Moscow, it seems, believed that the war would help Russia in mobilising its allies into forming an anti-western bloc. Such a thing has failed to materialise. Worse, from the Kremlin's viewpoint, the West has broadly stood together and applied some of the most stringent sanctions that, within days, have crippled the Russian economy.
A wedge has emerged between Russia and its ally Iran, with the Ukraine war having an impact on the talks being held in Vienna to revive the 2015 nuclear deal between the global powers and Tehran. Until recently, Moscow was the main advocate of Iranian interests in Vienna. Today, Tehran is reportedly irked by Moscow's move to link the war to the negotiations, which Iran wants to conclude as quickly as possible so that western powers lift their sanctions on its economy.
The Ukraine crisis has added a vital element to the equation: Iran's oil and gas, which could serve as additional resources in the international markets after the US banned its oil and gas imports from Moscow. The Biden administration has initiated talks with Iran in this regard, with the latter's response being that it is ready to export its resources as soon as the aforementioned sanctions are lifted. It is, effectively, calling on Washington to conclude the Vienna talks quickly.
The Ukraine crisis could lead to a reset in US-Gulf relations
The Biden administration as well as governments in key European countries, too, are seeking to seal the deal with Iran. The former, because it needs a victory before this year's midterm election; the latter, because it seeks alternative energy suppliers as it attempts to wean itself from Russian hydrocarbons.
Yet, European countries aren't speaking with one voice on the matter. Germany, Hungary, Italy and the Netherlands are among those that are heavily reliant on Russian energy and for whom it will take months to transition away from Moscow's supplies. The EU, meanwhile, is seeking to reduce reliance on traditional energy sources to one third of the current level by the end of 2022.
While Iran potentially stands to benefit from this move, Russian negotiators are said to have sought a guarantee from the US that it will not sanction Iran in the future; Moscow's thinking seems to be that preventing future sanctions on Iran would help Russia sell its oil through Iran.
It appears that Iran has, for now, determined that its interests lie with the US and Europe, although it is clear it won't forgo its strategic alliance with Russia. This pragmatic approach, Tehran seems to believe, will help its regime to better pursue its strategic objectives.
IAEA director general Rafael Mariano Grossi, left, and Iranian Foreign Minister Hossein Amirabdollahian shake hands prior to their meeting in Tehran on Saturday. AP Photo
How this affects security in the Middle East, it's too early to tell. It is likelier than not that Iran will seize the opportunity to finance its regional expansionist projects. Logically, a potential pivot to the West should help to curb its destabilising policies in the region. But it is possible that the Iranian regime and the Biden administration will sign accords that end up legitimising Tehran's gains in Syria, Lebanon and Iraq.
China, Russia's other ally, has also hedged rather than going all-out in its support for the Ukraine war. Its equation with Kyiv means that peace in the region is in Beijing's interests. China has made it clear to the West that it does not appreciate Nato's eastward expansion over the past three decades. It has also abstained in the UN votes to deplore Russia's operations inside Ukraine, but it has not thrown its wholehearted support behind Moscow either. And it's unlikely it will risk being sanctioned by the West for the sake of showing solidarity with Russia.
Even Venezuela, which for years has pushed back against American influence in South America, is now responding positively to recent US efforts to build ties. With the Biden administration eyeing Venezuela's large energy reserves, it might consider lifting sanctions on Caracas as well as ending its international isolation.
The US isn't just reaching out to its so-called adversaries for solidarity and energy. The Biden administration is attempting to improve tense relations with Washington's allies in the Gulf, too.
US-Gulf relations have been strained slightly by the current administration's policies in the Middle East, including its going out of the way to reset its equation with Iran, which poses a security threat to the region at large, and its decision to remove Yemen's Houthi rebels from its terror list last year. While the US is considering putting them back on the list following the Houthis' attacks on Abu Dhabi earlier this year, no action has yet been taken.
But the Ukraine crisis could lead to a reset in relations, especially bearing in mind that the Gulf states have deepened their respective ties with China and Russia in recent years. A reset, together with an increase in oil prices, could further increase these countries' influence in international decision-making process. They are already responding to the Ukraine war and its fall-out with great maturity and pragmatism – and are, therefore, likely to consider renewing their respective bilateral relations with the US.
Even a few weeks ago, few could have predicted that the world order would be reshaped in so drastic a manner so quickly. But with the war unlikely to end anytime soon, as Russian forces continue to double down inside Ukraine, we can expect still more twists in the tale.
UAE currency: the story behind the money in your pockets
Start-up hopes to end Japan's love affair with cash
Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.
Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.
Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.
Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.
Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.
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.”
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
You can’t yet talk about investing or borrowing, but introduce a “classic” money bank and start putting gifts and allowances away. When the child wants a specific toy, have them save for it and help them track their progress.
Early childhood (six - eight years)
Replace the money bank with three jars labelled ‘saving’, ‘spending’ and ‘sharing’. Have the child divide their allowance into the three jars each week and explain their choices in splitting their pocket money. A guide could be 25 per cent saving, 50 per cent spending, 25 per cent for charity and gift-giving.
Middle childhood (nine - 11 years)
Open a bank savings account and help your child establish a budget and set a savings goal. Introduce the notion of ‘paying yourself first’ by putting away savings as soon as your allowance is paid.
Young teens (12 - 14 years)
Change your child’s allowance from weekly to monthly and help them pinpoint long-range goals such as a trip, so they can start longer-term saving and find new ways to increase their saving.
Teenage (15 - 18 years)
Discuss mutual expectations about university costs and identify what they can help fund and set goals. Don’t pay for everything, so they can experience the pride of contributing.
Young adulthood (19 - 22 years)
Discuss post-graduation plans and future life goals, quantify expenses such as first apartment, work wardrobe, holidays and help them continue to save towards these goals.
* JP Morgan Private Bank
WHAT IS A BLACK HOLE?
1. Black holes are objects whose gravity is so strong not even light can escape their pull
2. They can be created when massive stars collapse under their own weight
3. Large black holes can also be formed when smaller ones collide and merge
4. The biggest black holes lurk at the centre of many galaxies, including our own
5. Astronomers believe that when the universe was very young, black holes affected how galaxies formed
Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari
Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.
Number of employees: Over 50
Financing stage: Series B currently being finalised
Investors: Series A - Audacia Capital
Sector of operation: Transport
The fake news generation
288,000 – the number of posts reported as hate speech that were deleted by Facebook globally each month in May and June this year
11% – the number of Americans who said they trusted the news they read on Snapchat as of June 2017, according to Statista. Over a quarter stated that they ‘rarely trusted’ the news they read on social media in general
31% - the number of young people in the US aged between 10 and 18 who said they had shared a news story online in the last six months that they later found out was wrong or inaccurate
63% - percentage of Arab nationals who said they get their news from social media every single day.
JERSEY INFO
Red Jersey
General Classification: worn daily, starting from Stage 2, by the leader of the General Classification by time. Green Jersey
Points Classification: worn daily, starting from Stage 2, by the fastest sprinter, who has obtained the best positions in each stage and intermediate sprints. White Jersey
Young Rider Classification: worn daily, starting from Stage 2, by the best young rider born after January 1, 1995 in the overall classification by time (U25). Black Jersey
Intermediate Sprint Classification: worn daily, starting from Stage 2, by the rider who has gained the most Intermediate Sprint Points.
"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008
His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.
