US Secretary of State Mike Pompeo is received by Saudi Foreign Minister Adel Al Jubeir in Riyadh, Saudi Arabia. Saudi Press Agency / AP
US Secretary of State Mike Pompeo is received by Saudi Foreign Minister Adel Al Jubeir in Riyadh, Saudi Arabia. Saudi Press Agency / AP

Pompeo's firm stance on Tehran's aggression could have profound implications for regional stability



It is less than a week into his tenure as the new US Secretary of State but already Mike Pompeo is pinning his colours to the flag and demonstrating where his priorities lie. He began with a trip on Thursday to Brussels, where he impressed Nato leaders, recognising as "invaluable" an institution his boss Donald Trump had once written off as "obsolete". Mr Pompeo also distanced himself from his ineffectual predecessor Rex Tillerson by speaking stridently of the flawed Iran nuclear deal, noting that "absent a substantial fix, absent overcoming the flaws of the deal", the US president is unlikely to recertify it. On Saturday, he landed in Riyadh with a clear sense of purpose for the start of a Middle Eastern trip that includes Jerusalem and Amman. The locations for his first official tour of duty were selected, the state department said, to reflect their "importance as key allies and partners in the region". That special US-Saudi relationship has rarely been more crucial to security and peace in the region than it is now. With multiple threats from conflicts in Syria and Yemen, Iran's destabilisation attempts and Qatar's collusion with and funding of extremists, such alliances are vital to seeking long-term political solutions. Mr Pompeo's visit will also offer a chance to raise the issue of the controversial US embassy move next month from Tel Aviv to Jerusalem, a decision which has potentially catastrophic repercussions for the region.

Mr Pompeo, who previously visited the Middle East as CIA director last year, is well-versed in the region's most pressing issues. His appearance was in marked contrast to Mr Tillerson, who was fired from the post last month and whose budgetary and staff cuts compromised the State Department's ability to advance US interests abroad, to the extent that Iran, Turkey and Russia have been able to exploit the subsequent power vacuum to their advantage. Tehran, above all, has taken steps to destabilise countries across the region,where it has funded, trained and armed its proxies. In Yemen, it continues to back the Houthis, who regularly hurl missiles into Saudi Arabia. With the May 12 deadline to recertify the Iran nuclear deal looming, it is reassuring that Mr Pompeo is well-versed in Tehran's aggression. In him, the US has a chief diplomat who can speak for its president and at a time of great tumult, his decision to visit Saudi Arabia in his first week on the job is greatly encouraging.

His meetings with King Salman and Crown Prince Mohammed bin Salman have given the two countries a chance to discuss the region's key priorities. The warm reception that awaited Mr Pompeo on the runway in Riyadh suggests they took full advantage of that opportunity. Appearing alongside Foreign Minister Adel Al Jubeir, Mr Pompeo stressed the need for unity in the Gulf and rightly labelled Iran "the greatest sponsor of terrorism in the world". In a few days, Mr Pompeo has already shown his mettle. At a moment of great complexity, his ability to project US power in concert with its Saudi allies has potentially profound implications for the security of a volatile region.

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

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%3Cp%3E%3Cstrong%3EEngine%3A%20%3C%2Fstrong%3E2.0-litre%20four-cyl%20turbo%20%2B%20mild%20hybrid%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E204hp%20at%205%2C800rpm%20%2B23hp%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E320Nm%20at%201%2C800rpm%20%2B205Nm%20hybrid%20boost%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3E9-speed%20auto%0D%3Cbr%3E%3Cstrong%3EFuel%20consumption%3A%20%3C%2Fstrong%3E7.3L%2F100km%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENovember%2FDecember%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh205%2C000%20(estimate)%3C%2Fp%3E%0A
The specs: 2018 Nissan Altima


Price, base / as tested: Dh78,000 / Dh97,650

Engine: 2.5-litre in-line four-cylinder

Power: 182hp @ 6,000rpm

Torque: 244Nm @ 4,000rpm

Transmission: Continuously variable tranmission

Fuel consumption, combined: 7.6L / 100km

THE LIGHT

Director: Tom Tykwer

Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger

Rating: 3/5

The Brutalist

Director: Brady Corbet

Stars: Adrien Brody, Felicity Jones, Guy Pearce, Joe Alwyn

Rating: 3.5/5

Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

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.”

MISSION: IMPOSSIBLE – FINAL RECKONING

Director: Christopher McQuarrie

Starring: Tom Cruise, Hayley Atwell, Simon Pegg

Rating: 4/5

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

From Europe to the Middle East, economic success brings wealth - and lifestyle diseases

A rise in obesity figures and the need for more public spending is a familiar trend in the developing world as western lifestyles are adopted.

One in five deaths around the world is now caused by bad diet, with obesity the fastest growing global risk. A high body mass index is also the top cause of metabolic diseases relating to death and disability in Kuwait,  Qatar and Oman – and second on the list in Bahrain.

In Britain, heart disease, lung cancer and Alzheimer’s remain among the leading causes of death, and people there are spending more time suffering from health problems.

The UK is expected to spend $421.4 billion on healthcare by 2040, up from $239.3 billion in 2014.

And development assistance for health is talking about the financial aid given to governments to support social, environmental development of developing countries.

 

Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5