Left to right, Saudi Minister of Foreign Affairs Faisal bin Farhan, Iraqi Foreign Minister Fuad Hussein, Secretary General of the Arab League Ahmed Aboul Gheit, Egyptian Foreign Minister Sameh Shoukry, Jordanian Foreign Minister Ayman Safadi, and Lebanese Foreign minister Abdullah Bou Habib at the Ministry of Foreign Affairs in Cairo. EPA
Left to right, Saudi Minister of Foreign Affairs Faisal bin Farhan, Iraqi Foreign Minister Fuad Hussein, Secretary General of the Arab League Ahmed Aboul Gheit, Egyptian Foreign Minister Sameh Shoukry, Jordanian Foreign Minister Ayman Safadi, and Lebanese Foreign minister Abdullah Bou Habib at the Ministry of Foreign Affairs in Cairo. EPA
Left to right, Saudi Minister of Foreign Affairs Faisal bin Farhan, Iraqi Foreign Minister Fuad Hussein, Secretary General of the Arab League Ahmed Aboul Gheit, Egyptian Foreign Minister Sameh Shoukry, Jordanian Foreign Minister Ayman Safadi, and Lebanese Foreign minister Abdullah Bou Habib at the Ministry of Foreign Affairs in Cairo. EPA
Left to right, Saudi Minister of Foreign Affairs Faisal bin Farhan, Iraqi Foreign Minister Fuad Hussein, Secretary General of the Arab League Ahmed Aboul Gheit, Egyptian Foreign Minister Sameh Shoukry

Five nation committee meets in Cairo to discuss Syria normalisation


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Members of an Arab five-nation committee set up to oversee the regional normalisation with Syria said on Tuesday that they were keen to resolve the civil war in the country, hinting at the need of cooperation from Damascus.

The foreign ministers of committee members Egypt, Iraq, Saudi Arabia, Lebanon and Jordan met Syrian minister Faisal Mekdad in Cairo.

The Secretary General of the Arab League, Ahmed Aboul Gheit, also took part in the meeting.

Part of the mandate of the Arab League's liaison committee is to ensure the preservation of Syria’s “unity and territorial integrity”, while working to end the 12-year war in the country in all its “political, economic and humanitarian dimensions”, Egyptian Foreign Minister Sameh Shoukry said in a statement.

A final statement issued after the meeting said Mr Mekdad briefed the five ministers on efforts by his government to encourage the return home of refugees, determining the fate of the missing and reviving the country's troubled economy.

"The committee encourages the Syrian government to continue the steps and measures taken to deal with all the consequences of the Syrian crisis so as to fulfil the aspirations of the Syrian people in pulling through the relevant challenges and move to a better future," it said.

Jordan’s Foreign Minister Ayman Safadi met Mr Mekdad on the sidelines of the meeting. The pair addressed issues of priority between the two states, Jordan’s state news agency Petra said.

They also discussed “step by step” how to resolve the Syrian crisis, Petra reported.

This month, Jordan seized a stash of drugs along its border with Syria as part of a campaign by Jordanian authorities to stop large amounts of narcotics being smuggled into the kingdom from areas under the control of the Syrian regime.

Syrian President Bashar Al Assad’s government was invited to the Arab League summit in May as part of a normalisation process, after Damascus was expelled from the body in 2011.

The US has stood against thawing ties with Syria, with President Joe Biden repeating his position that Syria has taken actions to “support terrorism”.

But the Arab League has said that ostracising Syria has done little to resolve any of the country’s crises.

Saudi Arabia’s Foreign Minister Prince Faisal bin Farhan also held a one-on-one meeting with Mr Mekdad.

They discussed the “latest developments in Syria and the region,” according to the Saudi state news agency.

Mr Shoukry also met separately with the Syrian and Saudi ministers.

The Egyptian Foreign Ministry said Mr Shoukry told Mr Mekdad the committee would “offer a helping hand to the brotherly Syrian people to pull through their predicament”.

Syria's expulsion from the Cairo-based Arab League was in response to the government's violent suppression of peaceful, anti-regime protests.

The pro-democracy demonstrations soon developed into a civil war in which militants fought government troops and allied militias.

Several Arab countries later moved to improve ties with Mr Al Assad. These included lifting restrictions on trade with Syria and resuming diplomatic ties.

Syria's President Bashar Al Assad is calling for funds for support against western sanctions. AFP
Syria's President Bashar Al Assad is calling for funds for support against western sanctions. AFP

The normalisation process was accelerated after a Chinese-brokered detente in March between Saudi Arabia and Iran, Mr Al Assad’s main regional supporter.

Iran has sent billions of dollars' worth of crude oil to Damascus over the past decade and supervised proxy Shiite militias fighting on the government's side.

Iran's military and material support to Damascus have been crucial to the political survival of Mr Al Assad in the civil war.

Assad blames Arab countries for chaos

In an interview with Sky News Arabia last week, Mr Al Assad blamed Arab countries he did not name for what he called chaos in Syria, including a booming trafficking industry in the amphetamine known as Captagon, as well as other drugs.

The narcotics are mainly smuggled from areas under Mr Al Assad’s control in southern Syria to Jordan and then to Saudi Arabia. Arab officials say the illicit business is worth billions of dollars a year.

Syrian political commentator Aymen Abdelnour said despite different motives for Arab countries to accommodate Mr Al Assad, none appear to have met his main quest for aid, despite economic collapse in regime areas.

Mr Abdelnour said Mr Mekdad would adopt a more conciliatory tone at the Cairo meeting.

“The regime is bankrupt,” Mr Abdelnour said. “Even its supporters are starting to protest [over] the misappropriation of resources and meagre salaries and food.

“They are not complaining about lack of freedom or lack of dignity. Nonetheless it is worrying for the regime because it raises tension in its own areas,” he said, referring to Mr Al Assad’s core support areas in the Alawite Mountains on the coast.

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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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Updated: August 16, 2023, 6:55 AM