Marco Rubio as US secretary of state signals hardline Middle East policy


Anjana Sankar
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US President-elect Donald Trump is expected to nominate Florida senator Marco Rubio as secretary of state, signalling that the next administration will pursue a hardline approach in the Middle East.

Media reports say Mr Trump will choose Mr Rubio as Antony Blinken’s successor although a decision has yet to be announced officially. Mr Rubio, who was once in the running to be Mr Trump's running mate in the election campaign, has extensive foreign policy experience, sitting as vice chairman on the US Senate intelligence committee and the foreign relations committee.

In the past few years, he has softened some of his views to align more closely with Mr Trump. He would face a volatile world during Mr Trump's second term, with wars in the Middle East, Ukraine and Sudan.

Middle East strategy

Mr Rubio’s staunch support for Israel has been a defining feature of his political career. He has consistently backed military and economic aid to the country while endorsing policies that address Israel’s security concerns. He supported the decision to move the US embassy to Jerusalem in 2018 during Mr Trump’s first spell as president. Mr Rubio has also said Israel's security is the key to solving many issues in the region, including the crisis in Palestine.

At the same time, he has advocated fostering strong ties with Gulf nations. He views relationships with those countries as essential for regional stability and efforts to counter the influence of Iran. A vocal critic of the Tehran regime, Mr Rubio was one of the strongest opponents of the 2015 nuclear deal, negotiated while Barack Obama was president. He supports a policy of maximum economic pressure on Tehran and has said Washington cannot afford to let Iran expand its influence in the region unchecked.

Nadim Houry, executive director of the Arab Reform Initiative think tank, said appointing Mr Rubio would cement a more hawkish stance in Washington. Mr Rubio would probably toe the line on Mr Trump's policies, as he does not have much interest or expertise in the Middle East, Mr Houry added.

“What is most critical to watch would be how he will balance the two crucial US allies in the region – Israel and the Gulf states,” he told The National. “Saudi Arabia has made it clear that it wants the US to do more on the two-state solution for Palestine. But the current Israeli administration clearly does not want that.

“Rubio will be more hawkish on Iran. But we have to wait and see what new leverage he will have to end the war in Gaza.”

Marco Rubio, left, has aligned himself more closely with Donald Trump in recent years. AFP
Marco Rubio, left, has aligned himself more closely with Donald Trump in recent years. AFP

Dr Kristian Alexander, a senior fellow at the Rabdan Security and Defence Institute in Abu Dhabi, said Mr Rubio’s selection reflects confidence from the president-elect that the senator will be loyal and willingly align with his agenda.

“One can expect the State Department to potentially take a more assertive stance than in Trump’s first term, focusing on a mix of diplomacy backed by military strength and economic sanctions,” Dr Alexander told The National.

Trump nominations



On Iran, he said Mr Rubio's "appointment could mean a continuation or even an intensification of Trump’s 'maximum pressure' campaign, with the potential for tighter sanctions or military posturing aimed at curtailing Iran’s regional activities".

"Rubio has been a staunch critic of Iran’s government and has frequently advocated for tough sanctions and measures to limit Iran’s influence in the region," Dr Alexander said. "Given Rubio’s past rhetoric, he might push for a stricter line in engaging Iran, limiting diplomacy and prioritising containment strategies."

Hardline stance on China

Mr Rubio’s appointment would also suggest that Mr Trump intends to double down on his confrontational approach towards China, with intensified economic and diplomatic pressure. Mr Rubio is one of the most vocal critics of Beijing in the Senate and has been at the forefront of efforts to curb China's global influence, describing the country as America’s "biggest adversary”. His hardline stance includes championing legislation to restrict the operations of Chinese companies in the US, particularly in sectors deemed critical to national security.

His criticism extends to human rights, notably the treatment of the Uighurs. Mr Rubio led congressional efforts to impose sanctions on Chinese officials and was himself the subject of sanctions from Beijing in 2020 over his support for protesters in Hong Kong. In 2022, he introduced bipartisan legislation to ban the Chinese social media app TikTok in the US over espionage concerns.

Cautious support for Ukraine

Mr Rubio has been one of the strongest supporters of military aid to Kyiv since Russia's invasion in 2022 and views the issue as vital to US national interests. He has condemned Russia’s incursions into Ukrainian territory and the annexation of Crimea.

But Mr Rubio has also been cautious about long-term financial commitments to Ukraine. “Our goal should be to support Ukraine in a manner that does not drain our resources or harm our alliances,” he told the Senate this year. He has also suggested that a negotiated settlement may be the most realistic way to end the conflict.

National security and defence

Mr Rubio has consistently advocated increased military spending to confront perceived threats from China, Russia and Iran. He believes in maintaining a strong defence posture to protect US interests around the world.

He also wants the US to continue to pursue its counter-terrorism goals abroad and tackle threats from ISIS and Al Qaeda, while forging stronger international partnerships and intelligence co-operation to dismantle terrorist networks.

Dr Alexander said Mr Rubio’s history in Congress has been marked by a “willingness to support military intervention” and a forward-deployed US presence to counter threats from extremist groups.

“Rubio’s influence might steer US policy in the Middle East towards continued support for allies like Saudi Arabia and the UAE in counter-terrorism efforts, while also discouraging any moves to withdraw US forces from critical bases," he said. "This could mean a commitment to maintaining a robust American presence to support regional stability from a US-centric perspective.”

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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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Updated: November 13, 2024, 7:11 AM