Iraq crisis needs a proper response from this region



One of the facts exposed by recent events in Iraq is that the Gulf states have no strategy for addressing the troubles pulsing dangerously through that country beyond “wait and see”.

These Arab countries are suddenly facing unprecedented challenges in Iraq: insurgents have eradicated the border with Syria, reached the Kurdish region and are marching towards Baghdad. More importantly, the swift advances led by the Islamic State of Iraq and Levant (ISIL) have made the group even more alluring in the region. This fact could pose many potential security challenges for the region itself. On the other hand, the government of Nouri Al Maliki has called on “volunteers” and is closely coordinating with Iran to fend off Sunni insurgents.

Meanwhile, the Gulf states find themselves with little influence, connection or relevance in Iraq – whether among the insurgents or in the government – and opposing both sides.

In statements, Qatar and Saudi Arabia have blamed Mr Al Maliki for the rising sectarian tensions in Iraq. But they have equal and deep concerns about the groups that took over Sunni areas, including non-ISIL groups.

In a sense, while the focus has been on the merging of American and Iranian interests, the Gulf interests are not that far from those in Washington. But this crisis should also serve as a warning for the Gulf states that if they stand idly by, Iraq will become an increasingly worrisome neighbour who will be harder to engage.

So, what can the Gulf states do to change that reality?

The answer lies in a gradualist approach that starts with engaging individuals and groups that some Gulf countries may have concerns about, but who, in reality, pose less immediate risks. While ISIL has a leading role in the takeover, there are groups that represent the local interests of Sunni Iraqis, ranging from neo-Baathists to Islamists. These groups joined the rebellion against the Maliki government but many of them had also previously fought Sunni extremists and expelled them from their areas.

These groups play a role and have to be engaged. The alternative is unthinkable: as we have seen in Syria, ISIL will try to eliminate its direct and potential opponents and attempt to reign supreme. So, there is really no choice under the current circumstances but to engage and strengthen the role of these groups, notwithstanding whatever long-term concerns exist about them.

Also, it is imperative for the Gulf states to effectively communicate to those outside powers who have an interest in stabilising Iraq that the reality in Sunni areas is more nuanced than simply that ISIL has taken control of these territories.

Ignoring this dynamic – that other groups are involved – will lead countries such as the United States to support solutions that will exacerbate the situation and entrench the grievances that were the root cause of the current crisis in the first place.

One such misguided solution is the suggestion that the US will work with Iran to fight the Sunni insurgents. Practically speaking, aside from the Gulf-Iran rivalry, an Iranian involvement other than to pressure Mr Al Maliki will only fuel tensions within Iraq. And that will only make matters worse.

This gradualist approach requires, above all, Gulf unity. The current situation in Iraq is a double whammy for the Gulf states, as it makes the task of stabilising Syria even more daunting. They now have two important Arab countries falling into chaos, and securing these two territories requires an interconnected solution. Unfortunately, the Gulf states do not yet have a clear-cut strategy to fix them.

But that does not mean they can’t work to develop one. The challenge Iraq presents should push the Gulf countries to work together to contain it. Qatar, for example, has links to individuals and groups in Sunni areas. Saudi Arabia, while it may not know these groups, should work with Qatar on the containment of the situation in northern Iraq. Such a pragmatic trade-off would be better than an inflexible approach to the region’s problems.

One also senses that there is an apathy in terms of policies in the Gulf towards Iraq, perhaps because of three main reasons: the country is a danger that they accommodated and contained for decades since Saddam Hussain assumed control of the country; it is too complicated to be resolved, and a strong Iraq might be perceived as a potential danger to the Gulf.

But as the current crisis shows, Iraq has become a multilayered problem that the Gulf states ignore at their peril. It is in Iraq where Iran is now pushing for a geopolitical realignment at the expense of the Gulf. It is in Iraq where the worst jihadist group is growing and it is in Iraq where Shiite jihadists, a phenomenon unheard of before, are polarised, recruited and trained. If these trends do not alarm the Gulf to move more actively to defend their interests, what will?

Hassan Hassan is an analyst with the Delma Institute, a research centre in Abu Dhabi

On Twitter: @hhassan140

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How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

How tumultuous protests grew
  • A fuel tax protest by French drivers appealed to wider anti-government sentiment
  • Unlike previous French demonstrations there was no trade union or organised movement involved 
  • Demonstrators responded to online petitions and flooded squares to block traffic
  • At its height there were almost 300,000 on the streets in support
  • Named after the high visibility jackets that drivers must keep in cars 
  • Clashes soon turned violent as thousands fought with police at cordons
  • An estimated two dozen people lost eyes and many others were admitted to hospital 

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An additional 450,000 shrubs and 4,000 trees to be delivered in the months leading up to the expo

Ghaf, date palm, acacia arabica, acacia tortilis, vitex or sage, techoma and the salvadora are just some heat tolerant native plants in the nursery

Approximately 340 species of shrubs and trees selected for diverse landscape

The nursery team works exclusively with organic fertilisers and pesticides

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Plants and trees are re-potted when they arrive at nursery to give them room to grow

Some mature trees are in open areas or planted within the expo site

Green waste is recycled as compost

Treated sewage effluent supplied by Dubai Municipality is used to meet the majority of the nursery’s irrigation needs

Construction workforce peaked at 40,000 workers

About 65,000 people have signed up to volunteer

Main themes of expo is  ‘Connecting Minds, Creating the Future’ and three subthemes of opportunity, mobility and sustainability.

Expo 2020 Dubai to open in October 2020 and run for six months

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Name: Kumulus Water
 
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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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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