The West’s military campaign is driven by the desire to placate the consciences of its leaders rather than a plan to change the trajectory of the Syrian conflict. Hassan Ammar / AP Photo
The West’s military campaign is driven by the desire to placate the consciences of its leaders rather than a plan to change the trajectory of the Syrian conflict. Hassan Ammar / AP Photo
The West’s military campaign is driven by the desire to placate the consciences of its leaders rather than a plan to change the trajectory of the Syrian conflict. Hassan Ammar / AP Photo
The West’s military campaign is driven by the desire to placate the consciences of its leaders rather than a plan to change the trajectory of the Syrian conflict. Hassan Ammar / AP Photo

The strikes in Syria need a long-term goal


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In the early hours of Saturday, American, British and French missiles struck three regime sites in Syria. The military response promised by US President Donald Trump in response to the chlorine gas attack on Douma by the Syrian regime took a week to materialise. The operation was, in the words of US Defence Secretary James Mattis, a "one-time shot"; it was over within an hour of its launch. The targets selected for destruction were a military command post, a chemical weapons storage facility in Homs and a research centre in the Syrian capital of Damascus. Mr Trump, who wants to be seen as proactive on Syria, said the attack was intended to act as a "strong deterrent against the production, spread and use of chemical weapons". His French counterpart, Emmanuel Macron, who envisages a role for himself as an international statesman and problem-solver, said it would send the message that the world would not tolerate the "normalisation of the use of chemical weapons". Theresa May, the British Prime Minister, having suffered a chemical poisoning on her doorstep, echoed Mr Macron's message.

But will these strikes really make a difference? Last year Mr Trump ordered limited strikes in response to the use of chemical weapons in Khan Sheikhoun. They, too, were meant to deter Mr Al Assad from deploying his chemical arsenal. But the fact that he marked the one-year anniversary of the attack by blitzing Douma with chlorine gas demonstrates the futility of such limited action. The military campaign by the coalition of the willing is driven by the commensurate desires of its three instigators being aligned, rather than being motivated by a cohesive, strategic plan to change the trajectory of the Syrian conflict by applying sustained force and compelling Mr Al Assad and his backers to negotiate. It is, simply put, a demonstrative statement; there is no strategy to speak of.

The potential for escalation – especially in a conflict with Russia, which has warned of grave consequences – is part of the reason for the West's reticence. Yet it is this very prospect of escalation that calls for a comprehensive strategy to end the war in Syria: the likelihood of a major clash between great powers will be high as long as Syria remains a conflict zone. Turkey has said the strikes were "appropriate" while Iran has made preposterous claims about "criminal" violations of international law while aiding and abetting Mr Al Assad's murderous rampages. All parties to the conflict are governed by their own self-interest but tokenistic gestures will do nothing to relieve the suffering of the Syrians. At the very most, they will reaffirm the message that chemical weapons will not be tolerated. Whether or not that message will be heeded in the absence of a military strategy that can actually go beyond taking out select military targets is a different matter. Mr Al Assad, who headed to work as normal yesterday and, bolstered by his Russian and Iranian allies, will plough on undaunted towards his target of crushing Syrian opposition once and for all.

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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