A panel discussion at the Manama Dialogue in Bahrain last week. AFP
A panel discussion at the Manama Dialogue in Bahrain last week. AFP
A panel discussion at the Manama Dialogue in Bahrain last week. AFP
A panel discussion at the Manama Dialogue in Bahrain last week. AFP


Has the role of western allies in the region's security shifted?


Nasser bin Nasser
Nasser bin Nasser
  • English
  • Arabic

November 25, 2022

The Government of the Kingdom of Bahrain and the International Institute for Strategic Studies held the 19th Manama Dialogue over the past weekend in what has become the region's premier annual regional security conference.

Given the volatile and complex state of global affairs, there are naturally numerous observations from the conference, yet one stands out in particular is that western powers, both US and European, appear intent on demonstrating the depth and durability of their security partnership with the region.

At the conference, more than one visiting official went to great lengths to showcase different areas of defence and security co-operation with regional allies, underscoring their commitment to the region’s security.

This was partly to curry favour with the hosts of the conference – understandably so, but it was also intended to dispel concerns about the reliability of this partnership. The so-called pivot by the US towards the Asia-Pacific, the drawdown of US troops from the region and the Joint Comprehensive Plan of Action or the nuclear deal, are what initially triggered these concerns. Growing US energy independence also fuelled them. The combination of these developments seemed to suggest that the region was no longer a priority, given the growing list of other priorities.

Past attacks against GCC countries that did not elicit any response from the US also shook the partnership. The impression that the region is no longer a priority is still strong in the region, even if it is not rooted in fact. The region’s enduring importance is unlikely to change because of the maritime routes it borders, its central role in energy markets and its western-oriented economies. Yet sometimes impressions appear more important than facts.

A negotiated settlement, and not a military one, will be the only lasting solution to the conflict

For the skeptics in the audience though, this message was also interpreted as serving a dual purpose; it comes with an expectation of reciprocity, especially when it comes to Russia. On the issue of impressions, there is a strong one in the West – that countries in the region are adopting a position of “strategic neutrality” and are either hedging their bets or making light of the violation of international laws and norms that the invasion represents. To drive this point home, at least two European speakers drew parallels between the Iraqi invasion of Kuwait in 1990 and the Russian invasion of Ukraine.

Most countries in the region have already taken quite a strong stance to condemn Russia’s actions. However, they believe a negotiated settlement, and not a military one, will be the only lasting solution to the conflict.

The West might not buy this; in the same way that the region may not buy that their concerns vis-a-vis Iran are shared with the West, despite assurances given in Manama and elsewhere. As an example from the conference that sums this up succinctly, one conference delegate pointed out that Russian forces were using Iranian drones in Ukraine at the same time that the P5+1 was contemplating ways to revive the JCPOA, a comment which did not elicit acknowledgment from the speaker.

Some have argued that the US and European roles in the region are fundamentally changing because of issues of reliability. A more likely explanation is the absence of an organising principle for this role or the relationship, similar to that of containing Soviet expansion and counter-terrorism in the past. If, on the other hand, West-China competition will be the organising principle of international relations for decades to come, it is not clear where the region fits into this. Could it be the case that an Asia pivot hinges on the Middle East?

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The biog

Nickname: Mama Nadia to children, staff and parents

Education: Bachelors degree in English Literature with Social work from UAE University

As a child: Kept sweets on the window sill for workers, set aside money to pay for education of needy families

Holidays: Spends most of her days off at Senses often with her family who describe the centre as part of their life too

Timeline

2012-2015

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

November 2025

180 Petrofac employees laid off in the UAE

'Jurassic%20World%20Dominion'
%3Cp%3EDirector%3A%20Colin%20Trevorrow%3C%2Fp%3E%0A%3Cp%3EStars%3A%20Sam%20Neill%2C%20Laura%20Dern%2C%20Jeff%20Goldblum%2C%20Bryce%20Dallas%20Howard%2C%20Chris%20Pratt%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets

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.”

TOP 5 DRIVERS 2019

1 Lewis Hamilton, Mercedes, 10 wins 387 points

2 Valtteri Bottas, Mercedes, 4 wins, 314 points

3 Max Verstappen, Red Bull, 3 wins, 260 points

4 Charles Leclerc, Ferrari, 2 wins, 249 points

5 Sebastian Vettel, Ferrari, 1 win, 230 points

Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

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.

COMPANY%20PROFILE
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Three ways to limit your social media use

Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.

1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.

2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information. 

3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.

Updated: November 25, 2022, 12:21 PM