Radical chic: posters of Ahmadinejad, Assad and Nasrallah outside the Sayyida Zeinab Shrine in Damascus.
Radical chic: posters of Ahmadinejad, Assad and Nasrallah outside the Sayyida Zeinab Shrine in Damascus.
Radical chic: posters of Ahmadinejad, Assad and Nasrallah outside the Sayyida Zeinab Shrine in Damascus.
Radical chic: posters of Ahmadinejad, Assad and Nasrallah outside the Sayyida Zeinab Shrine in Damascus.

Margins of error


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Naming things is always the first step in analysing them. After you name them, you put them together in categories, with like things grouped together. Then you can begin to decide how to deal with each of your categories. But if you make a mistake in this process, and put unlike things together because you have misnamed them, you are bound for trouble. This kind of category mistake has plagued American Middle East policy for decades. Washington is fond of dividing the region neatly into two camps: "moderates" and "radicals." President Bush, on his recent trip to the region, emphasised this distinction, but he is hardly the first American president to do so. The radical-moderate divide has been a staple of American views of the Middle East for decades.

The criterion for dividing moderates from radicals for Washington has always been the question: "Are you with us or against us?" During the Cold War, states aligned with the Soviet Union were the radicals and those aligned with the United States were the moderates. After the Cold War, the moderate designation went to those states co-operating with Washington and willing to make peace with Israel. The radicals were no longer pro-Soviet socialists, but Islamists. The 9/11 attacks and the Iraq War hardened that distinction for the Bush Administration.

In Washington's eyes now, the radical camp consists of al Qa'eda, Iran, Syria, Hamas, Hizbollah, Muqtada al Sadr and anyone else who actively opposes the American presence in Iraq and Afghanistan and rejects the Arab-Israeli peace process. One could argue that these governments and groups are radical by definition - in that they seek fundamental changes in the status quo. But aside from their refusal to accept the American-supported political order in the Middle East, they have very little else in common. And there is where the problem for American policymakers begins.

Al Qa'eda is certainly a radical organisation, and a dangerous one, but it is also a marginal organisation. It does not have a mass following. It is not strongly embedded in any society in the Middle East. Where it has appeared, it has alienated even its target constituencies. It can be confronted and defeated through military and police methods without turning large numbers of people against the United States and its allies in the region. We have seen this in Afghanistan, Saudi Arabia, Jordan and now Iraq, where al Qa'eda has lost substantial support among Iraqi Sunni Arabs and is losing ground on the battlefield.

But just because you call both al Qa'eda and Hizbollah radicals does not mean that you can deal with them in the same way. Unlike al Qa'eda, Hizbollah has substantial support among Lebanese Shia. It has important regional allies in Iran and Syria. As events of the past month in Lebanon have proved, it cannot simply be confronted militarily by state authorities. Hizbollah might be radical, in some sense, but it is hardly marginal. The same can be said about Hamas, the Sadrists in Iraq and the governments of Iran and Syria.

The problem with American policy is the notion that all radicals are, almost by definition of their radicalism, marginal as well. Because they are marginal, they cannot possibly have substantial public support. Because they do not have substantial support, they can either be ignored or confronted. But events throughout the region demonstrate that this is not the case, and American policy has suffered a number of setbacks as a result.

The tendency to lump the radicals together - and to treat them all the same - also leads to missed opportunities for engagement. The Syrian government of Bashar al Asad is no friend of Washington. It has facilitated the flow of foreign fighters into Iraq, destabilised Lebanon in a brutal way and allied with Iran. But Damascus also has sought for years to renew its negotiations with Israel over the Golan Heights. In the past, Washington would have supported such a move, which fits perfectly into American strategy in the region. But in the Bush Administration, the designation of Syria as a "radical" has meant that it must be isolated and punished. So Syria and Israel have gone to Turkey, rather than the US, to find a mediator for their negotiations.

The catalogue of recent missed opportunities to find some new basis for dealing with the "radicals" is not limited to Syria. In 2003 the Iranian government of Muhammad Khatami proposed negotiations on a "grand bargain" with the United States. The Bush Administration ignored those feelers, and got Mahmoud Ahmadinejad instead. Muqtada al Sadr declared a ceasefire in August 2007, contributing enormously to the reduction in violence in Iraq over the past 10 months. Instead of building on that, American forces participate in the current military campaign by the Maliki government against the Sadr movement. While Sadr's militia, the Mahdi Army, might be in retreat in the face of this campaign, it would be a profound mistake to imagine that his political movement can be made marginal.

