Jordan's King Abdullah receives Saudi Foreign Minister Prince Faisal bin Farhan in Amman. AFP / Jordanian Royal Palace
Jordan's King Abdullah receives Saudi Foreign Minister Prince Faisal bin Farhan in Amman. AFP / Jordanian Royal Palace
Jordan's King Abdullah receives Saudi Foreign Minister Prince Faisal bin Farhan in Amman. AFP / Jordanian Royal Palace
Jordan's King Abdullah receives Saudi Foreign Minister Prince Faisal bin Farhan in Amman. AFP / Jordanian Royal Palace

King Abdullah says Saudi Arabia has kept up support for Jordan


Khaled Yacoub Oweis
  • English
  • Arabic

Saudi Arabia has maintained support for Jordan since a royal rift four months ago, King Abdullah said on Tuesday.

King Salman has been “supportive of the kingdom in the face of all challenges, including the sedition case,” King Abdullah said after meeting Saudi Foreign Minister Prince Faisal bin Farhan in Amman.

Ties between the two countries cooled after the rift came out in the open in March and security forces arrested 17 people the authorities said were involved in seditious activity.

Most prominent among them was Jordanian economist Bassem Awadallah, a senior adviser to King Salman.

Mr Awadallah was a former confidant of King Abdullah and headed the Jordanian Royal Court. He is also a US national and has a Saudi passport.

“The strong relations between Jordan and Saudi Arabia are established and solid and are not shaken by doubt and hearsay,” the official Jordanian news agency quoted King Abdullah as saying.

In June, a secret court sentenced Mr Awadallah, along with a distant cousin of the king, to 15 years in prison on sedition charges they both denied. Security forces had released the 15 other men in March.

Authorities said Mr Awadallah was an associate of Prince Hamzah bin Hussein, a younger half-brother of King Abdullah, who was looking to depose the king.

The prince was not arrested but he has not been seen in public since April 11, when he was photographed with the king.

King Abdullah told CNN while on a visit to Washington last month that although Mr Awadallah has Saudi ties, “we are dealing with this as a domestic problem”.

“Finger-pointing does not help at all. We have enough problems in the region. We need to move forward,” the king said.

During his trip to Amman, Prince Faisal “affirmed Saudi eagerness to shore up co-operation with Jordan”, the Jordanian news agency reported.

Saudi Arabia is a major donor to Jordan.

Along with Kuwait and the UAE, Saudi Arabia deposited at least $1 billion in the Jordanian Central Bank in 2018.

The money transfer came after mass demonstrations that same year against the government as Jordan’s economy deteriorated.

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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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Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

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Updated: August 04, 2021, 5:19 AM