President Barack Obama greets King Abdullah II of Jordan in California earlier this month. Brendan Smialowski / AFP
President Barack Obama greets King Abdullah II of Jordan in California earlier this month. Brendan Smialowski / AFP
President Barack Obama greets King Abdullah II of Jordan in California earlier this month. Brendan Smialowski / AFP
President Barack Obama greets King Abdullah II of Jordan in California earlier this month. Brendan Smialowski / AFP

If the US is leaving the region, where will the Mid-East look?


Faisal Al Yafai
  • English
  • Arabic

Like a stormy marriage, America’s relationship with the Arab world appears to be slowly unravelling.

Long the guarantor of security in the region and, before that, the heir to Britain’s empire and great rival to the Soviet Union, the United States has been more disengaged from the Middle East under Barack Obama than at any time in recent political memory.

What happened? Events, dear boy. The Iraq war tipped America beyond its unipolar moment and the financial crisis entrenched its comparative weakening. America can no longer be everywhere at all times and as the country focuses its resources on the East, and exploits its own energy resources more, the importance of the Middle East diminishes.

If America leaves, where, then, will the Arabs look?

First and foremost, they will look to themselves. The reason the Egyptians are seeking Russian weaponry and the UAE is seeking US fighter jets is because the Arab nations recognise they can no longer depend on any external source for their defence.

Because not merely is the US exiting the region, but other big powers are increasingly unreliable. France’s visit to Iran at the start of this month, with representatives of more than 100 French companies in tow, did not go unnoticed in the Gulf states.

France has been untiring in its attempts to sell fighter jets on one side of the Arabian Gulf. If a nuclear deal with Iran is concluded, the lure of selling to the other side might be irresistible.

Secondly, the Arabs will look to each other. When Saudi Arabia pledged US$3bn (Dh11bn) to Lebanon’s army, it was because the Gulf state understands that it must knit together its alliances against the threat from the Syrian civil war.

The spillover from the conflict is a real threat to the kingdom and to the other Gulf states. The conflict with which it is often compared – the Lebanese civil war – occurred at a very different time in history, a time before transnational jihadism had such a hold on the imagination of some in the Muslim world. It also occurred in a much smaller country, unlike Syria which has large swathes of ungoverned desert.

First Iraq, now Syria have become breeding grounds for radicalism, and the Gulf states understand that whatever happens in the Levant will eventually reach their shores. The time to strengthen their alliances is now.

Ditto with the Gulf’s staunch support for Egypt’s military, and with the desire for closer ties between GCC countries and a joint military command for the armies of the Gulf states. All are part of a broader shift towards entrenching the cooperation with and dependence on one another.

And lastly, the Arabs will look to new alliances. That’s why Saudi Arabia is tentatively formulating a post-US tilt, seeking to put into policies its desire for a more assertive, outward-facing stance. The expected defence and security deal between Saudi Arabia and Pakistan is just one part of this. The military deal between Egypt and Russia is another.

More will follow. The coming years will see something more akin to the 1950s, where there was much realigning of alliances. The most comprehensive of these was what was known as “the Baghdad Pact”, a military alliance that stretched from Pakistan in the east, through Iran and Iraq, to Turkey.

Something similar, in fact if not in name, will surely follow, as Arab states seek alliances to ensure their safety, as the superpower leaves.

In fact, America is not really leaving, at least not any time soon. But the feeling of disengagement, even if it is slight, has serious implications.

Countries like Saudi Arabia, and other Gulf states, will not leave their security to chance, even a slight chance, and especially not with a glowering Iran across the Arabian Gulf. So even a small amount of disengagement has costly, long-term consequences, as countries divert more of their resources towards protecting their borders and deterring threats.

In any case, America’s relationship with the Arabs – if it is, to continue the metaphor, a marriage – is one with much unresolved business.

Even if Egypt tilts slightly away from the US, the United States will need to continue offering the estimated $1.5bn a year to the country’s military – because that aid underwrites the peace treaty with Israel. It is likely, in the medium term, that many of the traditional alliances that the US has in the region will need to be rethought, including the alliance with Israel, as the superpower finds itself less concerned over the problems of the Middle East.

But for now, the US will have to keep paying to maintain the status quo, even as other countries, like Russia, step in to try and change it.

