Iraqi Prime Minister's US visit overshadowed by Iran's attack on Israel


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As tensions soar in the Middle East following Iran's attack against Israel, the Iraqi Prime Minister Mohammed Shia Al Sudani's visit to Washington takes on profound significance with geopolitical ramifications.

President Joe Biden is hosting Mr Al Sudani at the White House on Monday at the start of a week-long visit that was supposed to focus on expanding bilateral ties and new economic opportunities when US forces eventually leave Iraq.

But Saturday's attack, during which Iran fired 300 drones and missiles through Iraqi airspace towards Israel, will change the focus of Mr Al Sudani's visit.

The events "will cast their shadow heavily on the visit, prompting the White House to impose very strict conditions on the Iraqi Prime Minister”, the political analyst Ihsan Al Shammari, who leads the Iraqi Political Thinking Centre think tank in Baghdad, told The National.

Israel, the US and UK shot down most of the drones and missiles, and Iran has said it considers its military action against Israel "completed", provided Israel does not strike back.

Tehran said Saturday's action was in retaliation for Israel's April 1 missile attack on Iran's embassy compound in Damascus that killed two senior Iranian commanders and other officers.

Mr Al Sudani took office in October 2022 as the nominee from the Iran-aligned Co-ordination Framework – the largest political group in the Iraqi parliament with 138 out of 329 seats.

Mr Biden needs Mr Al Sudani to rein in Iran-backed armed groups, who until early February had conducted scores of attacks on US troops in Iraq and Syria. The attacks have stopped for now after negotiations between Baghdad and Washington.

“The US will look very anxiously at the Prime Minister’s inability to control these armed factions, and also, even the guarantees he holds, I believe, will not be very reliable given what happened [on Saturday],” Mr Al Shammari said.

The Iranian attack, he added, will probably increase the pressure on the Prime Minister and could “complicate the negotiations and it may also greatly embarrass” him.

While attacks against US forces in Iraq and Syria have abated, Iranian proxies in Iraq, Syria, Yemen and Lebanon have continued to attack Israel.

“Obviously, the attacks and further complication of the Middle East is going to distract from the positive image and context that the two countries have been trying to present in their bilateral relationship,” Sarhang Hamasaeed, Director of Middle East Programmes at the United States Institute of Peace, told The National.

But, he noted, that while Iran’s attack may take up considerable oxygen, it also presents an opportunity for Washington and Baghdad to “reaffirm directly the interest of the two countries”.

Balancing act

A key goal for Mr Al Sudani's visit is to secure an agreement on the withdrawal of foreign troops from his country, a decade after they arrived in Iraq to fight ISIS. He also wants more US companies to set up shop in Iraq.

Experts say Mr Al Sudani, a rare ally of both Washington and Tehran, is engaged in a difficult balancing act.

“He's under pressure from some internal elements to ensure that the US agrees to withdraw its troops,” Richard Schmierer, chairman of the board of the Middle East Policy Council and State Department official for more than three decades, told The National.

“But on the other hand, he is also responsible for Iraqi security and he knows that the absence of US security support would be very detrimental to his ability to provide security to his people.

“Squaring that circle, I think, will be a challenge.”

In an op-ed published last week, Mr Al Sudani said his visit is aimed at putting US-Iraqi relations “on a new, more sustainable foundation”.

“We welcome the opportunity to work with the United States to defuse crises and reduce tensions in the Middle East,” he wrote in Foreign Affairs.

“Yet we are intent on avoiding becoming caught in the conflict between two of our partners, Iran and the United States.”

Funeral for militants killed in US strike in Iraq – in pictures

  • Members of Iraq's Hashd Al Shaabi (Popular Mobilisation), carry portraits of people killed in US strikes in western Iraq. AFP
    Members of Iraq's Hashd Al Shaabi (Popular Mobilisation), carry portraits of people killed in US strikes in western Iraq. AFP
  • Ambulances carry the coffins of Iraqi Shi'ite armed group members who were killed by a US air strike. Reuters
    Ambulances carry the coffins of Iraqi Shi'ite armed group members who were killed by a US air strike. Reuters
  • Members of Iraqi Shiite Popular Mobilisation Forces gather near an ambulance carrying a coffin. EPA
    Members of Iraqi Shiite Popular Mobilisation Forces gather near an ambulance carrying a coffin. EPA
  • Members of an Iraqi Shiite militant group attend a funeral for the group members who were killed by a US air strike, in Baghdad. AP
    Members of an Iraqi Shiite militant group attend a funeral for the group members who were killed by a US air strike, in Baghdad. AP
  • Members of Iraq's Hashd Al Shaabi carry flags ahead of the funeral of people killed in US strikes in western Iraq. AFP
    Members of Iraq's Hashd Al Shaabi carry flags ahead of the funeral of people killed in US strikes in western Iraq. AFP
  • Ambulances carrying the bodies of people killed in US strikes in western Iraq ahead of their funeral procession in Baghdad. AFP
    Ambulances carrying the bodies of people killed in US strikes in western Iraq ahead of their funeral procession in Baghdad. AFP
  • US forces conducted air strikes on more than 85 targets in Iraq and Syria against Iran's Islamic Revolutionary Guards Corps and affiliated militia groups. AP
    US forces conducted air strikes on more than 85 targets in Iraq and Syria against Iran's Islamic Revolutionary Guards Corps and affiliated militia groups. AP
  • Members of an Iraqi Shiite militant group attend a funeral for the group members who were killed in air strikes. AP
    Members of an Iraqi Shiite militant group attend a funeral for the group members who were killed in air strikes. AP
  • Faleh al-Fayyad, the head of Hashd Al Shaabi, speaks during the funeral of people killed in US strikes in western Iraq. AFP
    Faleh al-Fayyad, the head of Hashd Al Shaabi, speaks during the funeral of people killed in US strikes in western Iraq. AFP

