As tensions simmer, is there big trouble ahead in the Med?


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Not all is quiet on the eastern Mediterranean front. Turkey's recent decision to acquire a landing platform dock may seem innocuous at face value, but it might be another sign that the conflict with Cyprus over the boundaries of Nicosia's Exclusive Economic Zone (EEZ) has taken on a more aggressive dimension. Escalation into armed conflict is unlikely at this point, but if a similar dispute between Azerbaijan and Turkmenistan over hydrocarbon resources in the Caspian Sea is any indication, it has the potential to cause major damage.

When Turkey invaded Cyprus in 1974, it captured only a small part of the island before a ceasefire was enacted.

In 1983, the Turkish Republic of Northern Cyprus declared its independence, but is not recognised by Greek Cyprus – or most of the international community – as a legitimate state.

When the Aphrodite natural gas reserve was discovered off Cyprus in 2011, the Turkish-Cypriot constituency, which claims most of Nicosia’s territorial waters as its own, immediately challenged the island’s rights to exploration and production in that area.

The issue of who owns offshore hydrocarbons has been a point of contention ever since, provoking both Turkey and Cyprus to flex their muscles.

As Al-Monitor reported, the amphibious transport dock Turkey wants to buy is no routine piece of equipment. Coming with a price tag between $800 million and $1 billion, it can carry “a battalion-sized unit of 1,000 troops and personnel, eight utility helicopters, three unmanned aerial vehicles and 150 transport vehicles”.

Turkey has repeatedly made it clear it wishes to upgrade its maritime presence by building navy corvettes and purchasing coastal surveillance systems, marine patrol aircraft, and other bells and whistles.

Greek Cyprus, meanwhile, decided in December to purchase two Israeli gunboats and two navy corvettes from France to protect the island’s EEZ. But Nicosia’s efforts to increase the size of its navy pale in comparison to the Turkish navy’s 14 submarines, 27 gunboats, and 75 aircraft.

The trajectory of the conflict between Azerbaijan and Turkmenistan over ownership of three fields in the Caspian Sea should serve as a warning to Turkey and Cyprus.

Since the collapse of the Soviet Union in 1991, Baku and Asghabat have contested their maritime boundaries while developing undisputed areas of the Caspian seabed and turning immense profits. But instead of coming to an agreement on the disputed fields to increase exploitation efficiency, Turkmenistan and Azerbaijan chose instead to engage in an arms race, using their hydrocarbon revenues to upgrade their military hardware.

Both have used their growing maritime presence against each other in reaction to perceived violations. WikiLeaks reveals two incidents in 2008 in which gunboats from Azerbaijan’s coastguard threatened international oil company ships working for Turkmenistan, and there are unconfirmed reports that in April 2013 Turkmen naval forces on the Caspian shot at and damaged Azerbaijan’s offshore oil refining infrastructure. These days, however, this simmering rivalry appears to be on track for reconciliation.

Unfortunately, Turkey and Cyprus are not due for a similar rapprochement any time soon. When Cyprus allowed Noble Energy to begin drilling off its southern shore in September 2011, Turkish Prime Minister Recep Tayyip Erdogan declared that Greek Cyprus could not drill before a solution to the Cyprus problem had been reached, and threatened to deploy warships to the offshore zone.

The following month, Turkey sent a seismic research vessel – accompanied by gunboats – to the same area. Ankara also claims that Israel scrambled fighter jets to buzz the ship, and reacted by chasing them away.

In November last year, shortly after Cyprus announced the auctioning off of two offshore blocks located in an area that Turkey claims for its own continental shelf, a navigational telex issued by Turkey declared that three seismic research vessels would carry out surveys in the eastern Mediterranean. Nicosia denounced the planned action as an encroachment on its EEZ.

On Monday, Nicosia said it would complain to the United Nations after a seismic vessel licensed by French oil giant Total was reportedly harassed by the Turkish navy while surveying for offshore oil and gas in the Greek Cypriot EEZ.

This is not to say that the Turkey-Cyprus row will escalate into armed conflict.

Rather, all signs point to past incidents as political posturing, particularly since Cyprus does not have enough funds to actually invest in a significant naval presence. Mr Erdogan would also be wise to prevent Turkey’s posturing from getting out of control.

Allison Good is a freelance journalist based in the US

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Dhadak

Director: Shashank Khaitan

Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana

Stars: 3

Last 10 NBA champions

2017: Golden State bt Cleveland 4-1
2016: Cleveland bt Golden State 4-3
2015: Golden State bt Cleveland 4-2
2014: San Antonio bt Miami 4-1
2013: Miami bt San Antonio 4-3
2012: Miami bt Oklahoma City 4-1
2011: Dallas bt Miami 4-2
2010: Los Angeles Lakers bt Boston 4-3
2009: Los Angeles Lakers bt Orlando 4-1
2008: Boston bt Los Angeles Lakers 4-2

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What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

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The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

List of alleged parties
  • May 15 2020: Boris Johnson is said to have attended a Downing Street pizza party
  • 27 Nov 2020: PM gives speech at leaving do for his staff
  • Dec 10 2020: Staff party held by then-education secretary Gavin Williamson 
  • Dec 13 2020: Mr Johnson and his then-fiancee Carrie Symonds throw a flat party
  • Dec 14 2020: Shaun Bailey holds staff party at Conservative Party headquarters 
  • Dec 15 2020: PM takes part in a staff quiz
  • Dec 18 2020: Downing Street Christmas party 
Gulf rugby

Who’s won what so far in 2018/19

Western Clubs Champions League: Bahrain
Dubai Rugby Sevens: Dubai Hurricanes
West Asia Premiership: Bahrain

What’s left

UAE Conference

March 22, play-offs:
Dubai Hurricanes II v Al Ain Amblers, Jebel Ali Dragons II v Dubai Tigers

March 29, final

UAE Premiership

March 22, play-offs: 
Dubai Exiles v Jebel Ali Dragons, Abu Dhabi Harlequins v Dubai Hurricanes

March 29, final

The years Ramadan fell in May

1987

1954

1921

1888

How to wear a kandura

Dos

  • Wear the right fabric for the right season and occasion 
  • Always ask for the dress code if you don’t know
  • Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work 
  • Wear 100 per cent cotton under the kandura as most fabrics are polyester

Don’ts 

  • Wear hamdania for work, always wear a ghutra and agal 
  • Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Sam Smith

Where: du Arena, Abu Dhabi

When: Saturday November 24

Rating: 4/5

'Munich: The Edge of War'

Director: Christian Schwochow

Starring: George MacKay, Jannis Niewohner, Jeremy Irons

Rating: 3/5

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199

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The Birkin bag is made by Hermès. 
It is named after actress and singer Jane Birkin
Noone from Hermès will go on record to say how much a new Birkin costs, how long one would have to wait to get one, and how many bags are actually made each year.

Defined benefit and defined contribution schemes explained

Defined Benefit Plan (DB)

A defined benefit plan is where the benefit is defined by a formula, typically length of service to and salary at date of leaving.

Defined Contribution Plan (DC) 

A defined contribution plan is where the benefit depends on the amount of money put into the plan for an employee, and how much investment return is earned on those contributions.