There were no surprises in the final communique of the Arab League Summit in Saudi Arabia. The reality is that the challenges of facing this region are well known – and the calls for solutions are not new. However, the Summit marked an important moment for Saudi Arabia – and with it the Arab world – in framing what its leaders consider the most important issues to address in the region. Palestinian statehood, resolving protracted conflicts, countering terrorism and pushing back against Iran’s expansionist aims in the Middle East. Those four elements are today the biggest security challenges to the region. And without security, little else can be achieved.
The humanitarian toll from the wars and conflicts in a number of Arab countries continues to rise, while the largest number of refugees globally remain in this part of the world. Kuwait’s Emir Sheikh Sabah Al Ahmad Al Sabah aptly remarked that "heavy clouds continue to hang over our region", calling for action to ensure the Arab world passes "from the sense of despair to one of hope".
Economic and cultural progress in countries like the United Arab Emirates shines a light on what can be achieved with the right combination of visionary leadership, stability and opportunity. However, not enough of those beacons are present today.
Saudi King Salman bin Abdel Aziz presided over the Summit in the eastern city of Dhahran, which lasted six hours, with seventeen heads of government and state. Before giving the floor to Palestinian President Mahmoud Abbas, King Salman announced that this year's dialogue would be named the "Jerusalem Summit".
The announcement, along with $200 million in funding for Palestine, was a reminder that the issue of Palestine, and the plight of its people, remain central to the Arab world. Without a doubt, the devastation in Syria, Libya, Yemen and beyond has meant that Palestine is no longer given the spotlight at every meeting or discussion, but it holds its place atop the list of regional priorities.
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The occupation of Palestine will continue to pose the greatest threat to any stability in the Middle East. Mr Abbas urged fellow Arab leaders to ensure Palestine's membership of the UN and to reach out to support the people of the occupied territories. Using a famous Arab saying, Mr Abbas said "visiting a prisoner is not visiting his jailer", in reference to the habitual Arab avoidance of visiting Palestine, in order to avoid crossing into Israel. As the Arab world commemorates seventy years since Al Nakba next month and the US prepares to move its embassy from Tel Aviv to Jerusalem, concerted Arab action is vital.
Co-ordinated positions will also be crucial to realise King Salman’s repeated calls for an Arab security structure to protect the people and nations of the Arab world. Having a framework that ensures the region’s security is based on mutually beneficial agreements, rather than proxy wars, is the key to stability – and to countering Iran’s expansionist endeavours. Tehran’s actions in the region – most potent in Syria and Yemen – cannot be overlooked. 116 missiles have been fired at Saudi Arabia from Yemen by Iranian-backed Houthis. At the same time, Saudi Arabia has in the past month made clear its intentions, alongside its allies, to seek a resolution to the war in Yemen.
The reality is that Iran has built its military presence – not "influence" but tangible forceful presence – in several Arab countries. Iranian militia men keep Syria stuck in the quagmire of war, along with its Russian ally and the brutal Assad regime. Arab leaders met in Dhahran only days after the Western strikes on Syria.
The renewed calls at the Arab League Summit for a political solution in Syria came with support for an international investigation into the use of chemical weapons in Syria. With the Russian, Iranian and Turkish efforts to lock out the UN and the Arab world from any durable solution, through the Astana process, it is both in the interest of the UN and the Arab League to work together for a lasting solution in Syria.
Many Arabs don’t pay much attention to Arab League Summits, with despondency from the lack of progress across the board. Of course Summits, whether for the Arab League, NATO or the United Nations, can never provide a solution in themselves. And there can be no denying that the Arab grouping is weak. However, that weakness is a reflection of the lack of will among certain member states for true co-operation.
Saudi Arabia, one of the founding members of the Arab League in 1946, has an opportunity to lead the grouping towards a stronger future. With its forceful domestic reform and international clout, the Kingdom is well placed to be the force that reshapes the League at a pivotal moment.
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UAE currency: the story behind the money in your pockets
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
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.”
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
The view from The National
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
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The five pillars of Islam