Armenia's Foreign Minister Ararat Mirzoyan, left, with Serdar Kilic, Turkey's special envoy for negotiation, at the Antalya Diplomacy Forum hosted by Turkey in March 2022. AP
Armenia's Foreign Minister Ararat Mirzoyan, left, with Serdar Kilic, Turkey's special envoy for negotiation, at the Antalya Diplomacy Forum hosted by Turkey in March 2022. AP
Armenia's Foreign Minister Ararat Mirzoyan, left, with Serdar Kilic, Turkey's special envoy for negotiation, at the Antalya Diplomacy Forum hosted by Turkey in March 2022. AP
Armenia's Foreign Minister Ararat Mirzoyan, left, with Serdar Kilic, Turkey's special envoy for negotiation, at the Antalya Diplomacy Forum hosted by Turkey in March 2022. AP

Turkish and Armenian envoys meet at border for talks on normalisation


Lizzie Porter
  • English
  • Arabic

Armenia and Turkey on Tuesday resumed a push to normalise relations two years after the last meeting between their envoys.

Armenia's representative Ruben Rubinyan and Turkey's special envoy for negotiations Serdar Kilic held talks at the Margara-Alican border crossing between the two countries, which is normally closed.

In a joint statement, the two sides said they agreed to assess requirements for a future rail link at a border crossing between the Turkish town of Akyaka and Akhurik in Armenia, and "to simplify their mutual visa procedures for diplomatic/official passport holders".

The meeting was the fifth to be held since Armenia and Turkey began talks at the beginning of 2022 to end more than three decades of diplomatic estrangement. The process has been complicated by the conflict between Armenia and Turkish ally Azerbaijan over the Nagorno-Karabakh region.

At the last meeting in Vienna in July 2022, the two sides agreed to open their border for crossings by third-country citizens, although the step was never implemented. Passenger flights have been operating between Istanbul and Yerevan since February 2022, a development that also resulted from the normalisation talks.

The delegations said they "reconfirmed the agreements reached at their previous meetings" on Tuesday, but did not set a date for opening the border to foreign citizens.

Both sides are keen in principle to normalise ties, and say they want to do so without preconditions. Turkish officials say their foreign policy aims to minimise issues with neighbouring countries and Turkish firms would probably benefit from direct trade across the land border. Despite domestic opposition, Armenian officials are also seeking better ties with their neighbours.

“Armenia remains committed and makes practical efforts towards normalisation of relations with the neighbours. We are ready to completely normalise relations with Turkey, establish diplomatic relations and open the Armenia-Turkey border,” Armenian Foreign Minister Ararat Mirzoyan said this month.

“We are committed to turning this vision into reality and implementing the agreed steps. We have a healthy dialogue with Turkey.”

Turkey closed its border with Armenia in 1993 over the conflict in Nagorno-Karabakh, which is recognised internationally as part of Azerbaijan, though its predominantly ethnic Armenian population sought to break away from Baku’s control in the 1990s. Azerbaijan's forces took control of the enclave last September, forcing its Armenian population to flee.

Turkey is one of Azerbaijan's closest allies and has provided the nation with military support, including drones.

Turkey once had a significant Armenian minority, but most of the population was driven out or killed in the early 20th century as the former Ottoman Empire collapsed, leading to significant numbers of Armenians resettling in Syria and Lebanon. Armenia has pushed for greater global recognition of what it considers a genocide.

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Section 375

Cast: Akshaye Khanna, Richa Chadha, Meera Chopra & Rahul Bhat

Director: Ajay Bahl

Producers: Kumar Mangat Pathak, Abhishek Pathak & SCIPL

Rating: 3.5/5

COMPANY%20PROFILE
%3Cp%3E%3Cstrong%3EName%3A%20%3C%2Fstrong%3EEjari%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3ERiyadh%2C%20Saudi%20Arabia%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EYazeed%20Al%20Shamsi%2C%20Fahad%20Albedah%2C%20Mohammed%20Alkhelewy%20and%20Khalid%20Almunif%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EPropTech%3Cbr%3E%3Cstrong%3ETotal%20funding%3A%20%3C%2Fstrong%3E%241%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3ESanabil%20500%20Mena%2C%20Hambro%20Perks'%20Oryx%20Fund%20and%20angel%20investors%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%20%3C%2Fstrong%3E8%3C%2Fp%3E%0A
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%3Cp%3EPresident%20Volodymyr%20Zelenskyy%20has%20overseen%20grain%20being%20loaded%20for%20export%20onto%20a%20Turkish%20ship%20following%20a%20deal%20with%20Russia%20brokered%20by%20the%20UN%20and%20Turkey.%3Cbr%3E%22The%20first%20vessel%2C%20the%20first%20ship%20is%20being%20loaded%20since%20the%20beginning%20of%20the%20war.%20This%20is%20a%20Turkish%20vessel%2C%22%20Zelensky%20said%2C%20adding%20exports%20could%20start%20in%20%22the%20coming%20days%22%20under%20the%20plan%20aimed%20at%20getting%20millions%20of%20tonnes%20of%20Ukrainian%20grain%20stranded%20by%20Russia's%20naval%20blockade%20to%20world%20markets.%3Cbr%3E%22Our%20side%20is%20fully%20prepared%2C%22%20he%20said.%20%22We%20sent%20all%20the%20signals%20to%20our%20partners%20--%20the%20UN%20and%20Turkey%2C%20and%20our%20military%20guarantees%20the%20security%20situation.%22%3C%2Fp%3E%0A

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: July 30, 2024, 4:50 PM