Saudi move to build bridges with Iran should have a positive effect in region



Over the past few weeks, the Arab world has seen multiple changes. Old alliances – such as the one between Egypt and Saudi Arabia – have been reaffirmed, while presidential and legislative elections are taking place in many countries in the region.

Against this backdrop, Saudi Arabia’s extended invitation to Iran to send a representative to Riyadh has given rise to different reactions in the Arabic media.

“Opinion in the Saudi media reflected apprehension, as some considered the invitation to be an outcome of diplomatic concerns that should be taken lightly, while others rushed to depict Iran as a four-dimensional monster,” wrote Teraad Al Ammri, in the pan-Arab daily Al Hayat.

The first element that causes concern is Iran’s interference in Arab countries’ internal affairs. The second one is the sectarian tension between Sunnis and ­Shiites. The third is Iran’s wish to impose its political dominance over the region and the last one is Iran’s growing military power and the ambiguity surrounding its nuclear ambitions, he said.

“Such fear is unjustified and unrealistic. It is but an illusion that was widely promoted in one way or another, portraying Iran as a ‘political monster’. Our view is that such illusions are likely to turn into a self-fulfilling prophecy that will stand as a major obstacle to relations between the two countries if wise politicians fail to break these illusions and shed light on them,” added Al Ammri.

Writing in the pan-Arab daily Asharq El Awsat, the columnist Abdallah Al Mahajarani pointed out six essential topics that need to be discussed by the Saudi and Iranian foreign ministers in the following order: Syria, Iraq, Lebanon, Bahrain, Palestine and Yemen.

He highlighted two important matters. One is that “both Saudi Arabia and Iran have the power, capabilities, legitimacy and deep influence to solve the series of crises in the region, or in the Muslim world in general”.

The other one is that “politics is described as a science or the art of possibilities. They are neither about distant dreams nor wishes. In politics, one has to keep the reality in mind. According to Hindu philosophy, one must use three eyes while seeking a strategy to achieve goals and reach the destination. One of them must be kept on the horizon [on our dreams and wishes], the second one on reality and the third on both.

“Saudi Arabia and Iran can find a positive solution for everyone in the region, one through which both will achieve victory. Furthermore, they can play a larger role in the world if they focus on a common regional strategy,” concluded Al Mahajarani.

The columnist Abdul Rahman Al Wabli wrote in the Saudi daily Al Watan that “dialogue is a means of communication and understanding among human beings, whether individuals, groups or states, and life is solely possible through it. The absence thereof will lead to the absence of understanding and comprehension. They will be replaced with misunderstanding and hatred, leading to conflicts, clashes and wars”.

He considered Saudi Arabia’s initiative as “a starting point to reach an understanding between both countries on absurd and unjustified disputes and conflicts that are going on in the region, as these conflicts have a negative impact on peace and security in Saudi Arabia, Iran and the wider region”.

The Saudi government initiated the dialogue to protect the area from disputes and conflicts.

“Nothing guarantees that these initiatives will lead to predefined and speedy solutions, but they will certainly cool down the current atmosphere and establish strategic understandings in the medium and long term”, Al Wabli observed.

CMirza@thenational.ae

PROFILE

Name: Enhance Fitness 

Year started: 2018 

Based: UAE 

Employees: 200 

Amount raised: $3m 

Investors: Global Ventures and angel investors 

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

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  • Place a sun reflector in your windshield when not driving
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The Outsider

Stephen King, Penguin

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Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
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A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

Banned items
Dubai Police has also issued a list of banned items at the ground on Sunday. These include:
  • Drones
  • Animals
  • Fireworks/ flares
  • Radios or power banks
  • Laser pointers
  • Glass
  • Selfie sticks/ umbrellas
  • Sharp objects
  • Political flags or banners
  • Bikes, skateboards or scooters

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.”

Key figures in the life of the fort

Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.

Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.

Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.

Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.

Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.

Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.

Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.

Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.

Sources: Jayanti Maitra, www.adach.ae

Tips for entertaining with ease

·         Set the table the night before. It’s a small job but it will make you feel more organised once done.

·         As the host, your mood sets the tone. If people arrive to find you red-faced and harried, they’re not going to relax until you do. Take a deep breath and try to exude calm energy.

·         Guests tend to turn up thirsty. Fill a big jug with iced water and lemon or lime slices and encourage people to help themselves.

·         Have some background music on to help create a bit of ambience and fill any initial lulls in conversations.

·         The meal certainly doesn’t need to be ready the moment your guests step through the door, but if there’s a nibble or two that can be passed around it will ward off hunger pangs and buy you a bit more time in the kitchen.

·         You absolutely don’t have to make every element of the brunch from scratch. Take inspiration from our ideas for ready-made extras and by all means pick up a store-bought dessert.

 

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COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million