Now that Joe Biden has emerged the winner of the 2020 US presidential elections, despite the protests of the incumbent Donald Trump, speculation is rife over who will emerge as leaders of his administration, particularly in foreign policy.
While any president is mandated primarily to tackle internal challenges, this will be especially true for President-elect Biden. He will be dealing with the need to contain Covid-19, especially as the US now has had more than 11.1 million cases and 264,000 deaths, along with millions economically impacted.
When it comes to foreign policy, multilateralism and economic co-operation will be crucial. And while Mr Biden has clear policies on championing multilateralism and a number of other issues – including a return to the Paris climate agreement – other policies remain unclear. Particularly when it comes to his approach to the Middle East. Beyond his commitment to renegotiating a nuclear deal with Iran, little is known about how Mr Biden will steer his policies in the region. Some speculate that the new administration will build on the legacy of Barack Obama, as Mr Biden played an active role as his vice president. However, one thing is certain: the world Joe Biden and his administration will inherit is markedly different from the one with which Barack Obama finished his presidency.
Mr Biden will come into office as the Arab world marks the end of a tumultuous decade since the start of the Arab uprisings. While internal dynamics, local government decisions and regional alliances played central roles in how those uprisings unfolded and ended, the American role was of great significance.
The term “leading from behind” was used to describe the US approach to Libya, as the superpower shyly led the coalition to remove Muammar Qaddafi with no plans for the “day after”. In Syria, the now-famous walk back from the “red line” of the use of chemical weapons allowed Syrian President Bashar Al Assad and his allies to quell the uprising there. Continued lukewarm American support for the opposition, however, meant that internal strife went on for years without a resolution. Furthermore, it was during Mr Obama’s first year in office that the Iran also witnessed an uprising, the leaders of which remain under house arrest to this day.
In Iraq, Mr Obama was clear on his disengagement from the country, handing oversight of developments there to Mr Biden. Numerous sources confirm that it was Mr Biden who supported a new term for Nouri Al Maliki as Iraq’s prime minister in 2010, even though the non-sectarian, nationalist list of Ayad Allawi won a larger number of seats in the elections. Mr Biden and his allies in government were keen to support Mr Al Maliki, believing a politician who claims to represent a sectarian majority was more representative for Iraq. The sectarian prism in approaching Middle Eastern politics, adopted largely under the presidency of George W Bush and continued under Mr Obama, led to major divisions in the region. It has been damaging to both the region and to America’s standing there. A focus on sovereign, state-led relations ought to replace one on sectarianism.
During Mr Trump’s presidency, less emphasis was given to sectarian and internal divisions the Middle East, with a renewed focus on national interests and how they would fit in with American interests. That is one direct method that many in the region support and seek to continue.
While 10 years is too brief a timespan for a historical take on what happened in Syria, Egypt, Libya, Yemen and beyond, it has represented a lifetime of events for the people in the Middle East. Just like hopes and dreams have been dashed in countries like Syria, Libya and Yemen, so too have hopes in the role that the US can play in the region.
Some American officials believe that Arab and regional expectations of the US are unrealistic. That may be so. But the US continues to have unparalleled influence. Mr Biden and those working on his foreign policy agenda must understand how this region has changed, particularly in 2020.
The most high-profile and possibly strongest Iranian military leader was killed on January 3 of this year by an American drone strike, putting Iran on the back foot for the first time. The killing of Quds Force commander General Qassem Suleimani did not lead to renewed sectarian strife. Rather, it led to further pressure on sectarian entities.
Officials in the Arab world are clear-eyed on the pressing issues that Mr Biden faces – and realise that there are no silver bullets from Washington
A government in Iraq was formed beyond sectarian dogma and the Shia-Islamist Dawa party no longer controls the office of the Prime Minister. Lebanon is on the brink of economic collapse, but Hezbollah and its Amal supporters have now accepted entering into talks with Israel.
The concept of deterrence in the region has changed, as has the idea of peace, with the signing of the Abraham Accords. All this at a time that countries across the region are grappling with economic stresses, demanding better governance and competence.
Officials in the Arab world are quite clear-eyed on the pressing issues that Mr Biden will face when he gets to the White House – and realise that there are no silver bullets from Washington. But America’s approach and actions, especially in the first few weeks of the new administration, will be of utmost importance. Understanding the realities on the ground, rejecting sectarianism as an organising principle for the region and working with countries responding to the needs of their people will require clear signals and diplomacy.
Mina Al-Oraibi is editor-in-chief of The National
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How much do leading UAE’s UK curriculum schools charge for Year 6?
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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.”
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Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.