A New York University base camp at the Helheim glacier in Greenland. The US is looking to strengthen its strategic position in the Danish territory and use it as a foothold for a wider presence in the Arctic. AP
A New York University base camp at the Helheim glacier in Greenland. The US is looking to strengthen its strategic position in the Danish territory and use it as a foothold for a wider presence in the Arctic. AP
A New York University base camp at the Helheim glacier in Greenland. The US is looking to strengthen its strategic position in the Danish territory and use it as a foothold for a wider presence in the Arctic. AP
A New York University base camp at the Helheim glacier in Greenland. The US is looking to strengthen its strategic position in the Danish territory and use it as a foothold for a wider presence in the

Who really deserves to rule the Arctic?


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Last week, US President Donald Trump's administration announced a $12.1 million aid package to Denmark – or more specifically, to the Danish territory of Greenland.

The announcement was made by the US ambassador to Copenhagen, Carla Sands, in an opinion piece in the Danish online daily Altinget.

Washington’s offer received polite and somewhat lukewarm enthusiasm from the Danish government and authorities in Nuuk, the capital of Greenland.

Opposition politicians in Copenhagen, who along with their fellow Danish mainlanders enjoy one of the highest qualities of life in the world, met the news with outrage, only some of which was justified.

Greenland is prized for its vast mineral wealth and prime geostrategic location. AP
Greenland is prized for its vast mineral wealth and prime geostrategic location. AP

There was much to be suspicious about in Ms Sands’s piece. First, it was framed almost entirely within the lens of geopolitics, rather than goodwill and concern for Greenlanders.

The larger goal, Ms Sands envisioned, was to create a “safe and stable Arctic”. Safe from what? Russia and China, said the ambassadors' article, which is largely focused on that argument.

China, as the piece elaborates, undeservedly “calls itself an Arctic state”, and Beijing's focus on building commercial links to the Arctic Circle is “particularly alarming” considering “how it pollutes its own land, water and air” at home.

There was not a hint of irony, given that Ms Sands’s boss, Mr Trump, has done more than most world leaders to dismantle the global climate science agenda and discredited environmental protection work in his own country.

Ms Sands’s talk of solidarity among Arctic Council nations appeared more suspicious still after the farcical, ultimately unsuccessful, geopolitical theatre that came with Mr Trump’s attempts last year to strong-arm Copenhagen into selling Greenland, the largest island on earth, to Washington.

Concerns about the US’s broader intentions aside, there is a more fundamental question that ought to be asked: does Greenland need the aid? The answer is undeniably yes.

Polar expedition participants fly out of an Arctic base camp on April 22, 2020. Airplanes remain the only option for long-range transport in most of the Arctic Circle. Alfred Wegener Institute via AP
Polar expedition participants fly out of an Arctic base camp on April 22, 2020. Airplanes remain the only option for long-range transport in most of the Arctic Circle. Alfred Wegener Institute via AP

For all the talk in the global development agenda about a "Global South", there is shockingly little about the existence of a Global Far North – an area of stark deprivation extending from Greenland through to parts of Russia and most of Arctic Canada.

If some Danish politicians have been alarmed or embarrassed by headlines suddenly categorising an area under their sovereignty as a potential ”aid recipient”, they should be.

The US’s ability to help the people of the Arctic is doubtful, but the nations that already rule over the region have not done a great deal better.

On its face, Greenland is a rich part of the world. It has a GDP per capita of $48,000. It became an object of desire for Washington because of its significant mineral wealth and its prime location as a potential centre in Arctic and Atlantic trade routes.

Unfortunately, little of this seems to matter for Greenlanders. If anything, it has spelt bad news.

The global market economy, in the form currently foisted upon most of the Arctic, tends to be highly unequal. It is neither diversified nor is it dynamic.

The region's vast resources require a comparably vast infrastructure in order to be extracted from its harsh landscape, and control is inevitably concentrated among a small handful of companies – often foreign multinationals, whose main shareholders live in far away southern latitudes.