A senior State Department official said a discussion on the future bilateral defence and security relationship was “likely to be a very important part" of talks.

The official said the leaders will discuss potential for investments in areas including energy and water.

Baghdad is largely dependent on Iran for its energy needs and is facing an uncertain future with regard to water security due to the effects of climate change.

The White House said the visit is aimed at reinforcing “the strong bilateral partnership” between the two countries and will allow the two sides to consult on a wide range of issues, including the “evolution of the military mission” to fight ISIS.

“The leaders will reaffirm their commitment to the Strategic Framework Agreement and deepen their shared vision for a secure, sovereign, and prosperous Iraq fully integrated into the broader region,” a White House statement said.

Mr Al Sudani has been critical of the Biden administration’s continued political and military support of Israel and its right-wing Prime Minister Benjamin Netanyahu.

“It’s not just the Iraqi government, but the entire region has been dismayed by the way the Biden administration conducted itself in terms of this war – they completely left Benjamin Netanyahu in the driver's seat and exercised no leadership whatsoever,” Abbas Kadhim, director of the Iraq initiative at the Atlantic Council, told The National.

Mr Al Sudani also wants to create separate bilateral agreements with each of the countries taking part in the US-led international anti-ISIS coalition in Iraq.

“Rather than a one-stop-shop with a whole coalition that does everything, they want to unpack that and have bilateral agreements with each government,” Mr Kadhim explains.

“Will this solve the issue of troops in Iraq? Of course not.”

About 2,500 US troops remain in Iraq in an advise-and-assist capacity with the aim of preventing the resurgence of ISIS. Hundreds of troops from European countries are also in Iraq as part of the coalition.

Mr Biden, meanwhile, is also under pressure.

Earlier this month, eight Senate and House Republicans wrote to him, criticising his decision to host Mr Al Sudani, saying the meeting was “inappropriate” and that it would undermine US support for Israel and other allies in the region.

“Hosting the Iraqi prime minister … amplifies the message of your ongoing campaign to undermine Israeli Prime Minister Netanyahu: the Biden administration is interested in appeasing Iran, not supporting our allies,” stated the letter, led by senators Rick Scott and Tom Cotton.

The politicians said Mr Al Sudani’s visit should be conditional on his administration resuming funding for the Kurdistan region and reducing Iran’s influence on the country.

Mr Schmierer said the war in Gaza has complicated US-Iraqi relations and efforts to withdraw American troops.

Security concerns will also complicate any economic aspirations in energy as well as potential investments in the private sector.

“I think the Prime Minister is going to have to balance many balls in the air,” Mr Schmierer said.

“This idea that Iran somehow has great leverage on Iraq is, I think, oversimplifying, as [Mr Al Sudani] does need to make sure he retains good relations with the Kurdish Regional Government and probably more importantly, with his Arab neighbours.”

Willy Lowry contributed to this report from Washington

Iraqi Prime Minister Mohammed Shia Al Sudani speaks during a December press conference. AP
Iraqi Prime Minister Mohammed Shia Al Sudani speaks during a December press conference. AP
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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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Evacuations to France hit by controversy
  • Over 500 Gazans have been evacuated to France since November 2023
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  • Since the start of the Gaza war, it has also included 45 Gazan beneficiaries
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Haircare resolutions 2021

From Beirut and Amman to London and now Dubai, hairstylist George Massoud has seen the same mistakes made by customers all over the world. In the chair or at-home hair care, here are the resolutions he wishes his customers would make for the year ahead.

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Damage control is a big part of most hairstylists’ work right now, but it can be avoided. Steer clear of over-colouring at home, try and pursue one hair brand at a time and never, ever use a straightener on still drying hair, pleads Massoud.

Biography

Favourite book: Zen and the Art of Motorcycle Maintenance

Holiday choice: Anything Disney-related

Proudest achievement: Receiving a presidential award for foreign services.

Family: Wife and three children.

Like motto: You always get what you ask for, the universe listens.

Updated: April 15, 2024, 8:26 PM