• US President Joe Biden waves from a plane at King Abdulaziz International Airport in Jeddah. AFP
    US President Joe Biden waves from a plane at King Abdulaziz International Airport in Jeddah. AFP
  • US President Joe Biden boards a plane at King Abdulaziz International Airport in Jeddah. AFP
    US President Joe Biden boards a plane at King Abdulaziz International Airport in Jeddah. AFP
  • Mr Biden walks to the plane. AFP
    Mr Biden walks to the plane. AFP
  • President Sheikh Mohamed in discussion with Mr Biden during the Gulf Co-operation Council GCC+3 Jeddah Security and Development Summit. Photo: Abdulla Al Neyadi for the Presidential Court
    President Sheikh Mohamed in discussion with Mr Biden during the Gulf Co-operation Council GCC+3 Jeddah Security and Development Summit. Photo: Abdulla Al Neyadi for the Presidential Court
  • US President Joe Biden attends the Gulf Co-operation Council GCC+3 Jeddah Security and Development Summit at a hotel in the Saudi Arabian Red Sea coastal city. AFP
    US President Joe Biden attends the Gulf Co-operation Council GCC+3 Jeddah Security and Development Summit at a hotel in the Saudi Arabian Red Sea coastal city. AFP
  • Saudi Arabia's Crown Prince Mohammed bin Salman attends the Gulf Co-operation Council GCC+3 meeting in Jeddah. AFP
    Saudi Arabia's Crown Prince Mohammed bin Salman attends the Gulf Co-operation Council GCC+3 meeting in Jeddah. AFP
  • US President Joe Biden and Saudi Arabia's Crown Prince Mohammed bin Salman at the GCC+3 Jeddah Security and Development Summit. AFP
    US President Joe Biden and Saudi Arabia's Crown Prince Mohammed bin Salman at the GCC+3 Jeddah Security and Development Summit. AFP
  • President Sheikh Mohamed attended a traditional summit 'family photo call' in the company of, from left: Asaad bin Tariq Al Said, Omani Deputy Prime Minister for International Relations and Co-operation Affairs and the Special Representative of the Sultan; Sheikh Mohamed; Egypt's President Abdel Fattah El Sisi; Bahrain's King Hamad bin Isa bin Salman Al Khalifa; US President Joe Biden; Saudi Crown Prince Mohammed bin Salman; Jordan's King Abdullah II; Qatar's Emir Sheikh Tamim bin Hamad Al Thani; Kuwait's Crown Prince Mishal Al Ahmad Al Jaber Al Sabah, and Iraq's Prime Minister Mustafa Al Kadhimi. AFP
    President Sheikh Mohamed attended a traditional summit 'family photo call' in the company of, from left: Asaad bin Tariq Al Said, Omani Deputy Prime Minister for International Relations and Co-operation Affairs and the Special Representative of the Sultan; Sheikh Mohamed; Egypt's President Abdel Fattah El Sisi; Bahrain's King Hamad bin Isa bin Salman Al Khalifa; US President Joe Biden; Saudi Crown Prince Mohammed bin Salman; Jordan's King Abdullah II; Qatar's Emir Sheikh Tamim bin Hamad Al Thani; Kuwait's Crown Prince Mishal Al Ahmad Al Jaber Al Sabah, and Iraq's Prime Minister Mustafa Al Kadhimi. AFP
  • President Sheikh Mohamed is received by Saudi Arabia's Crown Prince Mohammed bin Salman upon his arrival at King Abdulaziz International Airport. Photo: Abdulla Al Neyadi for the Presidential Court
    President Sheikh Mohamed is received by Saudi Arabia's Crown Prince Mohammed bin Salman upon his arrival at King Abdulaziz International Airport. Photo: Abdulla Al Neyadi for the Presidential Court
  • President Sheikh Mohamed is received by Saudi Arabia's Prince Mohamed bin Salman upon his arrival at King Abdulaziz International Airport. Photo: Abdulla Al Neyadi for the Presidential Court
    President Sheikh Mohamed is received by Saudi Arabia's Prince Mohamed bin Salman upon his arrival at King Abdulaziz International Airport. Photo: Abdulla Al Neyadi for the Presidential Court
  • President Sheikh Mohamed greets Sheikh Mishal Al Sabah, Crown Prince of Kuwait, during the GCC+3 Jeddah Security and Development Summit. Photo: Rashed Al Mansoori / Presidential Court
