Foreign AffairsWritten evidence from Paul Mercer, Kuwait Finance House (Bahrain)
1. Summary
1.1 I am a UK citizen and a UK law qualified lawyer and I am currently living and working in the Kingdom of Bahrain. I have lived and worked in the Kingdom of Bahrain for over 12 years.
1.2 The UK government should pursue a foreign policy towards the Kingdom of Bahrain whereby the UK remains an “ally” and a “friend”. Allies and friends help each other when they experience difficulties and accordingly at this time the UK needs to do more to help Bahrain while it is experiencing political turmoil. Such help, in my humble opinion, should be in the form of encouraging adherence to the rule of law and supporting legitimate and credible NGOs to effect realistic and achievable change utilizing the current system of government. This is how the UK system of government evolved over time. The UK is well placed to assist Bahrain in this regard. In turn, realistic and achievable change can occur which does not put the population at risk. This will then allow Bahrain to continue to prosper economically and therefore the UK can benefit from continued trade links as a trusted “ally” and “friend” and the UK (and the World) will benefit from energy security and effective counter terrorism by not destabilizing a crucial part of the Middle East. By not supporting Bahrain in such a way, the UK will no longer be acting like a “friend” and exposes Bahrain to greater risk of political turmoil and instability. This could have disastrous consequences for Bahrain, the region and UK (and the World) in terms of energy security and counter terrorism.
2. Introduction
2.1 By way of introduction my name is Paul Mercer. I am a UK citizen and a UK law qualified lawyer and I have lived and worked in the Kingdom of Bahrain for over 12 years. I am married with five children, four of whom were born in the Kingdom of Bahrain (the fifth one was born in the Kingdom of Saudi Arabia). All my five children attend English schools in the Kingdom of Bahrain.
2.2 I am currently an executive manager at Kuwait Finance House (Bahrain) (one of the World’s largest Islamic banks), the Chairman of Elaf Bank (an Islamic investment bank based in Bahrain), the Vice Chairman of Menatelecom (a Bahrain telecommunication company) and recently worked as a contract expert on legal aspects of Islamic finance for the International Monetary Fund. I am also a director of Turkapital (an Islamic investment company which focuses on investing in Turkey) and Motherwell Bridge (an engineering company in the UK). I used to work as a lawyer for English law firms Macfarlanes, Norton Rose and Clifford Chance.
2.3 Here are the websites for each of the companies I currently work for or sit on the board of directors:
http://www.motherwellbridge.com/
2.4 Given the time I have spent in the Kingdom of Bahrain I have become very attached to the country and its people and would very much like Bahrain to succeed and come out of this current period of political turmoil. In this regard I am trying to utilize my skills as a UK law qualified lawyer to assist Bahrain during this difficult time and I have just initiated an international lawyers pro bono forum with the objective of coordinating pro bono work by international lawyers in the Kingdom of Bahrain and I am in the process of establishing a human rights NGO with the objective of providing a truly independent look at human rights in the Kingdom of Bahrain.
2.5 As a UK citizen living and working in Bahrain I would like to offer my humble views and suggestions as to the direction of the UK government’s foreign policy towards the Kingdom of Bahrain. I believe that the UK government’s foreign policy towards the Kingdom of Bahrain should reflect the longstanding good relations between the two countries as “friends” and “allies” which in turn should lead to improved and better trade and business opportunities together with appropriate assistance on human rights issues. I believe that my submission reflects the views of a number of longstanding British expats and British business in the Kingdom of Bahrain.
3. Balancing the UK government’s current foreign policy towards the Kingdom of Bahrain in terms of defence, commerce, energy security, counter-terrorism and human rights?
3.1 For the past couple of years I have attended business roundtable meetings involving UK firms in Bahrain, prominent UK businessmen in Bahrain and the British Embassy in Bahrain and from such meetings I have my own views as to the UK government’s foreign policy towards the Kingdom of Bahrain from the perspective of being “on the ground” in Bahrain. Indeed, up until February/March 2011 I would have described the UK government as an “ally” and “friend” of Bahrain which in turn led to mutually beneficial trading and commercial opportunities. Since February/March 2011 the UK government’s foreign policy does not seem as supportive of Bahrain with the perception that it could change if political change occurs. Whether there is a policy to this effect or not this is the perception and indeed the view amongst some of the British business community in Bahrain is that the UK government could be more of a friend to Bahrain during this period of political turmoil.
