The conflict in Syria is entering its its tenth year. Ten years of war, suffering and grief. And it’s still not over. Syrians continue to live in fear and despair, their future held hostage. While the war forced half the population to flee their homes in the past decade, those who stayed behind are facing an unprecedented economic crisis and the threat of coronavirus.
At the fourth Brussels Conference on “Supporting the future of Syria and the region” on June 29 and 30, more than 80 countries, regional and international organisations and UN agencies are sitting around a virtual roundtable to address all of the key dimensions of the Syrian crisis: political, humanitarian, financial and regional. We are reaffirming our strong support for UN efforts for a political solution to the conflict and for the terms of UN Security Council Resolution 2254. A political solution, reached through a UN-mediated, inclusive, Syrian-led and Syrian-owned dialogue, is the only way of achieving sustainable peace in Syria. The alternative is ever more misery caused by the obstinate determination of the long-discredited regime.
This year, on top of being the worst humanitarian crisis since the Second World War, Syria is close to economic collapse. The regime’s mismanagement of the economy and widespread corruption, the financial crisis in neighbouring Lebanon and the coronavirus pandemic have brought Syria’s economy to its knees. The situation is dire. Syria faces its highest inflation rate ever, alongside a record devaluation of its national currency. Eight in 10 Syrians reportedly live in poverty and even top-tier salary earners are left with little real purchasing power. Basic goods are becoming scarce; food and medicine are starting to become unaffordable to ordinary people.
Syrians want the same things as every person and family anywhere else in the world: personal security, jobs and a future for their children. In other words, they need prospects for the future. The EU and its member states have been supporting Syrians everywhere since the start of the conflict. Over €20 billion has been provided in humanitarian, stabilisation and resilience assistance since 2011 – for Syrians in Syria and in support of the neighbouring countries.
We are very grateful for the solidarity shown by Jordan, Lebanon and Turkey, in particular. They are looking after more than 5.6 million Syrian refugees. These countries are struggling with complex domestic situations; they continue to need assistance to meet the growing needs of both the refugees and their own people. The EU is also helping them. Our assistance in response to the Syrian crisis does not only benefit Syrian refugees but also the Lebanese, Jordanian and Turkish people to create job opportunities, infrastructure (including schools) as well as better health and water services.
Syrians want the same things as every person and family anywhere else in the world
The EU Regional Trust Fund has helped communities in Lebanon and Jordan by providing basic income, access to health services and education and much more, ensuring that Syrian refugees and local hosts alike have a foundation to build a better future. In Turkey, the EU supports an emergency social safety net, the access of Syrian refugees to high quality Turkish health services, and school enrolment.
In Syria itself, we have been doing what we can to foster livelihoods, support communities and stimulate the very basics of economic life.
Since 2011, the EU has put sanctions in place, in response to the actions of the Syrian regime and its supporters. The goal of these measures is to put pressure on the regime to halt repression and to negotiate a lasting political settlement of the Syrian crisis in line with UNSC Resolution 2254, under UN auspices.
These sanctions target designated people and entities, not the population. They do not prevent the delivery of humanitarian aid or prohibit the export of food, medicine or medical equipment.
Today, we want to tell the Syrian people and the people of the countries hosting refugees that we know what they have been going through, that we care and that we will continue to stand by them.
We know that the Syrian refugees’ dearest dream is to go back home. We are ready to help make this happen once the conditions are in place. But, to what home? It is not realistic to expect refugees to return to the risk of being arrested, tortured or forced to fight a war they wanted to escape. The security of their life and property needs to be guaranteed. And we know that the stability necessary for the reconciliation and reconstruction of Syria will only come once the regime renounces brutality and embarks on a process of genuine political dialogue, backed with tangible changes and moves that will heal Syria’s wounds.
That was, is and remains our goal. Our motto is that the Syrian people must decide the future of Syria. As the EU, we will stand by them in doing so.
Josep Borrell is the High Representative of the European Union
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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.”