America remains understandably fixated on the outcome of an historic election where the spotlight has been on issues closer to home such as the economy, abortion, immigration and the country’s democratic system itself. Foreign policy issues have mostly been on the sidelines, with some discussion about whether the Middle East wars or foreign interference in America’s elections might affect outcomes in certain swing states.
No matter who wins the race for the White House, US President Joe Biden’s successor will have his or her hands full with a long list of challenges and unresolved conflicts in the Middle East – as well as a handful of limited opportunities. In his final months in office, how can Mr Biden take the sad song that has been his Middle East policy and make it better for who comes after him, whether it’s former president Donald Trump or current Vice President Kamala Harris?
The Biden administration’s Middle East approach during the past year has mostly been one of strategic drift – allowing actors such as Israel, Iran, Hamas, Hezbollah and the Houthis to drive the dynamics. More than a year into an Israel-Hamas war that has expanded to several fronts, the Biden administration has been unable to achieve nearly any its stated diplomatic and security outcomes.
That is mostly due to the complexities of the region and the fact that the main combatants see their fight as existential. But it is also related to the Biden administration’s unwillingness and inability to create a proactive strategy that engages the region with some of its closest partners across the Middle East.
The Biden administration did not arrive at this moment by accident. It took office with many other priorities than the Middle East – it was strongly focused on national recovery at home amid the Covid-19 pandemic, and its foreign policy priorities centred on competing with China, dealing with climate change and rebuilding ties with Europe and Asia.
In 2022, Russia’s invasion of Ukraine led to a surge in global oil prices at a time when inflation was a growing challenge in America, and Mr Biden visited Israel and Saudi Arabia to strengthen ties. After China brokered a deal between Iran and Saudi Arabia to restore ties in March last year, the Biden administration intensified its efforts to strengthen bilateral links with Saudi Arabia and worked to broker a Saudi-Israeli normalisation deal.
But the October 7 attacks and their aftermath put the Biden administration in tactical, reactive crisis-management mode. It was unwilling and unable to exercise leverage and use the full range of its powers to achieve most of the goals it sought, including a long-term ceasefire and hostage-release deal, sufficient humanitarian aid for Palestinians in Gaza, and protections for civilians. The best things that could be said about the Biden administration’s approach over the past year is that it has worked to prevent a full-blown conventional war across the Middle East, and it got the release of some hostages in a temporary ceasefire at the end of last November.
How can the Biden administration best use the time it has left in office? It could take important steps to improve its policies in the Middle East, but it needs to be realistic about what can be done. It can still shape the conditions in the region and the mechanisms for co-operation with close partners to make modest steps towards two big-picture goals – the creation of a state of Palestine as part of a two-state solution and a sustainable reduction of tensions with Iran and its network across the region. Neither of these two big-picture items will be achieved during the remainder of Mr Biden’s term, but it can take three steps that will help his successor move towards these strategic outcomes.
Washington can still work towards the creation of a State of Palestine and a sustainable reduction of tensions with Iran and its regional network. Neither will be achieved during the remainder of Mr Biden’s term, but it can help his successor move towards these strategic outcomes
First, it must step up America’s role as a regional security integrator among its partners to benefit a wider circle of ordinary people across the region. One important function the US has played in the past year is limiting and containing a bigger conflict that otherwise might have erupted between Iran and Israel – this was seen in the exchange of direct attacks earlier this month as well as April. No other outside actor has the firepower, direct military presence and broad networks of relationships to play the role America does on security. America should continue to nudge its partners to increase interoperability and co-ordination on things like regional missile and drone defence, as well as co-ordinated maritime operations that encourage partners to work together.
Most importantly, the Biden team could do more in co-ordination with Middle East partners to enhance civilian protections for Palestinians, Lebanese, Yemenis, Iraqis and Syrians.
Second, the US must build a formal regional diplomatic coalition with partners to advance the two-state solution. The Israel-Hamas and Israel-Hezbollah wars are arguably the greatest strategic threat to regional stability since the rise of ISIS. The Biden administration should take a page from the Obama administration’s efforts to defeat the terrorists; it should form a regional and international coalition to work in lockstep towards the goals of building a pathway to a two-state solution, something that will probably not happen early in the next administration, but nonetheless remains a strategic priority.