    President Sheikh Mohamed greets Sheikh Mishal Al Sabah, Crown Prince of Kuwait, during the GCC+3 Jeddah Security and Development Summit. Photo: Rashed Al Mansoori / Presidential Court
  • US President Joe Biden and Secretary of State Antony Blinken meet Egyptian President Abdel Fattah El Sisi, Foreign Minister Sameh Shoukry and other officials during a bilateral meeting at a hotel in Saudi Arabia's Red Sea coastal city of Jeddah before the GCC+3 meeting. AFP
    US President Joe Biden and Secretary of State Antony Blinken meet Egyptian President Abdel Fattah El Sisi, Foreign Minister Sameh Shoukry and other officials during a bilateral meeting at a hotel in Saudi Arabia's Red Sea coastal city of Jeddah before the GCC+3 meeting. AFP
  • US President Joe Biden meets Iraqi Prime Minister Mustafa Al Kadhimi, in Jeddah before the beginning of the GCC+3 meeting. Reuters
    US President Joe Biden meets Iraqi Prime Minister Mustafa Al Kadhimi, in Jeddah before the beginning of the GCC+3 meeting. Reuters
  • Saudi Arabia's Crown Prince Mohammed bin Salman receives Sheikh Mishal Al Sabah, Crown Prince of Kuwait, before the GCC + 3 Jeddah Security and Development Summit on Saturday. SPA
    Saudi Arabia's Crown Prince Mohammed bin Salman receives Sheikh Mishal Al Sabah, Crown Prince of Kuwait, before the GCC + 3 Jeddah Security and Development Summit on Saturday. SPA
  • Saudi Arabia's Crown Prince Mohammed bin Salman and Egypt's President Abdel Fattah El Sisi arrive for the Jeddah summit. SPA
    Saudi Arabia's Crown Prince Mohammed bin Salman and Egypt's President Abdel Fattah El Sisi arrive for the Jeddah summit. SPA
  • US President Joe Biden participates in a working session with Saudi Crown Prince Mohammed bin Salman at Al Salam Palace in Jeddah. AP
    US President Joe Biden participates in a working session with Saudi Crown Prince Mohammed bin Salman at Al Salam Palace in Jeddah. AP
  • US President Joe Biden and US Secretary of State Antony Blinken in a bilateral meeting with Saudi officials led by Crown Prince Mohammed bin Salman at Al Salam Palace. Reuters
    US President Joe Biden and US Secretary of State Antony Blinken in a bilateral meeting with Saudi officials led by Crown Prince Mohammed bin Salman at Al Salam Palace. Reuters
  • Saudi Arabia's Crown Prince Mohammed bin Salman takes part in a working session with US President Joe Biden and his team. AFP
    Saudi Arabia's Crown Prince Mohammed bin Salman takes part in a working session with US President Joe Biden and his team. AFP
  • Saudi Arabia's King Salman greets US President Joe Biden at Al Salam Palace in Jeddah. Photo: @spagov
    Saudi Arabia's King Salman greets US President Joe Biden at Al Salam Palace in Jeddah. Photo: @spagov
  • King Salman and US President Joe Biden in discussions at Al Salam Palace in Jeddah. Photo: @spagov
    King Salman and US President Joe Biden in discussions at Al Salam Palace in Jeddah. Photo: @spagov
  • US President Joe Biden meets Saudi Crown Prince Mohammed bin Salman in Jeddah. Photo: @spagov
    US President Joe Biden meets Saudi Crown Prince Mohammed bin Salman in Jeddah. Photo: @spagov
  • US President Joe Biden arrives at King Abdulaziz International Airport in Jeddah. Photo: @spagov
    US President Joe Biden arrives at King Abdulaziz International Airport in Jeddah. Photo: @spagov
  • US President Joe Biden is welcomed by Saudi Arabian officials. AFP
    US President Joe Biden is welcomed by Saudi Arabian officials. AFP
  • Mr Biden disembarks from Air Force One at King Abdulaziz International Airport, following a flight from Tel Aviv. AFP
    Mr Biden disembarks from Air Force One at King Abdulaziz International Airport, following a flight from Tel Aviv. AFP
  • US Presidents Joe Biden salutes as he boards Air Force One at Ben Gurion International Airport in Lod, near Tel Aviv en route to a meeting with the GCC+3 in Jeddah, Saudi Arabia. Reuters
