Abdullah backs US peace plan


James Reinl
  • English
  • Arabic

NEW YORK // Sheikh Abdullah bin Zayed, Minister of Foreign Affairs, has backed renewed efforts by the United States to broker peace in the Middle East and strive for the creation of a free Palestinian state within a year. In his address to the UN General Assembly, Sheikh Abdullah touched upon global concerns including security in Yemen, Somali pirates, Afghan reconciliation and Iran's controversial nuclear programme.

Sheikh Abdullah endorsed comments from the US president, Barack Obama, who last week urged world leaders to overcome cynicism and work towards a peace deal between Israelis and Palestinians within the next 12 months. "We hope that the independent Palestinian State, with its capital Al Quds Al Sharif, emerges next year," the UAE minister said. Sheikh Abdullah said the UAE welcomed Mr Obama's statement, and "the strong commitment towards the achievement of peace in the Middle East".

He added: "We also welcome his emphasis on the importance of direct negotiations to lead to final results within one year, and seeing Palestine take its seat among member states in the next session of the General Assembly." Just weeks after the Obama administration re-launched direct talks between Israeli and Palestinian officials on September 2, a familiar row over settlement construction in the West Bank threatens to derail negotiations.

The continuation of Israeli settlement construction, said Sheikh Abdullah, "clashes with the pursuit of peace". "Either choose to pursue peace or insist on continuing the settlements," he said. Sheikh Abdullah addressed other global challenges, including the security of Yemen, which faces not only water shortages and dwindling oil reserves, but threats from northern Shiite rebels, secessionists in the south and al Qa'eda militants.

"In this context, we call upon the international community to stand by the government of Yemen and extend to it the necessary assistance and support, in order to enhance its capacity to fulfil the requirements of fighting terrorism, restoring security and achieving stability and development," he said. Sheikh Abdullah said the UAE "condemns and deplores" acts of piracy committed off Somalia's coast and revealed plans for a meeting on the seaborne menace in the Emirates in March next year designed "to examine the strategies of combating piracy and maritime crimes".

On Afghanistan, the Emirati minister called for a "national reconciliation process" to help extend the government's control over all Afghan territory by the end of 2014. A meeting in Dubai next month will develop partnerships "between private and public sectors to invest and execute development projects" in the turbulent nation. Sheikh Abdullah called on Iran to allay fears about its uranium enrichment programme, which the US and other countries claim is for building nuclear weapons, an allegation Tehran denies. He also urged Tehran to return three Gulf islands - the Greater and Lesser Tunbs and Abu Musa - which Iran has occupied since 1971.

"We call upon the international community to urge Iran to respond to the peaceful and sincere initiatives of the UAE, which call for a just settlement of this issue, either through direct and serious negotiations between the two countries or by referring the issue to the International Court of Justice," he said. Sheikh Abdullah spoke on Tuesday afternoon, between delegates from Indonesia and Chad and towards the end of the week-long General Assembly in Manhattan, an annual meeting of leaders from the UN's 192 member nations.

This year's event, which ended yesterday, followed a three-day summit on progress towards the UN's poverty-reduction targets, the Millennium Development Goals.

The bio

Favourite book: Peter Rabbit. I used to read it to my three children and still read it myself. If I am feeling down it brings back good memories.

Best thing about your job: Getting to help people. My mum always told me never to pass up an opportunity to do a good deed.

Best part of life in the UAE: The weather. The constant sunshine is amazing and there is always something to do, you have so many options when it comes to how to spend your day.

Favourite holiday destination: Malaysia. I went there for my honeymoon and ended up volunteering to teach local children for a few hours each day. It is such a special place and I plan to retire there one day.

MATCH INFO

Who: UAE v USA
What: first T20 international
When: Friday, 2pm
Where: ICC Academy in Dubai

UAE currency: the story behind the money in your pockets
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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.”

UAE currency: the story behind the money in your pockets
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