America’s role in the region has sometimes been positive, sometimes negative. And yet, few of this current generation of politicians can imagine a Middle East without it. Like a strained relationship, neither side wants to separate completely, or can fully imagine a life without the other.

falyafai@thenational.ae

On Twitter: @FaisalAlYafai

Six things you need to know about UAE Women’s Special Olympics football team

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They describe sport as their passion

The girls don’t dwell on their condition

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When not in training, they play football with their brothers and sisters

The girls want to inspire others to join the UAE Special Olympics teams

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The burning issue

The internal combustion engine is facing a watershed moment – major manufacturer Volvo is to stop producing petroleum-powered vehicles by 2021 and countries in Europe, including the UK, have vowed to ban their sale before 2040. The National takes a look at the story of one of the most successful technologies of the last 100 years and how it has impacted life in the UAE. 

Read part four: an affection for classic cars lives on

Read part three: the age of the electric vehicle begins

Read part one: how cars came to the UAE

 

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

Pox that threatens the Middle East's native species

Camelpox

Caused by a virus related to the one that causes human smallpox, camelpox typically causes fever, swelling of lymph nodes and skin lesions in camels aged over three, but the animal usually recovers after a month or so. Younger animals may develop a more acute form that causes internal lesions and diarrhoea, and is often fatal, especially when secondary infections result. It is found across the Middle East as well as in parts of Asia, Africa, Russia and India.

Falconpox

Falconpox can cause a variety of types of lesions, which can affect, for example, the eyelids, feet and the areas above and below the beak. It is a problem among captive falcons and is one of many types of avian pox or avipox diseases that together affect dozens of bird species across the world. Among the other forms are pigeonpox, turkeypox, starlingpox and canarypox. Avipox viruses are spread by mosquitoes and direct bird-to-bird contact.

Houbarapox

Houbarapox is, like falconpox, one of the many forms of avipox diseases. It exists in various forms, with a type that causes skin lesions being least likely to result in death. Other forms cause more severe lesions, including internal lesions, and are more likely to kill the bird, often because secondary infections develop. This summer the CVRL reported an outbreak of pox in houbaras after rains in spring led to an increase in mosquito numbers.

The years Ramadan fell in May

1987

1954

1921

1888

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.”

The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity

Most sought after workplace benefits in the UAE
  • Flexible work arrangements
  • Pension support
  • Mental well-being assistance
  • Insurance coverage for optical, dental, alternative medicine, cancer screening
  • Financial well-being incentives 
Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 

Results:

First Test: New Zealand 30 British & Irish Lions 15

Second Test: New Zealand 21 British & Irish Lions 24

Third Test: New Zealand 15 British & Irish Lions 15

How to become a Boglehead

Bogleheads follow simple investing philosophies to build their wealth and live better lives. Just follow these steps.

•   Spend less than you earn and save the rest. You can do this by earning more, or being frugal. Better still, do both.

•   Invest early, invest often. It takes time to grow your wealth on the stock market. The sooner you begin, the better.

•   Choose the right level of risk. Don't gamble by investing in get-rich-quick schemes or high-risk plays. Don't play it too safe, either, by leaving long-term savings in cash.

•   Diversify. Do not keep all your eggs in one basket. Spread your money between different companies, sectors, markets and asset classes such as bonds and property.

•   Keep charges low. The biggest drag on investment performance is all the charges you pay to advisers and active fund managers.

•   Keep it simple. Complexity is your enemy. You can build a balanced, diversified portfolio with just a handful of ETFs.

•   Forget timing the market. Nobody knows where share prices will go next, so don't try to second-guess them.

•   Stick with it. Do not sell up in a market crash. Use the opportunity to invest more at the lower price.

List of alleged parties

 

May 12, 2020: PM and his wife Carrie attend 'work meeting' with at least 17 staff 

May 20, 2020: They attend 'bring your own booze party'

Nov 27, 2020: PM gives speech at leaving party for his staff 

Dec 10, 2020: Staff party held by then-education secretary Gavin Williamson 

Dec 13, 2020: PM and his wife throw a party

Dec 14, 2020: London mayoral candidate Shaun Bailey holds staff event at Conservative Party headquarters 

Dec 15, 2020: PM takes part in a staff quiz 

Dec 18, 2020: Downing Street Christmas party