3.2 With regard to promoting human rights in Bahrain it would help if UK foreign policy was even handed and focused on the human rights of all and not just the self proclaimed “opposition”. The UK should not take sides and I suggest it should support the work of legitimate NGOs in this field ie those which truly do not have a political agenda. In this context it would help if the UK government could stress that changes should be done within the current legal framework and on the basis of what is practical, realistic and achievable. Indeed, you will be aware that the Bahrain government is amenable to change which can been seen through the work of the Bahrain Independent Commission of Inquiry (“BICI”) and the Bahrain governments acceptance of its findings, warts and all, and its sincere dedication to adopt the recommendations of the BICI. Evolution is better than revolution. Also, what do we mean when we say we want to promote human rights? Human rights covers a broad range of issues and should not be used as a cloak to effect political change. I believe that the UK could assist (and therefore be more of a friend) by assisting the work of credible NGOs on the full spectrum of human rights issues. In this regard I am working on establishing a politically neutral NGO to work on human rights in Bahrain utilizing the skills of volunteer British lawyers already living and working in Bahrain who wish to offer their services on a pro bono basis. I consider it would be worthwhile for the UK government to support such initiatives as this way it would be a “friend” to the country, actually a “friend” to the people of Bahrain.
4. Understanding the political situation in the Kingdom of Bahrain
4.1 Before initiating any foreign policy towards the Kingdom of Bahrain I believe that it is essential to understand the political situation in the country. Indeed, following the “Arab Spring” in countries such as Egypt, Libya and Tunisia some may consider that the same is happening in Bahrain and therefore the UK government’s foreign policy towards Bahrain should be on the side of political change and “democratization”. As a long time resident in Bahrain and as someone who witnessed the protests in Bahrain during February/March 2011 first hand, I would say that it would be wrong of the UK government to assume that Bahrain is on the verge of a popular uprising like what occurred in Egypt and Syria. Bahrain is totally different.
4.2 I live and work with Bahrainis representing the full spectrum of political views and it is my clear understanding that a significant portion of Bahrain citizens (ie most) are content with the current system of government. This is not to say that Bahraini citizens don’t want change. Some do, but they want change based on the current system. We know from UK history that such change takes time and we should allow for that time. Moreover, we have seen that where change is too quick you risk destabilizing the country and indeed the region. This is obviously not good for the people of Bahrain just as it is not good for UK foreign policy in terms of energy security, counter terrorism and trade. We saw what happened in February/March 2011 when change occurs too quickly and it leads to chaos and therefore exposes the population to danger.
4.3 From my interaction with Bahrainis it seems to me that only a very small minority want to change the system of government. I think it would be a mistake by the UK government to think that those who throw Molotov cocktails have widespread popular support. Indeed, at the time of writing, we have just experienced 5 terrorist blasts around Manama which killed two Asian expat cleaners and seriously injured another. There is no widespread popular support for such actions. Bahrainis by their very nature are kind and peaceful and it would be wrong to think that such behavior is a reflection of the views of the majority or as a sign of frustration at the lack of political change.
5. Understanding Bahrain culture and the current system of government
5.1 Before adopting any policy towards the Kingdom of Bahrain I think it is essential to understand the culture and the current system of government in Bahrain.
5.2 The system of government in the Kingdom of Bahrain, like all the Arab Gulf States, is based upon a ruling royal family (much like the UK in the past) and that members of the ruling families are expected to serve their countries and the people within them. Central to this system of government is the concept of “majlis”. “Majlis” literally means a place to sit, however, it has a wider meaning which embodies gatherings where various issues are discussed and typically government bodies which deal with legislative and administrative matters are referred to as a type of “majlis”. In this system of government, elders are respected for their wisdom and play an important role in society. Further, should any resident or citizen have a problem or a concern which isn’t being fairly addressed he/she can seek access to a “majlis”. HRH Prince Khalifa bin Salman and his “majlis” effectively oversees the organs of the Bahrain government in parallel with HRH King Hamad.
5.3 So how does the “majlis” system work? Well I have had the privilege of attending a “majlis” of the Prime Minister HRH Prince Khalifa bin Salman and can provide you with a first hand account. Anyone, can ask to attend a “majlis”, the idea being that the ruling family are available and provide access to all. At the “majlis” I attended I can testify to this as I noticed the attendees represented all aspects of Bahrain society. I noticed a delegation from the church, a Shia scholar, a Sunni scholar, businessmen, professionals, members of parliament, doctors, expats and others. At the “majlis” HRH Prince Khalifa bin Salman took the time to listen to the concerns of those who wished to raise them and further he made it a point to ask the community about the general living condition of residents and expats. Amongst other things he asked whether there were enough medical centres and whether people were able to go about their daily lives in comfort and I got a genuine sense that HRH Prince Khalifa bin Salman was concerned about the welfare of everyone in Bahrain’s society. Where else in the World can a normal resident or citizen have access to the head of a government? Would you be able to raise any issues you have with the UK’s Prime Minister David Cameron or the US President Barak Obama?
5.4 Incidentally, the “majlis” system of government has been employed in Arab and Islamic cultures for centuries and it seems to me that this is often not appreciated.
5.5 The point I wish to make is that just because the system of government in Bahrain is different it doesn’t mean it is necessarily wrong. It is based on Islamic and Arab culture and it is capable of evolution Accordingly, I would suggest that the UK government recognizes this and assists in realistic change based on the current system of government. This is how the system of government evolved in the UK so why not take the same approach in Bahrain?
