The Gulf and South-East Asia make a good team


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October 26, 2023

During the years I lived in the Arabian Gulf, I found there was much interest in South-East Asia but little direct knowledge of the region. Similarly, throughout the time I’ve lived in South-East Asia, I’ve come across plenty who want to hear and talk about the Gulf but found that first-hand experience is rarer.

Of course, there are many South-East Asian expatriates working in the Gulf – more than one million Filipinos alone – and there have been people of Arab descent in South-East Asia for centuries.

At times, individual ties have been strong: the UAE-Indonesia Comprehensive Economic Partnership has just come into force, which is expected to increase annual bilateral trade to $10 billion within five years, for example; and relations between Saudi Arabia and Malaysia were so good in 2017 that a King Salman Centre for International Peace was going to be built in Kuala Lumpur.

A Freedom for Palestine rally in Kuala Lumpur's Merdeka Square, on October 22, in Malaysia. Getty Images
A Freedom for Palestine rally in Kuala Lumpur's Merdeka Square, on October 22, in Malaysia. Getty Images

But at others, the relationship between the GCC and the 10-member Association of South-East Asian Nations (Asean) as a whole has appeared to amount to little more than “tepid co-operation”, as Narayanappa Janardhan, director of research and analysis at the Anwar Gargash Diplomatic Academy in Abu Dhabi, put it recently.

In my own experience, academics and think tank directors have expressed keenness at forging stronger region-to-region links; and then little happened.

This is why the GCC-Asean Summit – the first ever – that took place in Riyadh last weekend was so important.

Think what they could do. They would represent more than 700 million people

Co-chaired by Saudi Crown Prince Mohammed bin Salman and Indonesian President Joko Widodo, most of the heads of government were present, and a joint statement was issued with sufficient substance to raise expectations of how the two blocs can co-ordinate and strengthen ties in the future.

The GCC member-states formally acceded to the Treaty of Amity and Co-operation in South-East Asia – a legally binding code for inter-state relations in the region and beyond.

All parties committed to an Asean-GCC Framework of Co-operation (2024-2028), which covers political and security dialogue, trade and investment, people-to-people exchanges, education, culture, tourism, media and sports. And the statement set out a range of other areas, from economic development to the joint promotion of both regions’ traditions, arts, heritage and cultures, where the two blocs have agreed to work closely together.

Prime Minister Anwar Ibrahim of Malaysia – the country co-ordinator of the summit – proposed creating a free trade agreement for the GCC and Asean, which would surely increase the already robust $110 billion trade between the blocs.

The summit also issued a firm “Statement on Developments in Gaza”, which condemned all attacks against civilians, called for a durable ceasefire and for all parties to abide by international humanitarian law, and urged all concerned to work towards the realisation of a two-state solution in Palestine-Israel based on the pre-1967 borders.

It was another part of the joint statement, however, that caught my eye and hinted at a tantalising prospect.

The summit jointly “welcomed the candidacy of Saudi Arabia to host the 2034 Fifa World Cup”. Riyadh’s bid can already be assumed to have the support of the entire Arab region; to add the official backing of all of South-East Asia, which taken as a whole is globally the third-most populous economy, after China and India, is quite something.

If the two blocs made a regular habit of teaming up to act as one internationally, they could constitute a formidable grouping.

Think what they could do. They would represent more than 700 million people, and they would have a combined gross domestic product estimated between $6-8 trillion. Aligned as the GCC and Asean are in many ways, together they could project a far stronger voice in the global conversation than they do on their own.

They have important views and aspects in common. The around 250 million Muslims in South-East Asia is an obvious point, but the place religion has in nearly all of the two blocs's member-states is the larger picture, especially compared to the secularising West. Both blocs acknowledge the reality of the rise of China, and they want to work peacefully with Beijing and avoid the rhetoric of war.

Broadly speaking, they have similar approaches to human rights.

The 2020 version of the Cairo Declaration on Human Rights in Islam states that “everyone has the right to exercise and enjoy the rights and freedoms set out in the present declaration, without prejudice to the principles of Islam and national legislation”, while the 1993 Bangkok Declaration issued after the Regional Meeting for Asia of the World Conference on Human Rights said that the latter must be considered “bearing in mind the significance of national and regional particularities and various historical, cultural and religious backgrounds”.

All the GCC and Asean member-states would also agree to the principle of “non-interference in the internal affairs of one another”, which is in the Treaty of Amity and Co-operation; take no pleasure at being lectured by the former colonial powers; and wish to build a future within the context of their own histories, cultures and customs.

Together, the GCC and Asean could play a significant role in determining the emerging multipolar world, resisting the “you’re either with us or you’re against us” paradigm to which some leaders wish to reduce international relations, and instead promoting a vision of peace, mutual collaboration and respect for others.

The prospect is alluring. It’s certainly a possibility if the will is there.

Either way, the GCC-Asean Summit was a good start – and it deserves much more attention, both within member-states and beyond.

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Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

The biog

Title: General Practitioner with a speciality in cardiology

Previous jobs: Worked in well-known hospitals Jaslok and Breach Candy in Mumbai, India

Education: Medical degree from the Government Medical College in Nagpur

How it all began: opened his first clinic in Ajman in 1993

Family: a 90-year-old mother, wife and two daughters

Remembers a time when medicines from India were purchased per kilo

The Orwell Prize for Political Writing

Twelve books were longlisted for The Orwell Prize for Political Writing. The non-fiction works cover various themes from education, gender bias, and the environment to surveillance and political power. Some of the books that made it to the non-fiction longlist include: 

  • Appeasing Hitler: Chamberlain, Churchill and the Road to War by Tim Bouverie
  • Some Kids I Taught and What They Taught Me by Kate Clanchy
  • Invisible Women: Exposing Data Bias in a World Designed for Men by Caroline Criado Perez
  • Follow Me, Akhi: The Online World of British Muslims by Hussein Kesvani
  • Guest House for Young Widows: Among the Women of ISIS by Azadeh Moaveni
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

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

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Yemen's Bahais and the charges they often face

The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.

The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran. 

Today, some 2,000 Baha'is reside in Yemen, according to Insaf. 

"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said. 

Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer. 

The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy. 

 

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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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About Takalam

Date started: early 2020

Founders: Khawla Hammad and Inas Abu Shashieh

Based: Abu Dhabi

Sector: HealthTech and wellness

Number of staff: 4

Funding to date: Bootstrapped

What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

Some of Darwish's last words

"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.

Key findings of Jenkins report
  • Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
  • Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
  • Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
  • Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
Updated: October 26, 2023, 10:46 AM