    US Presidents Joe Biden salutes as he boards Air Force One at Ben Gurion International Airport in Lod, near Tel Aviv en route to a meeting with the GCC+3 in Jeddah, Saudi Arabia. Reuters
  • Israel's President Isaac Herzog, second right, and caretaker Prime Minister Yair Lapid, centre, bid farewell to US President Joe Biden at Ben Gurion Airport. AFP
    Israel's President Isaac Herzog, second right, and caretaker Prime Minister Yair Lapid, centre, bid farewell to US President Joe Biden at Ben Gurion Airport. AFP
  • US President Joe Biden meets clergy at the Church of Nativity in Bethlehem, in the occupied West Bank. Reuters
    US President Joe Biden meets clergy at the Church of Nativity in Bethlehem, in the occupied West Bank. Reuters
  • US President Joe Biden is introduced to local people at the Church of Nativity in Bethlehem. Reuters
    US President Joe Biden is introduced to local people at the Church of Nativity in Bethlehem. Reuters
  • US President Joe Biden arrives at the Church of Nativity in Bethlehem, on the second full day of his Middle East visit. AFP
    US President Joe Biden arrives at the Church of Nativity in Bethlehem, on the second full day of his Middle East visit. AFP
  • US President Joe Biden and Palestinian President Mahmoud Abbas address the media after their meeting at the Muqataa Presidential Compound in Bethlehem, the occupied West Bank. AFP
    US President Joe Biden and Palestinian President Mahmoud Abbas address the media after their meeting at the Muqataa Presidential Compound in Bethlehem, the occupied West Bank. AFP
  • A photo of journalist Shireen Abu Akleh is placed on a chair as reporters wait for US President Joe Biden and Palestinian President Mahmoud Abbas to speak. She was killed in a raid by Israeli forces in May. The caption reads: 'Shireen Abu Akleh, voice of Palestine'. AP
    A photo of journalist Shireen Abu Akleh is placed on a chair as reporters wait for US President Joe Biden and Palestinian President Mahmoud Abbas to speak. She was killed in a raid by Israeli forces in May. The caption reads: 'Shireen Abu Akleh, voice of Palestine'. AP
  • US President Joe Biden with Palestinian President Mahmoud Abbas at a welcome ceremony at the Palestinian Muqataa Presidential Compound in Bethlehem, in the occupied West Bank. AFP
    US President Joe Biden with Palestinian President Mahmoud Abbas at a welcome ceremony at the Palestinian Muqataa Presidential Compound in Bethlehem, in the occupied West Bank. AFP
  • Palestinian President Mahmoud Abbas welcomes US President Joe Biden to the Israeli-occupied West Bank. Reuters
    Palestinian President Mahmoud Abbas welcomes US President Joe Biden to the Israeli-occupied West Bank. Reuters
  • A Palestinian security officer stands guard near the Church of the Nativity in Bethlehem in the occupied West Bank before US President Joe Biden’s official visit. AFP
    A Palestinian security officer stands guard near the Church of the Nativity in Bethlehem in the occupied West Bank before US President Joe Biden’s official visit. AFP
  • Palestinian and Israeli human rights campaigners lift banners during a rally near Augusta Victoria Hospital in East Jerusalem as US President Joe Binden visits. AFP
    Palestinian and Israeli human rights campaigners lift banners during a rally near Augusta Victoria Hospital in East Jerusalem as US President Joe Binden visits. AFP
  • US President Joe Biden greets fans as he attends the opening ceremony of the Maccabiah Games at Teddy Stadium in Jerusalem. AFP
    US President Joe Biden greets fans as he attends the opening ceremony of the Maccabiah Games at Teddy Stadium in Jerusalem. AFP
  • US President Joe Biden poses for a picture with US athletes competing in the Maccabiah Games. AFP