5.6 I would also like to refer to the role of the Prime Minister HRH Prince Khalifa bin Salman and provide some perspective from someone “on the ground”. Whilst the self proclaimed “opposition” often refer to HRH Prince Khalifa bin Salman as the World’s longest serving unelected prime minister, this ignores the fact that a very large portion of the Bahrain population want HRH Prince Khalifa bin Salman as the prime minister.
5.7 I saw the response of HRH Prince Khalifa bin Salman to the political crisis in Bahrain. At a time of great uncertainty for residents and citizens alike, HRH Prince Khalifa bin Salman became a reassuring figure encouraging people to return to their normal lives and to continue working and bringing up their families. Indeed, when the period of National Safety was declared, the mood in Bahrain was tense and many of the population were concerned about venturing out. In response, HRH Prince Khalifa bin Salman toured the country and showed to everybody it was safe to return to normal life. Again, when an illegal gathering occurred in the country’s main shopping mall scaring away families, within hours HRH Prince Khalifa bin Salman visited the mall and immediately gave an assurance to the country we can continue our everyday lives. The point is that many see the role of HRH Prince Khalifa bin Salman as a man who cares passionately about the people of Bahrain and the success of the country as a commercial entity much in the same way as I imagine Queen Elizabeth II feels for the UK. Moreover, given the role of HRH Prince Khalifa bin Salman you can certainly appreciate that if he were to no longer continue his duties there would be an enormous power vacuum that would de-stabilize Bahrain further. Indeed, in an interview with Der Spiegel HRH Prince Khalifa bin Salman said he would resign if that would solve Bahrain’s political unrest but he cannot as it wouldn’t—a large portion of Bahrain’s society would not agree to this.
6. February/March 2011
6.1 I was in the Kingdom of Bahrain during the unrest during the period February/March 2011. As you will probably recall this coincided with the “Arab Spring” in other Arab countries. But this was no popular movement to overthrow the incumbent government like in Egypt or Syria. What started off as a movement for change with an almost festival like feel it quickly took a sectarian, radical and violent turn. In my view, it was wrong to allow a permanent mass protest in the centre of the capital (ie Pearl or GCC roundabout) as this proved to be a danger for the population as a whole. For example, would the UK allow a similar occurrence in London? Is this the way to effect meaningful and effective change? Such forms of protest are not allowed in the UK and as we now know creates instability and the loss of security. Not only is such a situation not beneficial to the population (including those who want change) it destabilizes the country and the region which in turn puts at risk UK (and World) interests in terms of energy security and counter terrorism.
6.2 When Bahrainis consider change you must note that this is in the context of an existing benevolent society which currently offers free education, free healthcare, zero income tax and free housing. Bahrainis do not want to lose these benefits.
7. Business between the UK and Bahrain
7.1 Because of previous friendly and good relations between the Kingdom of Bahrain there is no doubt that this has fostered good business relations between the two countries. Obviously to maintain such business relations the UK should seek to maintain friendly relations and seek to continue being a “strategic partner”.
7.2 Bahrain is a key financial centre in the Middle East and especially so for Islamic finance. I have seen how the friendly relations between the countries have encouraged trade. This is because Bahrain is comfortable with the UK as a trusted business partner. This is seen in business where UK qualified professionals are well respected and are well represented within Bahrain companies. Moreover, English law is often used as a governing law for commercial transactions as there is a general view in Bahrain that UK laws and business practices are generally fair. Should the UK no longer have friendly relations with Bahrain or should the UK not help Bahrain as friends could or should do you put at risk such trading and commercial ties.
8. Suggestion
8.1 The UK government should pursue a foreign policy towards the Kingdom of Bahrain whereby the UK remains an “ally” and a “friend”. Allies and friends help each other when they experience difficulties and accordingly at this time the UK needs to do more to help Bahrain while it is experiencing political turmoil. Such help, in my humble opinion, should be in the form of encouraging adherence to the rule of law and supporting legitimate and credible NGOs to effect realistic and achievable change utilizing the current system of government. This is how the UK system of government evolved over time. The UK is well placed to assist Bahrain in this regard. In turn, realistic and achievable change can occur which does not put the population at risk. This will then allow Bahrain to continue to prosper economically and therefore the UK can benefit from continued trade links as a trusted “ally” and “friend” and the UK (and the World) will benefit from energy security and effective counter terrorism by not destabilizing a crucial part of the Middle East. By not supporting Bahrain in such a way, the UK will no longer be acting like a “friend” and exposes Bahrain to greater risk of political turmoil and instability. This could have disastrous consequences for Bahrain, the region and UK (and the World) energy security and counter terrorism.
8.2 Should you require any further input from me please do not hesitate to contact me.
18 November 2012