Turkey still has a major role to play in the Syrian conflict. Ilyas Akengin / AFP
Turkey still has a major role to play in the Syrian conflict. Ilyas Akengin / AFP

Iran, Russia, Turkey and the future of Assad’s Syria



A story in Al Hayat newspaper on February 18 highlighted the convoluted nature of foreign interventions in Syria. The article noted that the United States was studying three plans for the takeover of Raqqa from ISIL. One of those plans was presented by Turkey, which does not want to see the Kurdish-dominated Syrian Democratic Forces entering the city.

However, limiting Turkey’s intentions in Syria to blocking the emergence of a Kurdish entity is short-sighted. Ankara is also angling for a role in a post-war Syria. Surprisingly, it seems to have been assisted in this by Russia, which sponsored the Astana negotiations with Turkey and Iran, and has been helping the Turkish military advance against ISIL in Al Bab.

Russian openness to participation by Turkey in a post-war arrangement derives from a realistic reading of Bashar Al Assad’s weaknesses. The Syrian president, in a statement last week, vowed to regain control over “every inch” of Syrian territory. However, there are not enough Syrian ground forces to do such a thing, nor is Mr Al Assad, given his regime’s terrible crimes, in a position to lead post-war reconciliation.

In that context, then, the Russians may have seen an opening to bring in Turkey and Iran to help shape a post-war situation that could better stabilise Syria. One issue it has discussed with both sides is the creation of a military council alongside a government of national accord, which would gather together government and opposition military commanders.

The true role of such a council remains a matter of speculation. A report in Al Araby Al Jadeed in July 2016 suggested that the idea was also discussed by the United States and Russia. While Mr Al Assad could see it as a mechanism to neutralise his foes and consolidate his control over the state, he must also be wary that it might render him redundant, while ensuring that his eventual exit does not undermine a post-war agreement.

Whatever the explanation, Mr Al Assad must view Russian collaboration with Turkey as inherently threatening. It brings Ankara into any political solution that the Syrian president today feels confident he should manage alone, given his regime’s decisive military gains in recent months.

But the Russians appear to be thinking beyond that. They realise that there are tens of thousands of armed men in the opposition who have to be brought under control, and they can see that for as long as Mr Al Assad is in power, it will be impossible to rebuild Syria. Both realities underline how difficult it will be to consolidate a post-war order under present circumstances, regardless of whether the opposition is defeated.

That is where Turkey’s role is vital. The Turks alone control the lifeline of many of the opposition groups, and even of powerful radical groups such as Jabhat Fatah Al Sham (formerly Jabhat Al Nusra), so their participation in a settlement is essential. Moreover, someone in the region has to be able to speak on behalf of Sunni interests in Syria, and Ankara alone, backed by the Arab Gulf states, has that capacity today.

That could be one reason why the Turkish military intervention in Syria last August may have been approved by the Russians, in exchange for Turkey’s withdrawal of a large number of opposition combatants from Aleppo and their redeployment to the border region. That move paved the way for Aleppo’s downfall, but it also brought the Turks into Syria, making inevitable their involvement in a political endgame.

All this indicates strongly that Syria may be heading towards a more decentralised system in the future. A return to the pre-2011 period is difficult to conceive today. If Turkey builds up its leverage in Syria, this is likely to be exercised mainly in zones of influence along the Turkish border, where Syrian refugees now in Turkey would be settled. It is almost fanciful to imagine that Mr Al Assad’s authority will stretch to these areas. That Russia seems to accept this is revealing in itself.

Nor does it appear that Iran would oppose such a step if its own interests are preserved in Syria, above all maintaining supply lines to Hizbollah in Lebanon. Mr Al Assad may have to accept that his power has been so diminished by his reliance on outside powers for his regime’s survival that his say in any final outcome in Syria will be relatively limited.

With the Russian, Iranian, and Turkish militaries on his soil, the Syrian president is hardly in an enviable position. His country will remain buffeted by foreign political agendas. This was brought home in a brutal way by the fact that the Astana negotiations were sponsored by Russia, Turkey and Iran, which largely drafted the final communiqué between themselves, while the Syrian participants were virtual bystanders.

Michael Young is a writer and editor in Beirut

On Twitter: @BeirutCalling

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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.”