Nearly six months on from the signing of Al Ula declaration in Saudi Arabia that was aimed at rejuvenating Gulf unity, there is robust diplomatic activity between the neighbouring states of the region.
The January summit at the historic site ended the three-and-a-half-year rift between Qatar and the quartet of Saudi Arabia, the UAE, Bahrain and Egypt. Since then, dialogue and understanding has been steadily fostered between all parties.
Last week, Saudi Crown Prince Mohammed bin Salman received Qatari Emir Sheikh Tamim in Jeddah. This came after the Saudi Foreign Minister, Prince Faisal bin Farhan, travelled to Qatar to deliver an invitation from King Salman. Earlier this month, Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, visited Jeddah. Also, Bahrain's Crown Prince Salman bin Hamad was in Abu Dhabi this month.
Of his visit to Jeddah, Sheikh Mohamed said: "during a meeting today with my brother Prince Mohammed bin Salman... we discussed our strategic relations and common goals… We also exchanged views on several regional and international issues and explored our strengthened co-operation for the stability of our region."
The focus of co-operation is not just regional stability. In March, the UAE hosted a regional meeting on climate action. Similarly Prince Mohammed also discussed a massive reforestation project to support climate change efforts with his fellow Gulf and Arab leaders.
Climate change and extreme weather are challenges that affect everyone, as countries work to improve the quality of life for their people and boost economic prosperity.
Trade is another good way to illustrate how Gulf countries are further connected, both in terms of opportunities and risks.
The discovery of a large cache of illicit narcotics smuggled through Lebanon, hidden in fresh produce shipped to Gulf consumers, points to the risks. For the former, the UK has started formal steps for a free-trade agreement with the Arab Gulf countries. Both kinds of trade issues can perhaps be best managed together.
More broadly, economies of the Gulf Co-operation Council are set for a modest recovery this year, on the back of a "swift and substantial" response, to contain Covid-19 and an increase in oil prices. This is a solid base for the GCC from which to work.
Of course, there is also the threat of conflict, long standing when it comes to escalating tensions between Iran and Israel and more recently, the fear that the relentless barrage of Israeli air strikes on Gaza might tip the rest of the region into war, should militants in Lebanon or Syria fail to be reined in.
The GCC has made its position clear on the priorities for talks for a new nuclear deal between Iran and international powers. On this front, a satisfactory conclusion for Gulf countries would help reduce the risks for all sides.
Persistent problems such as climate change and energy and technological transitions sweeping through all economies around the world, will also need to be tackled collectively by Gulf nations. These issues stretch across physical borders.
The neighbours face many challenges but they are also crafting solutions between themselves. For example, the UAE and Bahrain have agreed to a travel corridor for people who have been vaccinated against Covid-19.
In Al Ula in January, the countries agreed to work together on a number of objectives, many of which were not related to any immediate crisis, but rather spoke to longer-term priorities such as: developing artificial intelligence capabilities, improving defence integration, fighting corruption jointly and empowering women and young people.
To succeed, Gulf countries will need to continue to work together at all levels, maintaining increased diplomatic activity and focusing on the future, as well as dealing with day-to-day crises, as and when they come up.
If the last 18 months have taught us anything, it is that we should take into account unexpected shocks. Anticipating those will help shape a realistic outlook, not just for the region but for the world at large.
As we navigate the post-pandemic reality, it is clear that closer co-operation between nations and institutions is of immense value. Solid ties between Gulf countries will help tackle whatever unforeseen circumstances come up in the future.
There are potentially exciting times for people who live in the region. Solutions for, say, the next pandemic or unforeseen climate events are being worked on. And when those come to fruition eventually, it is important to note that they will have been prepared now – starting in these past six months, when the foundation for a happier future was being laid together.
Mustafa Alrawi is an assistant editor-in-chief at The National
The six points:
1. Ministers should be in the field, instead of always at conferences
2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation
3. Emiratisation is a top priority that will have a renewed push behind it
4. The UAE's economy must continue to thrive and grow
5. Complaints from the public must be addressed, not avoided
6. Have hope for the future, what is yet to come is bigger and better than before
The biog
Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha
Favourite book: One Hundred Years of Solitude
Holiday destination: Sri Lanka
First car: VW Golf
Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters
Driverless cars or drones: Driverless Cars
How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
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.”
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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