A Gulf-US Summit was held in Riyadh on May 14. Getty Images
A Gulf-US Summit was held in Riyadh on May 14. Getty Images
A Gulf-US Summit was held in Riyadh on May 14. Getty Images
A Gulf-US Summit was held in Riyadh on May 14. Getty Images

Gulf states grow wary after Iran's attack on Qatar tests regional detente


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Just over a week after Iran launched a missile strike on the US-operated Al Udeid Airbase in Qatar, Gulf countries are walking a diplomatic tightrope, voicing concern over Tehran’s actions while carefully keeping the door open for engagement.

The attack, which came in response to US strikes on Iran’s nuclear sites, was publicly condemned by all Gulf capitals. While Tehran described the strike as an act of “self defence” and took precautions to avoid civilian harm, the barrage pierced a long-standing regional red line: direct military action against a Gulf state’s territory.

For many in the region, the strike revived an uncomfortable question: can Iran truly be a partner in regional stability?

Saudi Arabia, the UAE and others have sought closer relations with Iran over recent years in hope of fostering calm. But Iran’s strike in Qatar could undermine efforts by Gulf states to bring Tehran in from the cold, based on the premise that engagement would lead to a more secure region.

Though the 19 missiles caused no casualties or damage to Qatari territory or the airbase, the symbolism was clear. The full-throated condemnations from Gulf states reflected anger, but the absence of further escalation suggests that warming ties with Iran may have been a shock absorber.

“The Iranian attack on Al Udeid Airbase was seen in a negative light by the Gulf countries. Although it was just a performance for local consumption in Iran, the Gulf doesn't want the Iranians to perform at their expense,” Saudi political analyst Ali Shihabi told The National.

“Gulf states were very clearly irritated and wanted to send Iran a strong message that this sort of performance is unacceptable. That said, I believe both the Gulf countries and Iran remain committed to maintaining civilised ties, and that engagement will continue.”

The Saudi-Iran detente, brokered by China in 2023, was always based on fragile trust and a mutual desire to reduce tension. Despite the latest setback, Riyadh is unlikely to abandon the agreement outright. Saudi leaders probably calculate that keeping open communication channels with Tehran still serves their interests.

The detente has yielded tangible dividends: cross-border attacks by Iranian-backed groups on Saudi territory have subsided, and tension in Yemen has eased, allowing Riyadh to focus on domestic priorities, including the economic transformation outlined in Vision 2030.

On Sunday, Saudi Minister of Defence Prince Khalid bin Salman received a phone call from the Iranian Chief of Staff of the Armed Forces, Abdolrahim Mousavi, the Saudi Press Agency reported.

“During the call, they reviewed bilateral relations in the defence field and discussed regional developments, as well as efforts to maintain security and stability,” said the SPA.

Maj Gen Mousavi replaced Mohammad Bagheri, who was killed last month in Israeli strikes as part of the conflict with Iran.

Saudi Foreign Minister Prince Faisal bin Farhan received a written message from his Iranian counterpart regarding bilateral relations and ways to enhance them across all fields, the Saudi Foreign Ministry said in a statement on Wednesday.

From Tehran’s perspective, the attack on Qatar was not intended to damage Gulf relations.

“Fortunately, our relations with our neighbours in the southern … Gulf were not affected by this attack,” a Tehran-based analyst close to the Iranian government told The National. “The necessary co-operation with the state of Qatar took place beforehand. We convinced them that this attack was in no way an attack on the territory and sovereignty of Qatari soil, but a legitimate attack on American interests.”

Iran’s supreme leader Ayatollah Ali Khamenei said that Iran would respond to any future US attack by striking American military bases in the Middle East, in his first televised remarks since a ceasefire was reached between Iran and Israel. He said that his country had “delivered a slap to America’s face”.

A passenger plane flies over Qatar at sunrise on June 24 after a brief closure of the country's airspace. Reuters
A passenger plane flies over Qatar at sunrise on June 24 after a brief closure of the country's airspace. Reuters

China’s role

The latest escalation has also put a spotlight on China’s role. As the mediator of the Saudi-Iran agreement, Beijing had placed itself as a stabilising force in the region. But observers say that its role has remained largely symbolic since the 2023 accord.

“China doesn't seem to have played much of a role in the recent escalations and appears to have adopted a non-interference posture,” said Mr Shihabi. “That may reflect the limits of China’s influence over Iran.”

Zhou Rong, a senior analyst at Renmin University of China, said that Beijing is co-ordinating with Gulf countries, including the UAE, Qatar and Saudi Arabia, to “make things better”.

“China has a positive influence over Iran, but it will help it within its own capacity,” said Mr Zhou. “Beijing may also offer a platform for Iran and Israel to settle tensions through direct talks if needed. China maintains normal – even good – relations with Israel, and even better ones with Iran.”

Last week, Dr Anwar Gargash, diplomatic adviser to UAE President Sheikh Mohamed, said that while Gulf states strongly opposed the Israeli war on Iran and actively worked to de-escalate hostilities, Iran still attacked the sovereignty of Qatar.

“Today, as we turn the page on the war, Tehran remains called upon to restore trust with its Gulf neighbours, which was damaged by this aggression,” Dr Gargash wrote on X.

The Tehran-based analyst said: “Of course, there is work. One of the key elements of Iran's foreign policy agenda is advancing the ‘neighbourhood policy’. And we, as a large nation in the region, are certainly making efforts to address the concerns of our smaller neighbours and strengthen the level of relations, both officially and unofficially."

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Genoa v Sassuolo (9pm)
AS Roma v Torino (11.45pm)

Monday
Bologna v Fiorentina (3.30pm)
AC Milan v Sampdoria (6pm)
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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.”

Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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So what is Spicy Chickenjoy?

Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
 

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The permutations for UAE going to the 2018 World Cup finals

To qualify automatically

UAE must beat Iraq.

Australia must lose in Japan and at home to Thailand, with their losing margins and the UAE's winning margin over Iraq being enough to overturn a goal difference gap of eight.

Saudi Arabia must lose to Japan, with their losing margin and the UAE's winning margin over Iraq being enough to overturn a goal difference gap of eight.

 

To finish third and go into a play-off with the other third-placed AFC side for a chance to reach the inter-confederation play-off match

UAE must beat Iraq.

Saudi Arabia must lose to Japan, with their losing margin and the UAE's winning margin over Iraq being enough to overturn a goal difference gap of eight.

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Updated: July 02, 2025, 1:28 PM