Turkish President Tayyip Erdogan in Ankara. Umit Bektas / Reuters
Turkish President Tayyip Erdogan in Ankara. Umit Bektas / Reuters
Turkish President Tayyip Erdogan in Ankara. Umit Bektas / Reuters
Turkish President Tayyip Erdogan in Ankara. Umit Bektas / Reuters

Erdogan is dragging Turkey into an abyss


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Turkey's President Recep Tayyip Erdogan has placed his country in the heart of a storm, taking US-Turkish relations to a cliff's edge as a result of his military and economic policies, which seem to benefit Russia more than Nato member Turkey itself. Mr Erdogan has already antagonised Europe, playing the card of refugees flocking to the West through the Turkish gateway. Not long ago, Turkey had normal relations with Saudi Arabia but Mr Erdogan today has lost that important relationship that brought together two major powers. Instead, he prefers to align himself with Qatar amid the Gulf dispute with Doha, pitting himself against the Arab quartet.

Mr Erdogan is also bargaining over his country’s interests in Syria with the Russians, becoming a secondary player in the Russian-led Astana process alongside Iran. He also dragged down Palestine when he chose to back Hamas over the Palestinian Authority, helping drive a wedge between Palestinians, only for Hamas to now turn its back on him as it seeks a deal with Israel with US and Egyptian blessing. His relations with Iran, meanwhile, are based on short-term calculations and a shared dislike of Nato ally US, pitting himself not only against Donald Trump but also the US Congress, which distrusts him for his dealings with Russia and Iran. In short, Mr Erdogan is dragging himself and Turkey into the abyss, unless he climbs down from his stubbornness and neo-Ottoman delusions. He has surrounded himself with enemies and given both Washington and Moscow a rope to hang him with.

Mr Trump's policy, which uses sanctions targeting the economy and currency as a means to coerce politically, is not solely responsible for the collapse of the Turkish lira. Rather, this was the result of the economic policies of Mr Erdogan and his son-in-law, the finance minister Berat Albayrak. US sanctions on Iran meanwhile have struck at the heart of the regime and will take an even more fateful turn when they expand into the oil sector on November 4. The new sanctions Washington threatened this week against Turkey unless it releases the American pastor Andrew Brunson will affect infrastructure and would not be mitigated by any kind of support like that pledged by the emir of Qatar after a visit to Ankara last week.

What is new and significant in the recent regional developments is the radical shift in the geography of crises here. In recent years, the Arab region was the chosen theatre for both Iran and Turkey to implement their regional projects. But today the regime in Tehran faces the possibility of implosion from within, a shift from the erstwhile exportation of its agenda, revolution and proxies into Arab countries – just as Mr Erdogan’s Turkey faces implosion.

The White House is not interested in Mr Erdogan's ultimate fate but in the fate of Turkey's Nato membership. Mr Erdogan's shenanigans have long irked US administrations and Congress. Some question his ulterior motives, saying Turkey is no longer a strategic ally.

Consequently the US has taken measures to reduce reliance on Turkey’s Incirlik airbase. US aircraft carriers will for the time being be the de facto alternative until Turkey’s Nato credentials are settled.

The US resentment with Turkey has multiple reasons, from the differences over the Kurdish question and Ankara’s insistence on acquiring the Russian-made S-400 air defence system, to the Turkish anti-American discourse and its bid to circumvent US sanctions on Iran.

By insisting on purchasing the S-400 system, he has triggered a bill in Congress to block the delivery of US F-35 fighter jets to Ankara. Turkey does not need the Russian system and the US military establishment would never allow a loophole through which the Russians could learn the secrets of the F-35. It is in Russia’s interest for Turkey to exit Nato, regardless of how that happens. But there is a bloody history between Russia and Turkey, which makes a Russian-Turkish alliance against Nato a dangerous idea, most notably because it would provoke both Europe and the US.

