Moscow will be held to account on Syrian crisis



How many more innocent civilians must die before the bloodshed in Syria is stopped? Foreign ministers at the UN Security Council in New York are asking themselves a version of that question this week. And yet, there may be only one government in a position to answer, and it's not the one clinging to power in Damascus.

Over the past week, Moscow's objections to a Security Council resolution on Syria turned from an irritant to a deadly obstacle. Hundreds of opposition members have been killed as diplomats dither, adding to the more than 5,400 Syrian deaths since March.

Moscow may not be pulling the trigger, but neither is it doing what it can to halt the bloodshed. Russian Deputy Foreign Minister Gennady Gatilov's claim this week that a resolution would be a "path to civil war" is just the type of circular logic that will ensure the violence continues.

A Security Council resolution alone would not immediately halt the violence, but the absence of one will almost certainly embolden President Bashar Al Assad to continue his brutality. Moscow's very threat of a veto has given Mr Al Assad a sense of misplaced righteousness.

Bungling by the Arab League's observer mission has also given the false impression that the current Syrian regime can weather the international condemnation. That is why a unified voice in New York is so important to ending the crisis.

In truth, Russia may be less opposed to an international solution than it is in favour of protecting its own interests. Russia's ties to the Assads is strong, dating back to the Soviet Union. Moscow's top Middle East arms customer is on the ropes, and the loss of roughly 7 per cent of Russia's defence market is in the crosshairs. As recently as January, Moscow was inking deals for fighter jets worth over $500 million (Dh1.8 billion). A senior official said yesterday there were no plans to halt arms shipments to the rogue regime.

But Moscow's position may be softening. Yesterday, another senior Russian diplomat conceded his country would only veto an "unacceptable" resolution. The task now is to craft a measure that has enough teeth to influence the behaviour of the Assads. If that includes an explicit renunciation of armed foreign intervention, it might be worth the concession.

Capitals from Doha to Washington may take a hard line on Damascus, but it is erstwhile friends that have the most influence. Moscow has real power to curb the bloodshed of innocents, or alternatively to shirk its responsibility.

Bundesliga fixtures

Saturday, May 16 (kick-offs UAE time)

Borussia Dortmund v Schalke (4.30pm) 

RB Leipzig v Freiburg (4.30pm) 

Hoffenheim v Hertha Berlin (4.30pm) 

Fortuna Dusseldorf v Paderborn  (4.30pm) 

Augsburg v Wolfsburg (4.30pm) 

Eintracht Frankfurt v Borussia Monchengladbach (7.30pm)

Sunday, May 17

Cologne v Mainz (4.30pm),

Union Berlin v Bayern Munich (7pm)

Monday, May 18

Werder Bremen v Bayer Leverkusen (9.30pm)

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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Sector: Sustainability
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Number of employees: 4
Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

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Size: four team members

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Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

The specs

Engine: 1.5-litre turbo

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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs: 2018 Chevrolet Trailblazer

Price, base / as tested Dh99,000 / Dh132,000

Engine 3.6L V6

Transmission: Six-speed automatic

Power 275hp @ 6,000rpm

Torque 350Nm @ 3,700rpm

Fuel economy combined 12.2L / 100km