The US's ability to help Arctic peoples is doubtful, but the nations already ruling the region have not done much better

For all of the infrastructure that is invested into extracting and shipping iron ore and other natural resources from the Arctic, there is still little to no regular connectivity for the people who live there, most of whom are indigenous Inuit.

There are no roads connecting Greenlandic towns and villages to one another. There are virtually none in the Canadian far north either.

The head of an Inuit-owned charter airline in Canada once described to me how deceptive our depictions of the Arctic on maps and globes can be.

The Arctic, he explained, should be thought of not as a series of expansive landmasses, but rather as an archipelago of populated islands akin to the island nations of the Pacific.

Although, unlike in the Pacific, maritime passenger transport is not really an option in the Arctic.

Expensive chartered flights are the only way in and out of most settlements and locals will be lucky to get on one.

Increasingly, young people board them to seek jobs or other prospects in bigger cities below the Arctic Circle, and they often never come back.

One in three Inuit children in Nunavut, northern Canada, is born into poverty. Getty
One in three Inuit children in Nunavut, northern Canada, is born into poverty. Getty

And you can see why they might not.

In Nunavut, an Arctic province of Canada, more than 50 per cent of Inuit are in households that have no food security. One in three children is born into poverty.

In Greenland, the poverty rate is 16 per cent, compared to less than 1 per cent on the Danish mainland. Sixteen per cent, it is worth noting, is a much more serious figure when the total population is only 56,000 – as it is in Greenland.

Poverty and associated problems such as alcoholism, abuse and depression touch the wider community much more intimately, and psychological traumas are shared.

The most devastating result of underdevelopment in the Arctic is revealed in the region’s average life expectancy.

In Greenland, it is just over 70 years – 10 years shorter than in Denmark. The gap becomes more depressing when one discovers that a major factor in bringing down the average is the rate of suicide.

Greenland has the highest suicide rate in the world, nearly 10 times that of Denmark. If Nunavut, Canada were its own country, its suicide rate would surpass even Greenland’s.

This grim statistic is often casually attributed to the Arctic’s long, dark winters and its punishing conditions.

But the suicide phenomenon in Greenland happens to coincide with the evolution of the 20th century global economic model and its impacts on Greenlanders’ way of life. Suicide figures until 1960 were 200 times lower than they are now.

This speaks to the tension between the loss of traditional ways of life and the lack of integration into new ones.

Colonisation of the Arctic has destroyed the prospect of keeping the region’s ancient lifestyles fully intact. Yet without a real and earnest investment in connecting the people living there to the rest of the world, there is no chance at getting the most out of modern developments either.

There will always be a geopolitical element to international development aid, and for the people of Greenland the idea of a foreign power making great promises and delivering more pain than prosperity will be nothing new.

But in her ill-judged attempts to shame China, Ms Sands did raise one interesting point: it is worth thinking about who really deserves to take on the role of steward in the Arctic.

Politicians in Copenhagen should certainly be asking themselves if they do.

Sulaiman Hakemy is deputy comment editor at The National

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.”

Pots for the Asian Qualifiers

Pot 1: Iran, Japan, South Korea, Australia, Qatar, United Arab Emirates, Saudi Arabia, China
Pot 2: Iraq, Uzbekistan, Syria, Oman, Lebanon, Kyrgyz Republic, Vietnam, Jordan
Pot 3: Palestine, India, Bahrain, Thailand, Tajikistan, North Korea, Chinese Taipei, Philippines
Pot 4: Turkmenistan, Myanmar, Hong Kong, Yemen, Afghanistan, Maldives, Kuwait, Malaysia
Pot 5: Indonesia, Singapore, Nepal, Cambodia, Bangladesh, Mongolia, Guam, Macau/Sri Lanka

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Innotech Profile

Date started: 2013

Founder/CEO: Othman Al Mandhari

Based: Muscat, Oman

Sector: Additive manufacturing, 3D printing technologies

Size: 15 full-time employees

Stage: Seed stage and seeking Series A round of financing 

Investors: Oman Technology Fund from 2017 to 2019, exited through an agreement with a new investor to secure new funding that it under negotiation right now.