This coalition could work together on the diplomatic and political steps to help Palestinians create a new framework for governance in post-war Gaza, and it can start to develop a “marshalling” plan to organise the expertise, knowledge and financial resources that will be needed to create a pathway to a functioning state of Palestine. This coalition could also work together to isolate the spoilers in the region who remain fundamentally opposed to a two-state solution.
Third, it must isolate extremists in Israel, Iran and across the region who oppose peace and stability. Regarding Iran and its so-called Axis of Resistance, this means complementing US military efforts against militias and terrorist groups who threaten America and its allies. However, it also means creating a new diplomatic and political co-ordination effort to boost those countries and figures who oppose Tehran’s efforts to destabilise the region and support a two-state solution. A key component of this is sanctioning and isolating Israeli extremists who threaten Palestinians while trying to undermine a two-state solution.
The question of who will be best positioned to pick up the baton from Mr Biden on Middle East issues is a complicated one that is open to significant debate and conjecture. If Mr Biden takes these three steps and improves the conditions in the region slightly, both Ms Harris and Mr Trump stand a better chance of moving towards a more proactive agenda on issues like advancing a Saudi-Israeli normalisation accord and fostering regional integration. But without attending to both Palestine and Iran properly, neither Ms Harris nor Mr Trump stand much of a chance of performing any better than Mr Biden did.
Mr Trump and Ms Harris have staked out different positions on the key Middle East issues, but it remains unclear how much either of them will prioritise the region. Given the high degree of uncertainty in America’s election and in the Middle East as well, the most that could be said credibly about the main contrast between Mr Trump and Ms Harris on the Middle East is this: strategic unpredictability compared with a technocratic tactical approach.
Mr Trump will be less predictable than Ms Harris – and he will zig-zag on particular Middle East policy questions the same way he did during his previous term. He will call for quick ends to the wars, while also giving Israel a blank cheque to do what it sees fit. On issues like Iran, Mr Trump is so difficult to pin down that he is as equally likely to try to broker a quick deal with Tehran as he is to back efforts by Israel to double down on its military approach. It is anyone’s guess what he might do in the Middle East – and Mr Trump may even surprise himself given his lack of consistency.
Ms Harris, by contrast, is mostly cut from the same cloth as her boss, Mr Biden. Though she has voiced greater empathy for the Palestinians, the tone shift has not, and will probably not, result in a major policy shift, unless Mr Biden takes some of the steps suggested above. On Iran, Ms Harris is likely to pay more lip service and even dedicate more time and effort on diplomacy, but the realities of Tehran’s negative role on regional and global security are increasingly difficult to ignore.
America is on the edge of an unpredictable period in its own politics – and this comes at a time of major strategic uncertainty in the Middle East and the broader world. The best pathway for America to shape and influence outcomes in the Middle East is working more closely with reliable partners towards two main goals that have been articulated by several US administrations from both political parties for years: a two-state solution to the Palestinian-Israeli conflict and an Iran that no longer threatens its neighbours with endless wars.
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 President's Cake
Director: Hasan Hadi
Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem
Rating: 4/5
Jawan
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Everton 1 Stoke City 0
Everton (Rooney 45 1')
Man of the Match Phil Jagielka (Everton)
UAE currency: the story behind the money in your pockets
More on Quran memorisation:
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
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Indoor cricket in a nutshell
Indoor cricket in a nutshell
Indoor Cricket World Cup - Sept 16-20, Insportz, Dubai
16 Indoor cricket matches are 16 overs per side
8 There are eight players per team
9 There have been nine Indoor Cricket World Cups for men. Australia have won every one.
5 Five runs are deducted from the score when a wickets falls
4 Batsmen bat in pairs, facing four overs per partnership
Scoring In indoor cricket, runs are scored by way of both physical and bonus runs. Physical runs are scored by both batsmen completing a run from one crease to the other. Bonus runs are scored when the ball hits a net in different zones, but only when at least one physical run is score.
Zones
A Front net, behind the striker and wicketkeeper: 0 runs
B Side nets, between the striker and halfway down the pitch: 1 run
C Side nets between halfway and the bowlers end: 2 runs
D Back net: 4 runs on the bounce, 6 runs on the full
UAE currency: the story behind the money in your pockets
Countries recognising Palestine
France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra
What are NFTs?
Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.
You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”
However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.
This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”
This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.
Mohammed bin Zayed Majlis
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
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Company%20Profile
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