Given Iran and Israel's continued exchange of fire since Friday morning, it comes as no surprise that the latest round of talks between the US and Iran, which were to be held in Oman yesterday, were cancelled.
What began as assassinations and precision strikes on military and nuclear installations inside Iran have now evolved into a full-blown conflict, increasing the number of civilians killed on both sides. The war between the two countries is no longer confined to targeted attacks.
In Iran, missile strikes have damaged critical oil refineries and energy infrastructure. In Israel, retaliatory ballistic attacks have reached cities and strategic sites such as Haifa Port, underscoring how swiftly such escalations can affect countries, disrupt the equilibrium of ordinary people’s daily lives, and destabilise markets, businesses and travel, with international commercial flights being rerouted.
The conflict is already spreading. The Iran-backed Houthis in Yemen have widened their involvement, while Iraqi militias aligned with Tehran have called for the accelerated departure of US troops from the country.
The Middle East has long been burdened by the scars of past wars. It cannot afford another protracted, region-wide conflict. In the latest conflagration, Gaza’s humanitarian crisis risks being sidelined as long as the Iran-Israel attacks continue.
Amid all this, Israeli Prime Minister Benjamin Netanyahu’s recent public call for the Iranian people to rise up against their government is troubling. It suggests that Israel’s aims go beyond its long-stated goal of degrading Iran’s nuclear programme and include regime change in Tehran. Such provocative rhetoric signals a dangerous shift in Israel's strategic intent. Such a war would lead to even greater damage.
As world leaders gather in Alberta, Canada for the G7 summit this week, discussions will inevitably centre around the Israel-Iran attacks, besides trade, tariffs and the global economy. The G7 must move beyond expressions of concern and exert tangible diplomatic pressure on both countries to de-escalate immediately, with clear consequences laid out if they do not.
Specifically, the G7 must use whatever influence it has with Israel to halt its military campaign and draw Iran back to the negotiating table with the US regarding its nuclear programme. A strong and renewed diplomatic effort towards meaningful dialogue – which the UAE and other regional powers have called for – is the only way to prevent further civilian suffering and death. Germany, France and Britain are reportedly ready to hold immediate talks with Iran. The onus, as always, remains with the US to restrain the Israeli leadership.
The current Israeli government must not be allowed to act as a rogue power it has been in recent months by using its military advantage to pursue destabilising objectives – not only against Iran but also in the occupied Palestinian territories, Lebanon and Syria. Continued impunity will only fuel further instability, that would erode international norms and do little to keep Israel secure.
The G7 summit lends an opportunity to the leaders of the world’s most powerful economies, at this juncture, to reaffirm the need and relevance of multilateralism. Co-ordinated action on this crisis could help restore faith in collective security mechanisms at a time when global co-operation is thought to be, at best, an increasingly irrelevant concept.
The window to act is narrowing. The international community must respond with clarity, resolve and urgency. Failing to do so could result in this war spiralling into an even wider one that could reshape the region in unwanted ways for decades to come.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
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SERIES INFO
Afghanistan v Zimbabwe, Abu Dhabi Sunshine Series
All matches at the Zayed Cricket Stadium, Abu Dhabi
Test series
1st Test: Zimbabwe beat Afghanistan by 10 wickets
2nd Test: Wednesday, 10 March – Sunday, 14 March
Play starts at 9.30am
T20 series
1st T20I: Wednesday, 17 March
2nd T20I: Friday, 19 March
3rd T20I: Saturday, 20 March
TV
Supporters in the UAE can watch the matches on the Rabbithole channel on YouTube
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.”
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
Sunday's Super Four matches
Dubai, 3.30pm
India v Pakistan
Abu Dhabi, 3.30pm
Bangladesh v Afghanistan
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Pakistan T20 series squad
Sarfraz Ahmed (captain), Fakhar Zaman, Ahmed Shahzad, Babar Azam, Shoaib Malik, Mohammed Hafeez, Imad Wasim, Shadab Khan, Mohammed Nawaz, Faheem Ashraf, Hasan Ali, Amir Yamin, Mohammed Amir (subject to fitness clearance), Rumman Raees, Usman Shinwari, Umar Amin
UAE currency: the story behind the money in your pockets