The issue of oil and gas might be instrumental in the development of Russian-Turkish relations, based on Turkey’s strategic position linking Russia, Iran, Azerbaijan and Qatar, the world’s top producers of gas, to the consuming countries in Europe. Iran and Qatar’s projects to export their gas to Europe through Syrian territory have been hindered by developments on the ground but also Russia’s dominance over the future of pipelines to Europe. Turkey was part of Qatar’s project to export gas through Syria but with the collapse of the Qatari project, Turkey shifted to alternative relations with Russia, which is developing its gas export policies to circumvent Ukraine.

The shortest route for Russian oil and gas experts to Europe is Ukraine but this is no longer an option following the Russian intervention there. Moscow has been looking to offset Ukraine and Turkey has offered its services. The US is angry because that is another Turkish policy that it considers provocative and incompatible with its interests.

Mr Erdogan’s wager on Vladimir Putin is risky and not just because of the two men’s arrogant and authoritarian personalities. What if a deal had been secretly struck between Mr Putin and Mr Trump at their summit in Helsinki? In that scenario, Mr Putin would not risk such an accord for the sake of an anti-Nato alliance with Mr Erdogan.

And what would Mr Erdogan do if Turkey left or was made to leave Nato? His strategic vision has made him an untrustworthy member of the alliance. Turkey does not have any friends that can mediate to contain the tensions with the US. The only way to de-escalate would be for Mr Erdogan to descend from his neo-Ottoman ivory tower and get in touch with reality.

Huddersfield Town permanent signings:

  • Steve Mounie (striker): signed from Montpellier for £11 million
  • Tom Ince (winger): signed from Derby County for £7.7m
  • Aaron Mooy (midfielder): signed from Manchester City for £7.7m
  • Laurent Depoitre (striker): signed from Porto for £3.4m
  • Scott Malone (defender): signed from Fulham for £3.3m
  • Zanka (defender): signed from Copenhagen for £2.3m
  • Elias Kachunga (winger): signed for Ingolstadt for £1.1m
  • Danny WIlliams (midfielder): signed from Reading on a free transfer
Meghan%20podcast
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The President's Cake

Director: Hasan Hadi

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

Rating: 4/5

The biog

DOB: 25/12/92
Marital status: Single
Education: Post-graduate diploma in UAE Diplomacy and External Affairs at the Emirates Diplomatic Academy in Abu Dhabi
Hobbies: I love fencing, I used to fence at the MK Fencing Academy but I want to start again. I also love reading and writing
Lifelong goal: My dream is to be a state minister

No Shame

Lily Allen

(Parlophone)

if you go

The flights

Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.

The trip

Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.

BRAZIL%20SQUAD
%3Cp%3EGoalkeepers%3A%20Alisson%2C%20Ederson%2C%20Weverton%3Cbr%3E%3Cbr%3EDefenders%3A%20Dani%20Alves%2C%20Marquinhos%2C%20Thiago%20Silva%2C%20Eder%20Militao%20%2C%20Danilo%2C%20Alex%20Sandro%2C%20Alex%20Telles%2C%20Bremer.%3Cbr%3E%3Cbr%3EMidfielders%3A%20Casemiro%2C%20Fred%2C%20Fabinho%2C%20Bruno%20Guimaraes%2C%20Lucas%20Paqueta%2C%20Everton%20Ribeiro.%3Cbr%3E%3Cbr%3EForwards%3A%20Neymar%2C%20Vinicius%20Junior%2C%20Richarlison%2C%20Raphinha%2C%20Antony%2C%20Gabriel%20Jesus%2C%20Gabriel%20Martinelli%2C%20Pedro%2C%20Rodrygo%3C%2Fp%3E%0A
THE DETAILS

Kaala

Dir: Pa. Ranjith

Starring: Rajinikanth, Huma Qureshi, Easwari Rao, Nana Patekar  

Rating: 1.5/5 

Hili 2: Unesco World Heritage site

The site is part of the Hili archaeological park in Al Ain. Excavations there have proved the existence of the earliest known agricultural communities in modern-day UAE. Some date to the Bronze Age but Hili 2 is an Iron Age site. The Iron Age witnessed the development of the falaj, a network of channels that funnelled water from natural springs in the area. Wells allowed settlements to be established, but falaj meant they could grow and thrive. Unesco, the UN's cultural body, awarded Al Ain's sites - including Hili 2 - world heritage status in 2011. Now the most recent dig at the site has revealed even more about the skilled people that lived and worked there.

