Funding for the majority of USAID programmes is to be withdrawn. AFP
Funding for the majority of USAID programmes is to be withdrawn. AFP
Funding for the majority of USAID programmes is to be withdrawn. AFP
Funding for the majority of USAID programmes is to be withdrawn. AFP

Trump administration to slash 83% of USAID programmes


Willy Lowry
  • English
  • Arabic

Secretary of State Marco Rubio on Monday announced that 83 per cent of the US Agency for International Development's programmes will be cut.

Mr Rubio posted on X – the platform owned by Elon Musk, who is spearheading efforts to reduce US government waste and cull the federal workforce – to announce that 5,200 programmes would be cut in an effort to save money. The cuts come after a six-week review process and any remaining programmes will be administered under the State Department.

“The 5,200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States,” Mr Rubio said.

He thanked Mr Musk’s Department of Government Efficiency, which led efforts to identify programmes that should be discontinued. “Thank you to Doge and our hardworking staff who worked very long hours to achieve this overdue and historic reform,” he said.

Former USAID employees condemned Mr Rubio’s decision and warned it threatened to further diminish American influence abroad.

“Marco Rubio has been very clear historically on the value of influential power, of soft power, of the role of USAID,” said Dave Harden, who served as the mission director of USAID in Gaza and the occupied West Bank from 2013 to 2016. “It's unequivocal what his positions have historically been. But he sold his soul in order to lick the boots of a would-be dictator.”

Mr Harden told The National he was worried about the impact the cuts would have on the Middle East, where USAID has historically had a large footprint, operating in nearly a dozen regional locations including Egypt, Iraq, Jordan, Lebanon, Syria, Gaza and the West Bank.

“I would worry about Jordan and I always feel like there needs to be some help for Gaza,” he said. “And you want both Lebanon and Egypt to remain stable and you want Lebanon to be able to assert national authority over Hezbollah factions … all these things are at risk.”

One former senior employee, who was among hundreds laid off in January, feared the cuts would be “very harmful” for the region.

“I think [it will be] most harmful for places like Jordan, Egypt and Yemen,” the former USAID employee said.

The veteran Middle East-focused staffer added that a reduced USAID would have far-reaching implications. “My fear is that there is no more counterbalance to the increasingly hostile policies coming out of current White House.”

While Mr Trump and his allies argued that foreign assistance is wasteful and does not serve US interests, aid groups say the assistance supports US interests by promoting stability and health overseas. USAID backers also warn that countries like China and Russia will expand into the vacuum left by American withdrawal.

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Monday
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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.”

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. 

What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

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How to help

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The National's picks

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So what is Spicy Chickenjoy?

Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
 

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The permutations for UAE going to the 2018 World Cup finals

To qualify automatically

UAE must beat Iraq.

Australia must lose in Japan and at home to Thailand, with their losing margins and the UAE's winning margin over Iraq being enough to overturn a goal difference gap of eight.

Saudi Arabia must lose to Japan, with their losing margin and the UAE's winning margin over Iraq being enough to overturn a goal difference gap of eight.

 

To finish third and go into a play-off with the other third-placed AFC side for a chance to reach the inter-confederation play-off match

UAE must beat Iraq.

Saudi Arabia must lose to Japan, with their losing margin and the UAE's winning margin over Iraq being enough to overturn a goal difference gap of eight.

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Updated: March 10, 2025, 6:53 PM