Much has happened in international relations of which we would never have dreamed a year ago. There have been challenges to the nature of the international order as we have known it in recent history. They are likely to stay with us for a while
They are not all as defiant of the Arab regional order as the Arab uprisings of 2011, the effects of which have yet to be thoroughly appreciated, beyond the regional milestone of the Tunisian transitional road map. In Tunis, there has been a peaceful exchange of power between the former president and leftist human rights activist Moncef Marzouki, and newly elected Caid Sebsi, 88, who was once associated with the old guard.
For years, the European, and by extension western communities, had become accustomed to the notion that nation-states were inviolable. Even beyond their borders, there might be invasions, such as Iraq in 2003, but no one thought the US-led coalition, disastrous though it might have been, would annex Iraq. That sort of wanton territorial grab was unthinkable in the 21st century. At least, until 2014.
Then, the Ukrainian uprising led to the departure of one government, but it was a bitter sweet victory. Russia’s Vladimir Putin gave the order to invade the Ukranian territory of Crimea, and before long, had annexed it in a move that most Crimeans seemed to want. The repercussions of that maleficent invasion and occupation ought to send shock waves through the international system because it showed up its weaknesses.
But how strong is that system, anyway? An international border between two other countries was also ripped up in 2014, this time, by a transnational radical group which is more brutal than any other militant organisation the world has known in this century. ISIL’s rise should have been expected. It was certainly discussed in western corridors of power and some warned against it, but this time last year, no one outside a small core of specialists had any idea what it was. This time next year, it’s still probably going to exist, but 2014 saw not only its rise, but probably also its peak in terms of controlling contiguous territory.
What is perhaps more important to watch for is that in a year from now, ISIL is not likely to take yet more massive parts of Syria and Iraq. Instead, it is likely to continue its status as the foremost recruiter among radical militant organisations anywhere in the world. Its appeal remains, and until the root causes of that appeal are dealt with, ISIL will be able to attract recruits. That said, some may argue that if it doesn’t gain territory and starts to lose it instead, some of ISIL’s appeal may diminish. But diminish does not mean disappear.
This will have an effect far beyond Iraq and Syria. It affects Arab states much further afield and western countries as well. The phenomenon of foreign fighters isn’t likely to be less important this year and its effects on the international system will definitely be felt. States won’t simply continue to discuss travel controls. Instead, the crucial discussion about citizenship, and the removal of it for European foreign fighters, is unfortunately likely to continue and deepen. Europe in 2016 might decide that a commitment to citizenship is the bedrock of the nation-state because of the extent to which it will have been brought into question. It goes without saying that should there ever be an ISIL attack on western targets on their home turf, the repercussions at home and abroad could be substantial.
There might be stronger commitment to rule of law in one other circumstance as well – that festering sore within the modern Arab world, the accession of the state of Palestine to the International Criminal Court (ICC).
A solution to the political quagmire between Palestinians and Israelis looks as far off as it has ever been, but the Palestinians’ accession to the ICC brings in an additional legal element, which could perhaps act as a way to apply legal pressure.
Even so, a year from now, no one should be under any illusion: the West Bank and the Gaza strip will likely still be the occupied Palestinian territories, and the Gazans will still be under siege though one prays that they will not have to suffer as they did in 2014.
Finally, in my home country, the UK, there will be a general election this year. We all expect that the people of the United Kingdom will deliver another hung parliament, cementing a new type of politics that requires a cross-party consensus to govern. No one knows what that will look like, but given the influence Britain continues to exert on Europe and in international forums, the election remains important far beyond the British Isles.
The past year created a certain dynamic that will probably and substantially have enormous impact in 2015 and beyond.
Dr HA Hellyer is an associate fellow of the Royal United Services Institute in London, and the Centre for Middle East Policy at the Brookings Institution in Washington, DC
On Twitter: @hahellyer
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
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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Euro 2020
Group A: Italy, Switzerland, Wales, Turkey
Group B: Belgium, Russia, Denmark, Finland
Group C: Netherlands, Ukraine, Austria,
Georgia/Kosovo/Belarus/North Macedonia
Group D: England, Croatia, Czech Republic,
Scotland/Israel/Norway/Serbia
Group E: Spain, Poland, Sweden,
N.Ireland/Bosnia/Slovakia/Ireland
Group F: Germany, France, Portugal,
Iceland/Romania/Bulgaria/Hungary
Omar Yabroudi's factfile
Born: October 20, 1989, Sharjah
Education: Bachelor of Science and Football, Liverpool John Moores University
2010: Accrington Stanley FC, internship
2010-2012: Crystal Palace, performance analyst with U-18 academy
2012-2015: Barnet FC, first-team performance analyst/head of recruitment
2015-2017: Nottingham Forest, head of recruitment
2018-present: Crystal Palace, player recruitment manager
Gulf Under 19s final
Dubai College A 50-12 Dubai College B
COMPANY PROFILE
Name: Akeed
Based: Muscat
Launch year: 2018
Number of employees: 40
Sector: Online food delivery
Funding: Raised $3.2m since inception
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