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Diplomatic efforts have intensified in anticipation of retaliation by Iran and its ally Hezbollah against Israel, aiming to ensure that the response does not lead to a major escalation in the Middle East.
Last week’s assassinations of Hamas chief Ismail Haniyeh in Tehran and senior Hezbollah military commander Fouad Shukr in Beirut have put the region on high alert and raised fears of an expansion of the current conflict into an all-out war.
Mr Shukr and an Iranian military associate were killed in an Israeli strike on a densely populated neighbourhood in Beirut's southern suburbs on Tuesday night. Three women and two children were also killed and dozens were injured.
Hours later, Mr Haniyeh was killed in an explosion at his residence in Tehran after attending the inauguration of Iran's President Masoud Pezeshkian.
Israel has acknowledged carrying out the drone strike that killed Mr Shukr but not the attack that killed Mr Haniyeh. Hezbollah and Tehran have vowed to avenge both and attack Israel.
The region is already experiencing the Israeli war in Gaza, which has escalated into a regional conflict involving states and militant groups from Yemen and Iraq to Lebanon and Syria.
“Everyone is trying to avoid the big explosion. The Lebanese government is in touch with western and Arab capitals to assess recent developments,” a Lebanese political source told The National.
Last April, Iran launched an unprecedented drone and missile barrage against Israel in a retaliatory strike to an April 1 attack on its Damascus consular section. Two senior generals were killed in the strike, which Tehran blamed on Israel.
US Secretary of State Antony Blinken informed G7 counterparts that Iran and Hezbollah could launch attacks on Israel as soon as Monday, according to an Axios report that quoted three sources.
Mr Blinken held a conference call to co-ordinate with US partners to put pressure on Iran and Hezbollah to reduce the scale of any retaliation.
Political sources in Beirut told The National last week that the militant group and its allies in Lebanon have been indirectly offered “incentives” by western envoys to ensure that the retaliation does not lead to a full-scale war.
Two killed in Lebanon
Amid fears of escalation, the US urged its citizens to leave Lebanon and bolstered its military presence in the Middle East as a preventive measure. White House National Security Council spokesman Jonathan Finer stated the goal is to reduce regional tensions, deter attacks, and avoid broader conflict.
In a phone call with Israeli Minister of Defence Yoav Gallant, US Secretary of Defense Lloyd Austin discussed his country’s “defensive force posture moves” and the focus on “protecting US forces”.
He also “stressed the importance of continuing efforts to de-escalate tensions in the region” and expressed his support for a Gaza ceasefire deal that brings the hostages home,” according to a US statement.
On Sunday, Jordanian Foreign Minister Ayman Safadi discussed Middle East tensions with Iranian officials in Tehran. The last time a senior Jordanian official travelled to Iran on an official visit was in 2004.
His discussions began shortly after Jordan cautioned that it would not become a battleground in any conflict between Iran and Israel.
Mr Safadi told Iranian state television that his visit was for a “brotherly dialogue” to bypass the differences between the two countries, and that Jordan wants “the [regional] escalation to end”.
Jordan has close security co-operation with Israel and the US.
“I am not here [to carry] a message to Israel, and I am not here [to carry] a message by Israel,” he said.
Iran's acting Foreign Minister Ali Bagheri Kani and Bahrain's Foreign Minister Abdullatif Al Zayani spoke by phone about ways to de-escalate regional tensions, Bahraini news agency BNA reported.
“During the call, views were exchanged on efforts aimed at reducing tensions in the region and preventing the conflict from expanding, given its serious repercussions on regional peace, security, stability and the interests of the civilians,” said BNA.
Meanwhile, Hezbollah and Israeli attacks continued.
Israeli air strikes killed two people on Monday in Meiss El Jabal village in southern Lebanon, according to the Lebanese National News Agency. One of the victims was a paramedic, said the agency, which quoted Lebanese emergency services.
Hezbollah announced it launched a drone attack on northern Israel that the Israeli military said wounded two Israeli troops and set off a fire. The group said it targeted a military base in northern Israel in response to “attacks and assassinations” carried out by Israel in several villages in south Lebanon.
The Israeli military said fire services were working to put out a fire that was ignited as a result of the attack in Ayelet HaShahar.
Analysts say in a potential conflict, Israel could launch thousands of airstrikes against targets in Lebanon, many of them in civilian populated areas, in a short space of time.
The basis for this assessment is Israeli officials' own threats, and the war in Gaza where Israel dropped nearly 30,000 bombs in the first six weeks, as well as a 34-day war between Israel and Hezbollah.
In the 2006 war, Israel’s air force struck 7,000 targets, mostly in civilian-populated areas hitting villages, bridges, power plants, city neighbourhoods, and Beirut airport. Hezbollah drone and rocket launching sites were also targeted, almost entirely in southern Lebanon.
Israel is also expected to launch a ground invasion of southern Lebanon in a new war.
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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.”
UK’s AI plan
- AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
- £10bn AI growth zone in South Wales to create 5,000 jobs
- £100m of government support for startups building AI hardware products
- £250m to train new AI models
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If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
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Engine: 5.2-litre twin-turbo V12
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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.
Tewellah by Nawal Zoghbi is out now.
The biog
Age: 23
Occupation: Founder of the Studio, formerly an analyst at Cleveland Clinic Abu Dhabi
Education: Bachelor of science in industrial engineering
Favourite hobby: playing the piano
Favourite quote: "There is a key to every door and a dawn to every dark night"
Family: Married and with a daughter
Hili 2: Unesco World Heritage site
The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.