    US President Joe Biden poses for a picture with US athletes competing in the Maccabiah Games. AFP
  • People use the lights of their phones during the opening ceremony of the Maccabiah Games in Jerusalem, attended by US President Joe Biden. Reuters
    People use the lights of their phones during the opening ceremony of the Maccabiah Games in Jerusalem, attended by US President Joe Biden. Reuters
  • US athletes attend the opening ceremony of the Maccabiah Games in Jerusalem. AFP
    US athletes attend the opening ceremony of the Maccabiah Games in Jerusalem. AFP
  • The Maccabiah Games coincided with the US President Joe Biden's visit to the Middle East. AFP
    The Maccabiah Games coincided with the US President Joe Biden's visit to the Middle East. AFP
  • US President Joe Biden, centre, Israel's caretaker Prime Minister Yair Lapid, right, and President Isaac Herzog attend the opening ceremony for the Maccabiah Games in Jerusalem. Reuters
    US President Joe Biden, centre, Israel's caretaker Prime Minister Yair Lapid, right, and President Isaac Herzog attend the opening ceremony for the Maccabiah Games in Jerusalem. Reuters
  • A Palestinian protester carries a placard during a demonstration in the occupied West Bank city of Ramallah as US President Joe Biden visited Israel. AFP
    A Palestinian protester carries a placard during a demonstration in the occupied West Bank city of Ramallah as US President Joe Biden visited Israel. AFP
  • In Gaza City, Palestinian demonstrators wave their national flag as they gather to protest against the visit by US President Joe Biden to Israel. AFP
    In Gaza City, Palestinian demonstrators wave their national flag as they gather to protest against the visit by US President Joe Biden to Israel. AFP
  • A billboard, part of a campaign organised by the Centre for Human Rights B'Tselem, installed before US President Joe Biden's arrival for an official visit in the West Bank city of Bethlehem. PA
    A billboard, part of a campaign organised by the Centre for Human Rights B'Tselem, installed before US President Joe Biden's arrival for an official visit in the West Bank city of Bethlehem. PA
  • US President Joe Biden receives the Israeli Presidential Medal of Honour from Israeli President Isaac Herzog in Jerusalem. AP Photo
    US President Joe Biden receives the Israeli Presidential Medal of Honour from Israeli President Isaac Herzog in Jerusalem. AP Photo
  • US President Joe Biden, centre left, and President Isaac Herzog with children after Mr Biden's arrival at the presidential residence in Jerusalem. AFP
    US President Joe Biden, centre left, and President Isaac Herzog with children after Mr Biden's arrival at the presidential residence in Jerusalem. AFP
  • US President Joe Biden signs the guest book in the presence of President Isaac Herzog on arriving at the presidential residence in Jerusalem. AFP
    US President Joe Biden signs the guest book in the presence of President Isaac Herzog on arriving at the presidential residence in Jerusalem. AFP
  • US President Joe Biden with President Isaac Herzog and Mrs Michal Herzog in Jerusalem. AFP
    US President Joe Biden with President Isaac Herzog and Mrs Michal Herzog in Jerusalem. AFP
  • US and Saudi Arabian flags in a square in Jeddah, Saudi Arabia, before US President Joe Biden's visit. AP
    US and Saudi Arabian flags in a square in Jeddah, Saudi Arabia, before US President Joe Biden's visit. AP
  • US President Joe Biden and caretaker Israeli Prime Minister Yair Lapid at a press conference at the Waldorf Astoria Hotel in Jerusalem. EPA
    US President Joe Biden and caretaker Israeli Prime Minister Yair Lapid at a press conference at the Waldorf Astoria Hotel in Jerusalem. EPA
  • President Sheikh Mohamed delivers the opening speech during the I2U2 summit, a meeting between the leaders of the UAE, India, Israel and the US. Seen with Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation. Photo: Presidential Court
