overseas Strategy is of great importance to our domestic and international interests. It is focused and comprehensive in identifying three pillars upon which the strategy is formed: early warning; rapid crisis prevention; and response and investing in upstream prevention.

The early warning system makes a commitment to produce an internal watch list of fragile countries that have the potential to become unstable over a 12-month period. The watch list is subject to an annual review. I welcome this requirement, as it will ensure that our efforts are targeted at the most fragile regions. Early intervention may prove to neutralise tensions among warring factions. We can take the lead, along with our international partners and supranational organisations to prevent conflicts from occurring.

The rapid crisis prevention and response pillar comprises a stabilisation response team, as mentioned in the strategic defence and security review. The progress made by the stabilisation response team deployed in Libya last May is a testament to the importance of such an initiative in promoting stability. By investing in the upstream prevention of instability, we can ensure that our aid goes towards promoting democracy while addressing civic challenges in fragile nations.

I welcome the announcement that 3,000 former combatants will be re-integrated into civilian life in Nepal by 2015. I would be grateful if the Minister could elaborate on the progress made by Her Majesty's Government in meeting this target. I visited Nepal last July, where I inaugurated a business school of excellence in Kathmandu.

I am also involved in helping with the trade delegation that will be visiting Nepal next week, and I am pleased that our ambassador to Nepal is participating in the arrangements of the visit. I feel that we need to develop stronger business links with overseas countries which will help our economic situation and build bonds between us and other countries.

The Secretary of State for the Foreign and Commonwealth Office has recognised that untapped potential. He has undertaken to overhaul our network of foreign embassies to turn them into engines for trade, supporting the Government's ambitions for an export-led recovery from the current economic situation. There is good will towards the United Kingdom, but we need to build on these relationships to achieve mutual benefits.

I am pleased that the Building Stability Overseas Strategy mentions this vital element. Our diplomacy should recognise the importance of greater dialogue among the Department for International Development, the Ministry of Defence and, of course, the Foreign and Commonwealth Office. Those departments are paramount to achieving progress through preventive diplomacy, and should form an integral part of any decision to embark upon any intervention overseas.

I am encouraged by the fact that that strategy has been developed by the various departments. In helping fragile nations to build institutions, we can make a vital contribution in furthering our national interests. Building institutions is important if we are to achieve progress. In addition, we should also of course assist in bringing peace and stability, making democracy work, helping economic growth, creating jobs, empowering women and children and helping to deal with poverty and lack of education. I emphasise the need to empower women and raise their standards of education.

The challenges facing our nation and the world at large require a multifaceted approach to our conduct of future relations. In recognising our status in the global arena, we have a role to play in preventing the rise of dictatorships and rogue states. Democratic values and freedom should be at the heart of our approach to international and foreign affairs. Our policies and actions must support countries that aspire to achieving democracy and ending the oppression of citizens. It is vital that the strategy should enable us to work more effectively with our international partners such as the Commonwealth nations and the European Union.

I have spoken on several occasions in your Lordships' House about the importance of the Commonwealth. I feel that the Commonwealth may play a greater role in conflict resolutions and promoting trade between the various countries.

I am pleased that there are now closer links between Commonwealth countries and Sri Lanka. I have visited Sri Lanka, where I was impressed with recent developments following the end of hostilities. I am a strong believer in the merits of education and its ability to contribute to stability in fragile nations. I feel that we must build connections between universities in the United Kingdom and educational institutions overseas.

Through initiatives such as the Union for the Mediterranean, the European Union has a part to play in the reconstruction of countries in north Africa, following the Arab spring. This is reminiscent of the role played by the European Bank for Reconstruction and Development in helping countries in central and eastern Europe to achieve democracy and build a free market economy following the collapse of communism.

I have visited both Egypt and the Gulf region in the last six months, where I have spoken with citizens about the challenges facing their countries. I feel that our involvement in any such country must be soft; we should exercise soft influence. When I visited Egypt, I found that the Egyptians had very high expectations. Although we can provide assistance to the people of a country where there are problems, the people must themselves find the solution and form a system which suits their circumstances. We should not expect foreign countries to adopt our form of government and there should be no attempt on our part to do so.

I have always supported the Government’s plan to ring-fence the international development budget. However, I remain concerned that there is consternation among the general public about this commitment. I would therefore be grateful if the Minister could provide information on what Her Majesty’s Government are doing to inform the public that this makes a vital contribution to stability in fragile nations.

