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Gulf countries on Thursday urged the lifting of international sanctions on Syria as the new administration in Damascus that replaced the former regime seeks to assert its authority.
The call was issued at the end of an extraordinary meeting for the ministers of foreign affairs of the Gulf Co-operation Council in Kuwait to discuss recent developments in Syria and Lebanon.
The US, the EU, Canada and other countries imposed severe sanctions against the regime of former president Bashar Al Assad in response to his violent crackdown on protests from 2011 onwards and actions in the ensuing civil war. Some western sanctions date back even further, to when Mr Al Assad's father Hafez was in power.
Countries are now considering when to lift restrictions after Hayat Tahrir Al Sham (HTS) led a rebel advance that ended decades of rule by the Assad family. Complicating the matter is HTS's designation as a terror group by the US, UN and other entities.
"To empower Syria economically, the Ministerial Council called for lifting sanctions on it, and called on all partners, countries and concerned organisations to provide all means of support to the brotherly Syrian people," the six Gulf countries said in a statement after the meeting.
The US has imposed sanctions on 718 people and entities in connection to Syria, and the State Department has hinted that it could use those measures to encourage what it considers to be good behaviour from HTS and whatever governing body is formed to lead Syria.
Last week, discussions to possibly lift EU sanctions against Syria were under way but are unlikely to resolve soon, Germany's special envoy to Syria, Stefan Schneck, told The National.
Gulf ministers urged all parties in Syria to "launch a comprehensive national dialogue to achieve the aspirations of the brotherly Syrian people for security, stability, development, and prosperity".
They also issued a firm call for Israel to withdraw from the Syrian lands it recently occupied after taking advantage of a security vacuum following the collapse of the former regime.
“Israel's attacks on Syria and occupation of the buffer zone are a flagrant violation of international laws and Security Council resolutions,” the Secretary General of the Gulf Co-operation Council Jasem Al Budaiwi said.
Since the collapse of president Bashar Al Assad’s regime this month, Israel has bombed hundreds of weapons sites, airbases and naval assets in Syria and sent troops into a buffer zone in the occupied Golan Heights. Israeli officials have called the incursion a limited and temporary measure to ensure the security of Israel’s borders but have not indicated when the troops will be withdrawn.
“We call on the international community to stop Israel's violations and withdraw from all Syrian territories,” stressed Mr Al Budaiwi.
Last week, UN Secretary General Antonio Guterres said Israeli strikes on Syrian military infrastructure are in breach of the country’s sovereignty after Israeli Prime Minister Benjamin Netanyahu said that his country would remain inside the UN-patrolled buffer zone, established in 1974, “until another arrangement can be found that guarantees Israel’s security”.
Israel now appears to be gearing up for an open-ended occupation of the Syrian territory it invaded, with senior officials hinting that long-term military control of the area is vital for national security.
Israeli Deputy Foreign Minister Sharren Haskel described Hayat Tahrir Al Sham leader Ahmad Al Shara, whose troops led the overthrow of Mr Al Assad, as “a wolf in [sheep’s] clothing”, in some of the most direct comments yet from the Israeli government about Syria’s new leadership.
HTS was formerly affiliated with Al Qaeda and is designated as a terrorist organisation by the UN and many governments. Despite statements from its leadership suggesting the group does not want to fight Israeli troops, concerns remain high in Israel that post-Assad chaos in Syria could lead to the emergence of a destabilising government on its borders.
The rebel group has been trying to consolidate its power since the takeover of Damascus on December 8 and has announced plans to form an inclusive administration.
“National reconciliation must be achieved in Syria,” said Mr Al Budaiwi.
In Lebanon, Israel has been accused of violating a truce agreement with Iran's backed militant group Hezbollah since it came into force in November. It is supposed to transition into a permanent ceasefire on January 26, but Israel’s violations continue to hinder the process despite the presence of an overseeing committee led by the US.
On Thursday, the Lebanese army said that “Israeli enemy forces penetrated several points in the areas of Qantara, Adshit Al Qusayr, and Wadi Al Hujayr” in southern Lebanon.
“We condemn the dangerous Israeli attacks on Lebanon,” said Mr Al Budaiwi.
In their statement, the Gulf ministers called for "holding presidential elections as soon as possible" in Lebanon.
Lebanon has been without a president since October 2022. The US, France and other countries have been calling for the election of a new head of state to avoid a power vacuum and help stabilise the country's political life. US envoy Amos Hochstein, who mediated the ceasefire talks between Hezbollah and Israel, said that the election of the president is vital for Lebanon.
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Libya's Gold
UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves.
The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.
Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.
A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.
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In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.
An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.
“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.
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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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