Nato Secretary General Mark Rutte speaks at Chatham House in London. Getty Images
Nato Secretary General Mark Rutte speaks at Chatham House in London. Getty Images
Nato Secretary General Mark Rutte speaks at Chatham House in London. Getty Images
Nato Secretary General Mark Rutte speaks at Chatham House in London. Getty Images

Nato chief asks alliance members to make 'quantum leap'


Damien McElroy
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Nato Secretary General Mark Rutte warned on Monday that the "clock starts ticking" on a Russian attack on its members as soon as a ceasefire is declared in Ukraine.

With advanced Russian missiles putting Western nations within minutes of launch, he added that the entire alliance was "all the eastern front now". The Nato chief called for a “400 per cent increase” in air and missile-defence capacity is needed to counter the threat from Russia.

“The new generation of Russian missiles travel at many times the speed of sound," he said. "The distance between European capitals is only a matter of minutes. There is no longer east or west. There is just Nato.”

The Nato chief met UK Prime Minister Keir Starmer in London amid calls by US President Donald Trump for members of the transatlantic alliance to increase defence spending to 5 per cent of GDP. The current target is 2 per cent.

Mr Rutte believes a “quantum leap” in collective defence is needed. He is expected to warn that “wishful thinking will not keep us safe” and say that Nato must become a “stronger, fairer and more lethal alliance” to protect itself. “We see in Ukraine how Russia delivers terror from above, so we will strengthen the shield that protects our skies,” Mr Rutte said in a speech to the Chatham House think tank in London.

Ukrainian soldiers take part in a training exercise. AFP
Ukrainian soldiers take part in a training exercise. AFP

His comments come ahead of a Nato summit in the Netherlands this month and amid mounting pressure by Mr Trump on Nato members to increase defence spending. The US Defence Secretary Pete Hegseth said last week in Brussels that the allies were close to agreeing the 5 per cent target, which could be formalised at the summit in The Hague.

Nato members have been scrambling to bolster their defence capabilities since Russia launched its full-scale invasion of Ukraine in February 2022.

“Danger will not disappear even when the war in Ukraine ends,” Mr Rutte said. “We need a quantum leap in our collective defence … we must have more forces and capabilities to implement our defence plans in full. Our militaries also need thousands more armoured vehicles and tanks, millions more artillery shells.”

The UK’s Strategic Defence Review, which was published last week, recommended sweeping changes, including a greater focus on new technology, including drones and artificial intelligence based on rising budgets. It included plans to build up to 12 nuclear-powered attack submarines and six munitions factories to rearm the country in response to the threat from Russia.

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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.”

Updated: June 09, 2025, 5:23 PM