Congress’s vote to override president Barack Obama’s veto of the Justice Against Sponsors of Terrorism Act (Jasta) was both embarrassing and irresponsible. The bill amends the Foreign Sovereign Immunities Act to allow United States citizens to sue foreign governments and entities for damages resulting from acts of terrorism committed on American soil on or after September 11, 2001.
Clearly directed at the government of Saudi Arabia, Jasta has caused enormous concern and not only in that country. In his veto statement, Mr Obama cited three reasons for his strong opposition to the it.
In the first place, it takes the authority to determine whether a state has become a sponsor of terrorism away from the federal government and places it in the hands of local courts which the president noted could make “consequential decisions ... based upon incomplete information ... [about] the culpability of individual foreign governments and their role in terrorist activities against the United States”. This, he argued, is “neither an effective nor a coordinated way for us to respond to indications that a foreign government might have been behind a terrorist attack”.
Mr Obama went on to note that the US takes its responsibility seriously and only designates a foreign government as a state sponsor of terrorism after national security, foreign policy and intelligence professionals carefully review all the available information. The implication of his argument is that it is dangerous to take this serious process out of the hands of the professionals and turn it over to tort lawyers, juries and local judges.
The president’s second concern was that in passing this bill, Congress has upended the long-standing principle of foreign sovereign immunity. This, he warned, would open the door for other governments to pass similar legislation that would allow their domestic courts to hold the US liable for actions committed by US personnel or “members of an armed group that received US assistance ... or abuses committed by police units that received US training”. This would put the assets of the US and the foreign holdings of American businesses at risk.
Finally, Mr Obama noted that Jasta would create complications in America’s relationships with even its closest partners, endangering its ability to seek their cooperation on key national security issues.
In overriding the strong case the president made in issuing his veto, Congress acted in a manner that was irresponsible, dangerous and damaging to the national interests of the United States. Most disturbing was the fact that, on the day of the vote, 28 senators released a letter in which they acknowledged that the bill was flawed, pledging to “fix” it in the next term. They understood that they were wrong and still voted to override the veto.
The problem is that damage has been done that no “fix” will cure. Jasta has shaken Arab trust in the United States, putting at risk business partnerships and national security relationships.
I have already heard from Arab businessmen who are saying that they are reconsidering investments in and partnerships with American businesses.
While members of Congress will argue that they passed Jasta out of concern for the families of the victims of the September 11 terror attacks, their motives were simply not that pure. More to the point, I suspect that they were motivated by crass opportunism: exploitation of the continued pain of the families of September 11 victims, the pervasiveness of anti-Arab sentiment – with Saudi Arabia being an especially soft target – and electoral considerations.
In voting to override Mr Obama’s veto, members of Congress ignored the fact that there is no evidence that the government of Saudi Arabia was responsible for the terrorist attacks. As the White House spokesperson made clear after the vote, the US September 11 Commission Report “concluded that they were not able to find any evidence that the Saudi government as an institution or that any senior Saudi government official were knowingly supportive of the September 11 plotters”.
That being the case and that being known by members of Congress, one might reasonably ask why they wouldn't have been honest with the families of the victims – and their lawyers who were pressing them to act – and warned them of the dangers and the ultimate disappointment of moving down this path? Was it because they lacked political courage or was it because in an election year they took the more expedient path of passing Jasta?
Here’s what might happen now. The tort lawyers who represent the families will try to shop around for a friendly jurisdiction in which to file. They will hope to make their case before a sympathetic jury, playing on their fears and prejudices. Any decision that is made will be appealed and, at some level, will be overturned. Along the way, both the Saudi government and the families will pay millions in legal fees; more damage will be done to US-Arab relationships; and, in the end, no one will benefit except the lawyers.
The problem is that the members of Congress who created this heartbreaking mess for the families, the United States and the US-Arab relationship will most probably not be held accountable or feel responsible for what they have done.
Dr James Zogby is president of the Arab American Institute
On Twitter: @aaiusa
How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
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.”
Abaya trends
The utilitarian robe held dear by Arab women is undergoing a change that reveals it as an elegant and graceful garment available in a range of colours and fabrics, while retaining its traditional appeal.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
About Okadoc
Date started: Okadoc, 2018
Founder/CEO: Fodhil Benturquia
Based: Dubai, UAE
Sector: Healthcare
Size: (employees/revenue) 40 staff; undisclosed revenues recording “double-digit” monthly growth
Funding stage: Series B fundraising round to conclude in February
Investors: Undisclosed
Fixtures
50-over match
UAE v Lancashire, starts at 10am
Champion County match
MCC v Surrey, four-day match, starting on Sunday, March 24, play starts at 10am
Both matches are at ICC Academy, Dubai Sports City. Admission is free.
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Jebel Ali Dragons 26 Bahrain 23
Dragons
Tries: Hayes, Richards, Cooper
Cons: Love
Pens: Love 3
Bahrain
Tries: Kenny, Crombie, Tantoh
Cons: Phillips
Pens: Phillips 2