    President Sheikh Mohamed delivers the opening speech during the I2U2 summit, a meeting between the leaders of the UAE, India, Israel and the US. Seen with Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation. Photo: Presidential Court
  • President Sheikh Mohamed speaks with Indian Prime Minister Narendra Modi, US President Joe Biden and Israeli Prime Minister Yair Lapid during the I2U2 summit. Photo: Presidential Court
    President Sheikh Mohamed speaks with Indian Prime Minister Narendra Modi, US President Joe Biden and Israeli Prime Minister Yair Lapid during the I2U2 summit. Photo: Presidential Court
  • US President Joe Biden and caretaker Iraeli Prime Minister Yair Lapid address a joint press conference. AFP
    US President Joe Biden and caretaker Iraeli Prime Minister Yair Lapid address a joint press conference. AFP
  • US President Joe Biden and Israeli caretaker Prime Minister Yair Lapid during their meeting at a hotel in Jerusalem. AFP
    US President Joe Biden and Israeli caretaker Prime Minister Yair Lapid during their meeting at a hotel in Jerusalem. AFP
  • US President Joe Biden speaks to Holocaust survivors Dr Gita Cycowicz and Rena Quint in the Hall of Remembrance, at Yad Vashem in Jerusalem. AP
    US President Joe Biden speaks to Holocaust survivors Dr Gita Cycowicz and Rena Quint in the Hall of Remembrance, at Yad Vashem in Jerusalem. AP
  • US President Joe Biden participates in a wreath-laying ceremony in the Hall of Remembrance at Yad Vashem Holocaust Remembrance Centre in Jerusalem. AP
    US President Joe Biden participates in a wreath-laying ceremony in the Hall of Remembrance at Yad Vashem Holocaust Remembrance Centre in Jerusalem. AP
  • Israel's President Isaac Herzog speaks with US Secretary of State Antony Blinken and US President Joe Biden during their visit to Hall of Remembrance at Yad Vashem Holocaust Remembrance Centre in Jerusalem. Reuters
    Israel's President Isaac Herzog speaks with US Secretary of State Antony Blinken and US President Joe Biden during their visit to Hall of Remembrance at Yad Vashem Holocaust Remembrance Centre in Jerusalem. Reuters
  • Israeli Defence Minister Benny Gantz, left, US President Joe Biden, second left, caretaker Prime Minister Yair Lapid, right, and Brig Gen Shawn Harris, defence attache to the US embassy, in front of Israel's Iron Dome defence system during a tour at Ben Gurion Airport. AP
    Israeli Defence Minister Benny Gantz, left, US President Joe Biden, second left, caretaker Prime Minister Yair Lapid, right, and Brig Gen Shawn Harris, defence attache to the US embassy, in front of Israel's Iron Dome defence system during a tour at Ben Gurion Airport. AP
  • US President Joe Biden waves as he leaves Israel's Ben Gurion Airport on his way to Jerusalem. EPA
    US President Joe Biden waves as he leaves Israel's Ben Gurion Airport on his way to Jerusalem. EPA
  • US President Joe Biden, centre, stands for the national anthems alongside Secretary of State Antony Blinken, second left, Israel's President Herzog, third left, caretaker Prime Minister Yair Lapid, third right, and departing prime minister Naftali Bennett, second right, at Ben Gurion Airport. AFP
    US President Joe Biden, centre, stands for the national anthems alongside Secretary of State Antony Blinken, second left, Israel's President Herzog, third left, caretaker Prime Minister Yair Lapid, third right, and departing prime minister Naftali Bennett, second right, at Ben Gurion Airport. AFP
  • Caretaker Israeli Prime Minister Yair Lapid and President Isaac Herzog welcome US President Joe Biden to Israel as his trip begins. Reuters
    Caretaker Israeli Prime Minister Yair Lapid and President Isaac Herzog welcome US President Joe Biden to Israel as his trip begins. Reuters


