Talks to restore ties between Turkey and Syria began on Monday in Russia, with the presence of Iranian officials, in a bid to push forward with reconciliation efforts, but experts predict this is merely the start of a lengthy process.
“The process of engagement with Syria has started under the hosting and facilitations of Russia, later Iran joined the process … a quadripartite meeting on the level of deputy foreign ministers will be held on April 3-4 in Moscow,” Turkey’s Foreign Minister Mevlut Cavusoglu told reporters at the Turkevi Centre in New York.
The deputy foreign ministers' meeting is the prelude to planned talks between the foreign ministers of Turkey, Syria, Iran and Russia.
Russia, which along with Iran has supported Syria's President Bashar Al Assad in the civil war that started in 2011, has been pushing for reconciliation between Damascus and Ankara for months.
Russian Foreign Minister Sergey Lavrov is expected to visit Turkey on Thursday for talks on Syria, Libya and other regional issues, Mr Cavusoglu said.
The Turkish Foreign Minister said his Iranian counterpart Hossein Amirabdollahian had requested to join the talks between Turkey, Syria and Russia, and Ankara agreed.
“Astana is the only surviving format [to address] Syria anyway,” Mr Cavusoglu told a joint news conference with Mr Amirabdollahian last month, referring to peace talks in Kazakhstan's capital.
“Now we are planning a meeting between the four foreign ministers.”
Moscow has been pushing for meetings between Syria and Turkey's foreign ministers and eventually their presidents.
In December, it hosted talks between the two countries' defence ministers.
Turkey and Syria each accuse the other of supporting terrorists that threaten cross-border security.
Last year, Turkish President Recep Tayyip Erdogan signalled that he was ready to meet his Syrian counterpart in a trilateral summit with Russia. Russia has been Mr Al Assad's biggest backer during the 12-year civil war.
The meeting in Moscow holds a symbolic importance that heralds a new era between Turkey and Syria because for a long time, there was no engagement, Sinan Ulgen, director of Istanbul's Edam think tank and a senior fellow at Carnegie Europe in Brussels, told The National.
“The agenda will essentially be to clarify the conditions for future negotiations and to ultimately proceed with normalisation between the two,” he said.
As to Moscow's involvement, Mr Ulgen, a former Turkish diplomat, said that it shows that Russia “is an influential player with regards to the politics of Syria, given that it was Russia who facilitated this meeting”.
He said the talks were the first step in what is “likely going to be a difficult and long-term challenge of the Turkey-Syria dialogue”.
Turkey is participating partially at the urging of Moscow, which wants Ankara to address its concerns and priorities in Syria through engagement with the Assad regime, said Galip Dalay, a Turkey analyst at Chatham House.
“This is a win for Russia; it wants to play a role by facilitating talks between Syria and Turkey,” Mr Dalay told The National.
Turkey-Syria sticking points
Trust between the two sides is low and both are likely to table several demands. One of the major points of contention is Turkey's military presence in Syria.
Damascus has been urging Ankara to withdraw from its territory but it is unlikely to do so for security reasons, Mr Dalay said.
Mr Ulgen said Ankara would want “reassurance from the Syrian side that if it withdraws from these zones it will not be used against the security interest of Turkey”.
These security guarantees will have to be negotiated during the talks.
Turkey's support for Syrian opposition groups has also created friction. For years. Ankara has backed the opposition's calls for regime change and an overhaul of the political system in Syria.
“The support of these groups is an issue which continues till this day,” Mr Ulgen said.
The safe return of Syrian refugees is another sticking point.
Turkey, which hosts an estimated four million Syrian refugees, wants assurances from Mr Al Assad regarding their return.
“We are heading towards Turkish elections and the refugee question overall is an item in Turkish polls. The government hopes that it can send back at least a fraction of the refugees in Turkey through these talks,” Mr Dalay said.
He said that, for Mr Erdogan's government, it “gives the image of taking this issue seriously as demanded by the popular level”.
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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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FTO designations impose immigration restrictions on members of the organisation simply by virtue of their membership and triggers a criminal prohibition on knowingly providing material support or resources to the designated organisation as well as asset freezes.
It is a crime for a person in the United States or subject to the jurisdiction of the United States to knowingly provide “material support or resources” to or receive military-type training from or on behalf of a designated FTO.
Representatives and members of a designated FTO, if they are aliens, are inadmissible to and, in certain circumstances removable from, the United States.
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Source: US Department of State
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