Russian Prime Minister Dmitry Medvedev speaks at the 52nd Security Conference in Munich in 13 February 2016. Andreas Gebert / EPA
Russian Prime Minister Dmitry Medvedev speaks at the 52nd Security Conference in Munich in 13 February 2016. Andreas Gebert / EPA
Russian Prime Minister Dmitry Medvedev speaks at the 52nd Security Conference in Munich in 13 February 2016. Andreas Gebert / EPA
Russian Prime Minister Dmitry Medvedev speaks at the 52nd Security Conference in Munich in 13 February 2016. Andreas Gebert / EPA

This is not the beginning of a new Cold War


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Russian prime minister Dimitry Medvedev warned on Saturday that the world has been thrust into a new Cold War. Citing conflicts in Ukraine and Syria, Mr Medvedev said that “almost every day we [Russia] are accused of making new horrible threats either against Nato as a whole, against Europe, or against the US or other countries”. During an international security conference in Munich, US secretary of state John Kerry and other world leaders responded to the comments by renewing calls for Russia to abide by all aspects of the Minsk agreement to end hostilities in Ukraine.

The fault lines in Syria and Ukraine have presented serious challenges to the world order established after the fall of the Soviet Union. Russia has solidified its military might and shown a willingness to use it in neighbouring countries and farther afield. At the same time, Nato has expanded into Russia’s traditional sphere of influence in places such as Estonia and Lativa. While these geopolitical movements could be narrowly understood as the beginnings of a new Cold War, there are many other factors at work that discount the prospect of another such stand-off between Russia and the West.

The Cold War was fought between nations vying for global influence. A balance of power emerged as the conflict intensified. There were episodes where state power was challenged by non-state actors such as the mujahideen, but they were supported and trained by the United States to weaken the Soviet Union in Afghanistan.

Today, the picture is muddier. From extremist groups such as ISIL and Al Qaeda to rogue regimes such as North Korea, asymmetrical forces operate outside of the influence of the United States and Russia. This is doubly worrying because these groups have a demonstrated willingness to use force recklessly and without warning. The concept of mutually assured destruction, which prevented the superpowers from attacking each other, no longer applies.

In conflict areas like Syria, warring factions multiply, shift allegiances and use force indiscriminately. State borders are being destroyed, leaving the international community without traditional definitions for who is fighting whom. It is this situation that threatens the world order and demands cooperation between traditional superpowers such as Russia and the US to overcome the new challenges that face us all.

The Old Slave and the Mastiff

Patrick Chamoiseau

Translated from the French and Creole by Linda Coverdale

Company profile

Name: Steppi

Founders: Joe Franklin and Milos Savic

Launched: February 2020

Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year

Employees: Five

Based: Jumeirah Lakes Towers, Dubai

Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings

Second round raised Dh720,000 from silent investors in June this year

At Everton Appearances: 77; Goals: 17

At Manchester United Appearances: 559; Goals: 253

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”