ISIL has fed on sectarianism and anti-western sentiment to increase its ranks and encourage other groups to pledge allegiance.
ISIL has fed on sectarianism and anti-western sentiment to increase its ranks and encourage other groups to pledge allegiance.
ISIL has fed on sectarianism and anti-western sentiment to increase its ranks and encourage other groups to pledge allegiance.
ISIL has fed on sectarianism and anti-western sentiment to increase its ranks and encourage other groups to pledge allegiance.

Far from disrupting old orders, ISIL is cementing them


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Several months of fighting have done little to dislodge ISIL. The Pentagon acknowledged in January that the jihadist group had only lost 1 per cent of its territory in Iraq.

Meanwhile, the group acquired some following in North Africa, is reportedly preparing to declare an emirate in Lebanon and has threatened members of the US-led campaign. ISIL has fed on sectarianism and anti-western sentiment to increase its ranks and encourage other groups to pledge allegiance.

This has led to a widespread belief that it is redrawing the Middle East map. In actuality it is cementing rather than challenging the regional order.

The Arab Spring brought down four regimes and threatened other positions. Thanks to the rise of ISIL and other extremist groups, however, they are now sitting more comfortably. Once-restive populations have grown relatively silent, concerned their countries may end up like Iraq, Syria, Libya or Yemen.

ISIL has, to some extent, papered over divisions among populations regarding government policies, particularly those relevant to security and law and order. With every threat against a country and every brutal execution, people rally around their leaders. Examples this year alone include the beheadings of Egyptians in Libya, and the burning alive of Jordanian pilot Maaz Al Kassasbeh.

As a result, divisions in Jordan about the wisdom of joining the US-led campaign against ISIL have given way to calls for King Abdullah to increase his country’s military involvement in the coalition. Egyptian president Abdel Fattah El Sisi, too, is pushing himself to the forefront of a “war on terror”, a mantra that is being echoed by his regional counterparts, often in coordination with each other and with foreign powers.

The collective message is that stability and security come above all else. Western governments belatedly criticised state abuses in the wake of the Arab Spring. However, they – as well as Russia and China – are once again turning a blind eye in favour of securing reliable partners for their own political, economic and military gain.

In a fundamentally flawed view of ISIL’s defeat as the end game, and one that must be achieved at all costs, there are growing calls in the West to resume ties with Syrian president Bashar Al Assad. For such proponents, ISIL’s barbarity has whitewashed Mr Al Assad’s record and never mind that it had destroyed the country before the rise of the jihadists.

The UN has been clear about Mr Al Assad’s primary culpability. Last September, the head of the UN commission investigating war crimes in Syria said the regime “remains responsible for the majority of the civilian casualties, killing and maiming scores of civilians daily”.

In April, UN human rights chief Navi Pillay said regime atrocities “far outweigh” those of the opposition, and the former is “mostly responsible” for human rights violations.

“You cannot compare the two,” she added. Meanwhile, the US-led campaign against ISIL has enabled Mr Al Assad to intensify assaults on opposition groups.

Similarly, arms are flowing to Baghdad, which has systematically alienated Iraq’s Sunni Arabs, indiscriminately bombed civilian areas, committed atrocities and watched as allied militias have done the same. There is no longer much thought given to how the policies of Baghdad and Damascus have provided fertile ground for ISIL and its ilk, as if the jihadists popped up out of nowhere and for no reason.

Officials in the US-led campaign have said the war against ISIL could take years, even decades. The Middle East’s leaders and their foreign allies would be mistaken in thinking that the region’s peoples will indefinitely forgo their basic rights in the name of security.

Sharif Nashashibi is a journalist and analyst on Arab affairs

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.”

Australia (15-1): Israel Folau; Dane Haylett-Petty, Reece Hodge, Kurtley Beale, Marika Koroibete; Bernard Foley, Will Genia; David Pocock, Michael Hooper (capt), Lukhan Tui; Adam Coleman, Izack Rodda; Sekope Kepu, Tatafu Polota-Nau, Tom Robertson.

Replacements: Tolu Latu, Allan Alaalatoa, Taniela Tupou, Rob Simmons, Pete Samu, Nick Phipps, Matt Toomua, Jack Maddocks.

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Five ways to get fit like Craig David (we tried for seven but ran out of time)

Start the week as you mean to go on. So get your training on strong on a Monday.

Train hard, but don’t take it all so seriously that it gets to the point where you’re not having fun and enjoying your friends and your family and going out for nice meals and doing that stuff.

Think about what you’re training or eating a certain way for — don’t, for example, get a six-pack to impress somebody else or lose weight to conform to society’s norms. It’s all nonsense.

Get your priorities right.

And last but not least, you should always, always chill on Sundays.

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Sukuk

An Islamic bond structured in a way to generate returns without violating Sharia strictures on prohibition of interest.

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MATCH INFO

What: 2006 World Cup quarter-final
When: July 1
Where: Gelsenkirchen Stadium, Gelsenkirchen, Germany

Result:
England 0 Portugal 0
(Portugal win 3-1 on penalties)