I also welcome plans to boost the resources of the conflict pool and efforts to expand the Arab partnership initiative over the coming four years to support economic and political reform in north Africa and the Middle East. The tragic loss of life as a result of the Arab spring must not be in vain and it should be used to promote commerce and a strong civil society in these nations to make them free from corruption. Achieving peace and stability in any region that has been ravaged by war and has a wealth of cultural differences is always a challenge. It is important to recognise the strong regional dynamic of the barriers to peace in any region. By focusing on individual nations, the risk of instability in neighbouring countries must be heightened as ethnic divisions transcend borders.

Foreign policy and national security are intertwined and should be treated as such. The success of our foreign policy will work to promote our national security and interests both at home and abroad. We have the capability and intelligence to identify volatile regions where there is a danger of an outbreak in hostilities. World history is littered with examples of the repercussions inherent in a failure to identify unstable regions or places that have the potential to descend into instability. Government departments involved in forming this strategy deserve praise for devising a scheme that is both pragmatic and strongly relevant to the challenges facing both Britain and our national interests overseas.

Commonwealth Parliamentary Association

Lord Sheikh Excerpts

Thursday 8th September 2011 Lords Chamber

[Lord Sheikh]

My lords, I also thank my noble friend Lady Hooper for securing this timely debate ahead of the Commonwealth Heads of Government Meeting next month in Australia. I strongly believe in the Commonwealth and I have spoken in your Lordships’ House and elsewhere on this subject many times. I personally know high commissioners of several countries and have met leaders of their diasporas in the United Kingdom. I am interested in foreign affairs and have visited several Commonwealth countries.

The Commonwealth stands as a beacon to the global community. Membership shows a commitment to democracy, good governance and the rule of law. It is understandable why so many countries take great pride in their membership, and why the number wishing to join expands frequently. The Speaker of the Parliament of Norfolk Island referred to the Commonwealth as,

“the most wonderful place for a small place like us”.

This sentiment was reiterated by the chair of the CPA International Executive Committee when he identified the need for greater attention to be focused on the challenges facing smaller branches and the island states. It must, however, be emphasised that the Commonwealth is an organisation of equals. Smaller and economically vulnerable states are all given equal weight in the organisation. We are all aware that this is not the case in many other international organisations.

In choosing to address the recent Commonwealth Parliamentary Conference, the Prime Minister and the Foreign Secretary reaffirmed the importance of the association to the wider aims of the Commonwealth. The Prime Minister characterised the Commonwealth as modern, mainstream and practical. This seems to be a fairly relevant summary.

The Commonwealth's 2 billion inhabitants account for approximately 30 per cent of the world's population. It has been estimated that this translates to a contribution of one-quarter of the global economy. In excess of $3 trillion dollars worth of trade occurs annually within the Commonwealth. The combined gross domestic product of the organisation is thought to have almost doubled between 1990 and 2009. Member nations include India, South Africa, Malaysia, Nigeria and Singapore. These countries are among the fastest growing economies and are certain to shape the future of the global economy.

I welcome announcements by the Department for International Development that it will invest in Commonwealth countries separately to the United Kingdom's annual contribution to Commonwealth institutions and development programmes. A number of member nations are reliant upon the organisation's support in the area of development.

In choosing the right honourable Member for Kensington and Chelsea as our representative on the Commonwealth's Eminent Persons Group, we have an individual with a wealth of expertise in international politics. The group has been asked to make recommendations on improving efficiency within the Commonwealth. I, like many other Members of your Lordships’ House, look forward to reading its proposals.

It is argued by some that because the affairs of the Commonwealth are not legally binding, the organisation is weaker and its power is relatively less than, say, that of the European Union. I would, however, argue that this is a misunderstanding. It is the voluntary nature of the body and the common bond which provides its very strength. Indeed, the Commonwealth remains a forum for debating important issues affecting our world.

The Commonwealth comprises 54 nations, which represent each of the world’s prominent religions. I am actively involved in building harmonious relationships between various racial and religious groups, and I believe that the Commonwealth is a marvellous platform to bring people together under one umbrella. It is home to 800 million Hindus, 500 million Muslims and 400 million Christians. It is an important multilateral organisation that demonstrates the effective use of soft power in international relations. I would like to see Commonwealth countries more actively involved in conflict resolution and building stronger business links between the various countries.

The membership of Mozambique and Rwanda speaks volumes about the influence and prestige of the Commonwealth as a unique association in welcoming countries who do not have links to the British Empire. However, Zimbabwe and Fiji cause us concern. I would be grateful if the Minister could provide an update on Her Majesty's Government’s plans to engage with these countries.

The Commonwealth includes Sri Lanka, a country that has failed to reach its full potential because of ethnic tensions that have blighted the lives of many. I visited Sri Lanka as a member of a parliamentary delegation—the visit was organised by the Commonwealth Parliamentary Association—and I was impressed with the recent developments following the hostilities. My Lords, my time is up, so I will sit down.