Haqqani 'terrorist' listing complicates US withdrawal



In September 2011, the Haqqani network in Pakistan took the blame for a deadly attack on the US embassy in Kabul, across the border in Afghanistan. A week later, during testimony on Capitol Hill, the US military's top officer, Admiral Mike Mullen, referred to the Haqqanis as a "veritable arm" of the Inter-Services Intelligence (ISI). And a year after that, the US added the Haqqani Network to its list of terrorist groups.

All of which has me wondering: why then, and what now?

In the 1980s, Jalaluddin Haqqani was exclusively a CIA asset. In the 1990s he fought against the Pakistan-backed Afghan government of Gulbuddin Hekmatyar and subsequently, against the Taliban. Then, after 1996, he most likely became associated with the Inter-Services Intelligence, Pakistan's spy service.

By that time Jalaluddin was a war veteran with about 17 years of experience behind him. The Haqqani patriarch certainly needed no education in guerrilla warfare from the ISI; in fact, he could have given them lessons.

Yet by blacklisting the Haqqani network now, the US may unwittingly be emboldening another group of militant actors, which will complicate the possible troop drawdown in 2014. Indeed, by vilifying the Haqqanis, the Americans have positioned Mullah Omar's Afghan Taliban to come out on top.

A team led by Anatol Lieven, an analyst with the Royal United Services Institute in London, met recently with senior representatives of the Afghan Taliban. According to a summary of that meeting, the Taliban might consider a ceasefire to facilitate talks, and is prepared to discuss a US military stabilisation force operating in Afghanistan for another decade.

This force would be stationed in five primary military bases - Kandahar, Herat, Jalalabad, Mazar-e-Sharif and Kabul - as long as the US presence contributed to Afghan security and did not constrain Afghan independence and Islamic jurisprudence. These bases could also not be used for American attacks against neighbours, such as Iran and Pakistan.

The emphasis on Islamic jurisprudence merely reasserts the Taliban's rejection of the Afghan constitution. But Mullah Omar's group is unlikely to return to the strict form of Wahhabism, the faction that favours a stringent version of Islam. It is far more likely that the Afghan Taliban would favour an equitable, democratic but Islamic judicial system in accordance with tribal customs.

But the real surprise detailed by Mr Lieven is the Taliban's apparent willingness to negotiate a prolonged US presence in Afghanistan. The condition that these bases will not be permitted to be used to stoke unrest in Pakistan and Iran is obviously intended to reassure both neighbours of their concerns, and the Taliban's desire for harmonious relations.

Nonetheless, why would the Afghan Taliban suddenly express an openness to having American troops housed in Afghanistan until 2024 to help ensure stability?

To answer this question, we need to go back to the Haqqanis again.

The Haqqani network is now the largest, most influential and most strategically located of the "Afghan freedom fighters". Were the US to negotiate with all factions, the Haqqanis would have a major political role to play, much greater than Mullah Omar's outfit. Therefore, it suits the Taliban leader to have the Haqqanis excluded. Since the US will not be negotiating the future of Afghanistan with a terrorist-labelled group, any future political dispensation in Afghanistan will not include the Haqqanis.

That explains Mullah Omar's sudden willingness to make a pact with the US. But what is going to be the outcome of this?

There is no doubt the Haqqanis will remain a thorn in the side of Afghanistan post-2014, the previously stated date for the start of an American withdrawal. If a so-called stability force were to stay on after 2014, US forces would be deployed to deal with Haqqani attacks. And if they were deployed their methods of military operation would be no more effective than they are today.

As a consequence, an increasing number of Afghans will again begin to view the post-2014 political dispensation of Afghanistan as "American proxies", and the cycle of violence will keep growing until it either explodes, or the US finally packs up and leaves the region to its chaotic future.

Moreover, Afghans with a dislike for the US, regardless of tribal or ethnic affiliation, will now be more likely to join the Haqqanis. The Haqqanis are continuing to grow in number and they will be the force to reckon with, from here onwards, terrorist label or no.

There is, of course, another possibility: that Mullah Omar will use this offer to the US for an extended stay in Afghanistan as a bargaining chip with the Haqqanis. In such a scenario, Afghan political leaders, pushed by more emboldened militant groups, might then refuse the American request to stay on and force them out, just as the Iraqis did.

In such an eventuality, the internecine political jostling for power could be minimised and a relatively stable Afghanistan might emerge.

Either way, the US loses. And then it will need a scapegoat.

Perhaps that explains why some see the Haqqanis as a "veritable arm" of the ISI.

Brig Shaukat Qadir is a retired Pakistani infantry officer

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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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5 of the most-popular Airbnb locations in Dubai

Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:

• Dubai Marina

The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.

Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739 
Two bedroom: Dh627 to Dh960 
Three bedroom: Dh721 to Dh1,104

• Downtown

Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure.  “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."

Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154

• City Walk

The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena.  “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”

Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809 
Two bedroom: Dh682 to Dh1,052 
Three bedroom: Dh784 to Dh1,210 

• Jumeirah Lake Towers

Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.

Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629 
Two bedroom: Dh549 to Dh818 
Three bedroom: Dh631 to Dh941

• Palm Jumeirah

Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.

Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770 
Two bedroom: Dh654 to Dh1,002 
Three bedroom: Dh752 to Dh1,152 

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