Is Biden's hardened Iran stance enough to assuage US allies' concerns?


  • English
  • Arabic

July 14, 2022

US President Joe Biden’s warning that he would be prepared to use military force against Iran to prevent it from acquiring nuclear weapons provides a much-needed indication to Washington’s long-established Middle East allies of Mr Biden’s seriousness in dealing with Tehran.

At a time when the International Atomic Energy Agency, the UN-sponsored body responsible for monitoring Iran’s nuclear activity, reports that Tehran has begun enriching uranium on a new generation of sophisticated centrifuges at its underground Fordow facility, there is every reason for the rest of the region to be concerned. Additionally, Iran has demonstrated its mounting military confidence by preparing to equip Russia with hundreds of drones to help with its military campaign in Ukraine.

Gulf states such as Saudi Arabia, where Mr Biden will end his whistle-stop tour of the region at the weekend, have their own experience of having to deal with the threat posed by Iranian-made drones. US investigators concluded that these drones were involved in the deadly attack mounted against Saudi Arabia’s oil facilities in 2019, while similar technology was used in January’s attack by Yemen’s Tehran-backed Houthi rebels against Abu Dhabi.

Concerns about Iran’s mounting military threat have been the cause of recent tensions between Washington and pro-western leaders in the region.

Biden’s visit comes at a time when much thought is being given to improving regional security

In this context, therefore, the assurances provided by Mr Biden concerning his administration’s attitude towards Iran’s nuclear ambitions is an encouraging step.

In an interview with the Israeli broadcaster N12 on Wednesday, Mr Biden made a robust response when pressed on whether he was willing to use force to prevent Iran from acquiring nuclear weapons. “If that was a last resort, yes," the President said. “Iran cannot get a nuclear weapon.”

Mr Biden is no stranger to the Middle East, having visited the region on a number of occasions during his stints as a senator and later as Barack Obama's vice president. But this is his first visit since becoming President last year. Until the Ukraine crisis erupted in February, he had shown little interest in engaging with regional allies. Administration officials had repeatedly insisted that, so far as the Biden White House was concerned, the Middle East was not seen as a priority.

Russia’s invasion of Ukraine, and the subsequent spike in oil prices that has seen inflation reach a 40-year high in the US, has prompted Mr Biden to have a change of heart. One of his objectives will be to persuade oil-producing states in the region to increase production in a bid to ease the pressure on global oil prices. He will need this to help his Democratic Party try and avoid a wipe-out in November’s mid-term election.

After Mr Biden’s neglect of the region during his first 18 months in office, it remains to be seen how responsive regional leaders will be to his entreaties. He has certainly tried to make all the right noises ahead of the trip. In a Washington Post op-ed published this month, Mr Biden declared that his main ambition was to demonstrate America’s “vital leadership role” in the region.

In this context, the President’s robust comments on Iran will certainly help to allay fears that Washington’s obsession with securing a nuclear deal with Tehran is being pursued at the expense of addressing regional security concerns. Mr Biden’s visit certainly comes at a time when much thought is being given to improving regional security to a level where the Iranian threat can be contained to a manageable level.

Top army officials inspect drones at an underground base in an undisclosed location in Iran. AFP
Top army officials inspect drones at an underground base in an undisclosed location in Iran. AFP

The recent improvement in relations between Israel and the Gulf following the signing of the ground-breaking Abraham Accords in 2020 has led to an improvement in regional atmospherics, one that could have profound implications for future security arrangements in the region.

It has even led to speculation in recent weeks that improved defence co-operation is possible between Israel and several of its Arab neighbours. There have been reports of secret talks being held at the Egyptian resort of Sharm El Sheikh and the establishment of joint arrangements on air defence, especially so far as the threat posed by Iran’s advanced ballistic missile systems are concerned. The prospect of establishing a regional air defence alliance has certainly attracted the Biden administration's attention, and the issue will be raised during Mr Biden’s meetings with Israeli and Arab leaders during the course of his tour.

As US National Security Council spokesman John Kirby said prior to Mr Biden’s departure to the Middle East, one of the White House’s aims is to create “a truly more co-operative air defence” in the face of the growing threat from Iran. “There is a growing convergence among nations in the region of concern about [Iran’s] advancing ballistic missile programme and their support to terror networks,” Mr Kirby said.

Such discussions are at an early stage but, at a moment when the Biden administration appears keen to rebuild trust with its Arab allies, they are not a bad place to start.

While you're here
Who's who in Yemen conflict

Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government

Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council

Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south

Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory

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: July 15, 2022, 8:19 AM