Members of the UN Security Council hold sideline meetings last December in New York City. Getty Images via AFP
Members of the UN Security Council hold sideline meetings last December in New York City. Getty Images via AFP
Members of the UN Security Council hold sideline meetings last December in New York City. Getty Images via AFP
Members of the UN Security Council hold sideline meetings last December in New York City. Getty Images via AFP


The UAE's call for reforms in the international order is a bid for justice


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May 28, 2024

The UAE is increasingly concerned about growing cracks and weaknesses in the international order, which the country witnessed in part during its time as a non-permanent member of the UN Security Council from 2022 to 2023. That experience provided a detailed, in-depth and realistic perspective of the international landscape, its complications and the engagement of great powers within this order.

The UAE has called for reforms to the Security Council and its voting mechanisms after noticing that the veto power of permanent members is often used in an unacceptable manner. This veto frequently prolongs crises, perpetuates conflicts and obstructs justice, driven by narrow political pretexts and interests that are often at odds with the desires and positions of most other countries.

During the UAE’s tenure at the Security Council, the veto was used 10 times – the highest number within such a period since 1989. This frequent use of the veto highlights international divisions over issues such as the wars in Gaza and Ukraine, deliberations at the International Court of Justice regarding claims of genocide and the recognition of the Palestinian state by several countries along with the controversy surrounding it.

Increased co-operation between the US, Europe and China would benefit all

These divisions underscore that the international consensus on the values and principles on which the UN and other international organisations were founded is currently lacking. Rather, the global landscape is marked by double standards, politicisation, polarisation and squabbling.

All these issues highlight the need to preserve the Council’s legitimacy by enhancing its effectiveness. Achieving this requires reform and adjustments to redefine the “international community” as a true representative of the positions of most countries, rather than being the voice of particular great powers only.

The rules-based order that the international community envisioned decades ago was meant to be a voice of justice and equality and the guardian of security, peace, prosperity and co-existence. But with the onset of the 21st century, the ability of this framework to perform efficiently has been eroded significantly. Meanwhile, crises around the world are increasing while solutions are diminishing.

There is a global consensus that this institutional framework, represented by UN bodies and other international organisations, is one of the best tools created to prevent wars, spread peace and demonstrate international solidarity in the face of threats and risks. It is designed to fulfil aspirations, protect human rights, aid the weak and oppressed and deter aggressors and oppressors. There is an urgent need to reform the world order and restore confidence in its mechanisms and tools. There is no other option because the alternative is the law of the jungle, where the strong annihilates the weak.

The UAE’s perspective on reforming the world order, notably the Security Council, is informed by its participation in recent intergovernmental negotiations on this issue in the UN General Assembly.

A number of suggestions have been put on the table, such as intensifying efforts to regulate the use of the veto. Deep divisions within the Security Council, often due to conflicting geopolitical interests, undermine efforts by the international community to reach a political consensus.

Even without the use of the veto, decisions often lack unanimity, limiting their impact. Hence, there is a need to establish clear and specific criteria for its use, in accordance with international law, the will of the vast majority of member states and the impartial opinion of the UN Secretariat.

The UAE has affirmed its support for calls to limit its use in cases involving mass atrocity crimes, a stance supported by more than a hundred member states. Last month, the UAE emphasised that the veto should not impede efforts to prevent atrocities against unarmed civilians.

It has also advocated for greater geographical representation when expanding the membership in the Security Council to include Arab countries, as well as greater fairness in the representation of Africa and the Asia-Pacific region in both permanent and non-permanent categories.

Other discussion points included the need for smoother and more focused texts for Security Council resolutions, as well as continued information sharing and transparency between the Security Council and General Assembly.

The UAE, like other GCC countries, has benefited from globalisation, the market economy, free trade and the free movement of investments. But it remains concerned about the cracks in the world order.

Dr Anwar Gargash, diplomatic adviser to President Sheikh Mohamed, has criticised any restrictions that hinder the efficient functioning of this system, describing the current world order as “outdated”. He said: “We are already living through the pain of an international system ... If you look at the veto that was applied to the Gaza issue, and the veto that was applied to the Ukrainian crisis, you will find that there is a problem with consensus.”

Dr Gargash added that he does not foresee “another San Francisco meeting”, referring to the 1945 talks that led to the creation of the UN. “We have to understand that, in fact, the system is eroding and the ability to deliver something new is really diminishing,” he added. “So we have to think seriously about how to deal with that.”

Like other small and medium-sized countries, the UAE feels caught in the middle of this increasingly eroding international reality, “between what represents the current order or the old order that was created after World War II, and [the challenges of] the diminishing ability of that order to regulate security, to regulate the economy”, as Dr Gargash put it.

On this basis, the UAE views with concern the divisions in Europe regarding questions of self-image and identity, the rise of the far right and populism, and the decline of consensus around the continental project. It also worries about the potential for increased confrontations between the US and China, particularly in the context of domestic debates in Washington about its role in the world and, more specifically, its place in the Middle East.

In sum, the UAE calls for a roadmap to reform the fracturing world order. It also believes that the need for a more reliable Arab regional order is especially urgent in light of these changes.

From this standpoint, increased co-operation between the US, Europe and China would benefit all. The greater the level of co-operation in the international system, the better it is for the world.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
Company%20Profile
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THE SPECS

Aston Martin Rapide AMR

Engine: 6.0-litre V12

Transmission: Touchtronic III eight-speed automatic

Power: 595bhp

Torque: 630Nm

Price: Dh999,563

Ms Yang's top tips for parents new to the UAE
  1. Join parent networks
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Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

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: May 28, 2024, 2:14 PM