If grouping together such disparate actors in the "radical" camp leads to policy errors, belief that the "moderate" camp is a cohesive unit that can confront the radicals is sheer wishful thinking. A key element of this moderate coalition for the Bush Administration, the Iraqi government, is as closely allied to the Iranians as some of the radicals. As long as the Palestinian issue remains unsettled, Arab governments cannot openly co-operate with Israel, no matter how much they all regard Iran as a threat. Some of the moderates are substantial players with real assets to be deployed. Others, like the Lebanese and Palestinian governments, are weak reeds. And none of them like to be lectured about their domestic political failings, as President Bush did in Sharm el Shaikh in May.

It is notable that many of the moderates are already engaging the radicals directly. Egypt is mediating between Israel and Hamas. Israel is dealing with Syria through Turkey. Qatar, which houses a large American military base, hosted the negotiations between Hizbollah and the Lebanese government. The Iraqi government turned to Iran to mediate its agreement with the Sadrists in Basra. That should tell the Bush Administration something.

It would be naive to think that the problems facing policymakers in the Middle East can be solved by a better classification scheme of its friends and rivals. Whatever Washington calls Iran, it will still be a challenge. But the first step toward good policy is to understand the ground realities. That means treating different actors differently, even if all those actors are united in their dislike for you. It means abandoning binary categories and easy oversimplifications, even if they look good in a PowerPoint presentation or sound good in a presidential speech.

It means substituting subtlety and a longer view for moralistic rhetoric about good guys and bad guys. It means realising that a skilful and patient strategy which mixes firmness, openness and an opportunistic sense of the moment might be able to shift some of those bad guys into the other column. F Gregory Gause is is an associate professor of political science at the University of Vermont and director of the University's Middle East studies program.

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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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Sri Lanka v England

First Test, at Galle
England won by 211

Second Test, at Kandy
England won by 57 runs

Third Test, at Colombo
From Nov 23-27

Day 3, Dubai Test: At a glance

Moment of the day Lahiru Gamage, the Sri Lanka pace bowler, has had to play a lot of cricket to earn a shot at the top level. The 29-year-old debutant first played a first-class game 11 years ago. His first Test wicket was one to savour, bowling Pakistan opener Shan Masood through the gate. It set the rot in motion for Pakistan’s batting.

Stat of the day – 73 Haris Sohail took 73 balls to hit a boundary. Which is a peculiar quirk, given the aggressive intent he showed from the off. Pakistan’s batsmen were implored to attack Rangana Herath after their implosion against his left-arm spin in Abu Dhabi. Haris did his best to oblige, smacking the second ball he faced for a huge straight six.

The verdict One year ago, when Pakistan played their first day-night Test at this ground, they held a 222-run lead over West Indies on first innings. The away side still pushed their hosts relatively close on the final night. With the opposite almost exactly the case this time around, Pakistan still have to hope they can salvage a win from somewhere.

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Cast: Rajkummar Rao, Shraddha Kapoor, Pankaj Tripathi, Aparshakti Khurana, Abhishek Banerjee
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Desert Warrior

Starring: Anthony Mackie, Aiysha Hart, Ben Kingsley

Director: Rupert Wyatt

Rating: 3/5

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Company name: BorrowMe (BorrowMe.com)

Date started: August 2021

Founder: Nour Sabri

Based: Dubai, UAE

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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

MATCH INFO

BRIGHTON 0

MANCHESTER UNITED 3

McTominay 44'

Mata 73'

Pogba 80'

Results

5pm: Reem Island – Conditions (PA) Dh80,000 (Turf) 1,600m; Winner: Farasah, Antonio Fresu (jockey), Musabah Al Muhairi

5.30pm: Sir Baniyas Island – Maiden (PA) Dh80,000 (T) 1,400m; Winner: SSR Ghazwan, Antonio Fresu, Ibrahim Al Hadhrami

6pm: Wathba Stallions Cup – Handicap (PA) Dh70,000 (T) 1,400m; Winner: Astral Del Sol, Sean Kirrane, Ibrahim Al Hadhrami

6.30pm: Al Maryah Island – Maiden (PA) Dh80,000 (T) 2,200m; Winner: Toumadher, Dane O’Neill, Jaber Bittar

7pm: Yas Island – Handicap (PA) Dh80,000 (T) 2,200m; Winner: AF Mukhrej, Tadhg O’Shea, Ernst Oertel

7.30pm: Saadiyat Island – Handicap (TB) Dh80,000 (T) 2,400m; Winner: Celestial Spheres, Gary Sanchez, Ismail Mohammed

UAE currency: the story behind the money in your pockets
Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

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The alternatives

• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.

• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.

• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.

2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.

• PayPal is probably the best-known online goods payment method - usually used for eBay purchases -  but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.

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Scores:

Day 4

England 290 & 346
Sri Lanka 336 & 226-7 (target 301)

Sri Lanka require another 75 runs with three wickets remaining

How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

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