Keep it fun and engaging

Stuart Ritchie, director of wealth advice at AES International, says children cannot learn something overnight, so it helps to have a fun routine that keeps them engaged and interested.

“I explain to my daughter that the money I draw from an ATM or the money on my bank card doesn’t just magically appear – it’s money I have earned from my job. I show her how this works by giving her little chores around the house so she can earn pocket money,” says Mr Ritchie.

His daughter is allowed to spend half of her pocket money, while the other half goes into a bank account. When this money hits a certain milestone, Mr Ritchie rewards his daughter with a small lump sum.

He also recommends books that teach the importance of money management for children, such as The Squirrel Manifesto by Ric Edelman and Jean Edelman.

WHAT%20ARE%20THE%20PRODUCTS%20WITHIN%20THE%20THREE%20MAJOR%20CATEGORIES%3F
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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.”

THE%20SWIMMERS
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Fight card

Preliminaries:

Nouredine Samir (UAE) v Sheroz Kholmirzav (UZB); Lucas Porst (SWE) v Ellis Barboza (GBR); Mouhmad Amine Alharar (MAR) v Mohammed Mardi (UAE); Ibrahim Bilal (UAE) v Spyro Besiri (GRE); Aslamjan Ortikov (UZB) v Joshua Ridgwell (GBR)

Main card:

Carlos Prates (BRA) v Dmitry Valent (BLR); Bobirjon Tagiev (UZB) v Valentin Thibaut (FRA); Arthur Meyer (FRA) v Hicham Moujtahid (BEL); Ines Es Salehy (BEL) v Myriame Djedidi (FRA); Craig Coakley (IRE) v Deniz Demirkapu (TUR); Artem Avanesov (ARM) v Badreddine Attif (MAR); Abdulvosid Buranov (RUS) v Akram Hamidi (FRA)

Title card:

Intercontinental Lightweight: Ilyass Habibali (UAE) v Angel Marquez (ESP)

Intercontinental Middleweight: Amine El Moatassime (UAE) v Francesco Iadanza (ITA)

Asian Featherweight: Zakaria El Jamari (UAE) v Phillip Delarmino (PHI)

Listen to Extra Time
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2019 ASIA CUP POTS

Pot 1
UAE, Iran, Australia, Japan, South Korea, Saudi Arabia

Pot 2
China, Syria, Uzbekistan, Iraq, Qatar, Thailand

Pot 3
Kyrgyzstan, Lebanon, Palestine, Oman, India, Vietnam

Pot 4
North Korea, Philippines, Bahrain, Jordan, Yemen, Turkmenistan

Uefa Champions League play-off

First leg: Wednesday, 11pm (UAE)
Ajax v Dynamo Kiev

Second leg: Tuesday, August 28, 11pm (UAE)
Dynamo Kiev v Ajax

The specs: 2019 BMW i8 Roadster

Price, base: Dh708,750

Engine: 1.5L three-cylinder petrol, plus 11.6 kWh lithium-ion battery

Transmission: Six-speed automatic

Power: 374hp (total)

Torque: 570Nm (total)

Fuel economy, combined: 2.0L / 100km

MATCH INFO

Manchester City 6 Huddersfield Town 1
Man City: Agüero (25', 35', 75'), Jesus (31'), Silva (48'), Kongolo (84' og)
Huddersfield: Stankovic (43')

UAE currency: the story behind the money in your pockets
MATCH INFO

Everton 2 Southampton 1
Everton: Walcott (15'), Richarlison (31' )
Southampton: Ings (54')

Man of the match: Theo Walcott (Everton)