Polish Foreign Minister Zbigniew Rau met with the members of the Contact Group for the Crisis in Ukraine established in the framework of the League of Arab States. The talks focused on the Russian invasion in Ukraine and international measures to bring it to an end. Photo: Bartosz Peterman / MSZ
Polish Foreign Minister Zbigniew Rau met with the members of the Contact Group for the Crisis in Ukraine established in the framework of the League of Arab States. The talks focused on the Russian invasion in Ukraine and international measures to bring it to an end. Photo: Bartosz Peterman / MSZ
Polish Foreign Minister Zbigniew Rau met with the members of the Contact Group for the Crisis in Ukraine established in the framework of the League of Arab States. The talks focused on the Russian invasion in Ukraine and international measures to bring it to an end. Photo: Bartosz Peterman / MSZ
Polish Foreign Minister Zbigniew Rau met with the members of the Contact Group for the Crisis in Ukraine established in the framework of the League of Arab States. The talks focused on the Russian inv

Arab League delegation in Poland after offering Russia-Ukraine mediation


Hamza Hendawi
  • English
  • Arabic

Live updates: follow the latest news on Russia-Ukraine

A delegation of Arab League foreign ministers led by the organisation’s chief arrived in Poland on Tuesday after visiting Russia where they offered to mediate between the two warring nations.

The war has had a devastating financial impact on some Arab nations, particularly Egypt, Sudan, Lebanon and Tunisia, because of their heavy reliance on wheat imports from Russia and Ukraine.

Other regional countries including Iraq, Syria and Jordan have also seen food import bills surging, or have been affected by other commodity price rises.

The delegation, led by Arab League Secretary-General Ahmed Aboul Gheit and foreign ministers and senior officials from Egypt, Sudan, Algeria, Jordan and the UAE — the current Arab member of the UN Security Council — flew to Warsaw from Moscow where they held talks with Foreign Minister Sergey Lavrov.

They met Ukrainian Foreign Minister Dmytro Kuleba on Tuesday.

Egypt's Foreign Minister Sameh Shoukry, left, Secretary General of the League of Arab States Ahmed Aboul Gheit, right, and Russian Foreign Minister Sergey Lavrov, centre, during a news conference in Moscow. EPA
Egypt's Foreign Minister Sameh Shoukry, left, Secretary General of the League of Arab States Ahmed Aboul Gheit, right, and Russian Foreign Minister Sergey Lavrov, centre, during a news conference in Moscow. EPA

The Jordanian Foreign Ministry said they discussed “Arab efforts to resolve the Ukrainian crisis and review Poland’s measures to facilitate the transit of Arab citizens who fled Ukraine.”

Many Arabs residing in Ukraine have complained of ill treatment by Polish authorities on the border with Ukraine, with some left stranded in the region for days.

Russia’s invasion of its neighbour in February has disrupted already fragile global supply chains, driving up energy and food prices. Combined, the effects of the war have fuelled inflation across the globe, including in many Arab countries, where it has also disrupted the delicate and politically-sensitive food balance.

Other mediation attempts by countries such as France, Israel and Turkey have so far failed to make any progress.

But the Arab League's record in mediating an end to conflicts in its region does not compare well, in part due to the intractable nature of many regional conflicts which have run across political, tribal, ethnic and religious lines.

However, the Arab League’s mediation offer carries some weight because its members have extensive and complex economic and political ties with the two nations and its readiness to search for a diplomatic solution to the conflict reflects a genuinely serious concern in the region over the effects of a prolonged war.

The Arab League also wants to see the conflict end because, analysts say, it has shifted international attention away from pressing regional issues like Iran’s menacing role in the area, the turmoil in Libya, Lebanon’s worsening economy and the Arab-Israeli conflict.

Of the 22 member states of the Arab League, Egypt, Lebanon, Syria, Libya and Tunisia are the biggest wheat importers and the hardest hit by the spike in its price since the war broke out.

Egypt is perhaps the most potent example of an Arab country hit hard by the war.

As the world’s largest wheat importer, bringing in around 13 million tonnes last year — Egypt normally secures 80 per cent of its wheat from Russia and Ukraine.

To weather the fallout from the war, Egypt has banned the export of wheat for three months, devalued its currency by 14 per cent, raised key interest rates and started talks with the IMF on securing a possible aid package to help it get through the crisis.

Western sanctions slapped on Russia after its invasion of Ukraine also leave Egypt’s years-long procurement of weapons from Moscow in limbo and throw into doubt Cairo’s plans for Russia to build its first nuclear power station.

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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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Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
If you go

The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road. 

The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
 

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Tuesday
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Spartak Moscow v Liverpool
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Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
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Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
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Founded: 2013

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Sector: IT

Employees: 100

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The more serious side of specialty coffee

While the taste of beans and freshness of roast is paramount to the specialty coffee scene, so is sustainability and workers’ rights.

The bulk of genuine specialty coffee companies aim to improve on these elements in every stage of production via direct relationships with farmers. For instance, Mokha 1450 on Al Wasl Road strives to work predominantly with women-owned and -operated coffee organisations, including female farmers in the Sabree mountains of Yemen.

Because, as the boutique’s owner, Garfield Kerr, points out: “women represent over 90 per cent of the coffee value chain, but are woefully underrepresented in less than 10 per cent of ownership and management throughout the global coffee industry.”

One of the UAE’s largest suppliers of green (meaning not-yet-roasted) beans, Raw Coffee, is a founding member of the Partnership of Gender Equity, which aims to empower female coffee farmers and harvesters.

Also, globally, many companies have found the perfect way to recycle old coffee grounds: they create the perfect fertile soil in which to grow mushrooms. 

Updated: April 06, 2022, 5:17 AM