Canada's conflict with UAE simmering for months


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OTTAWA // When it comes to understanding the escalating dispute between Canada and the UAE, one may need to look no further than this week's tour of the Gulf by the country's international trade minister, Peter Van Loan.
Jordan, Saudi Arabia, Kuwait and Qatar were all on his itinerary as he boosted Canadian trade.
However, when Mr Van Loan held a news conference by telephone with Canadian reporters to discuss his trip, he was bombarded with questions about one country conspicuously absent from his tour - the UAE.
For months, the UAE appears to have been a low priority for Prime Minister Stephen Harper's government. Now, Mr Harper's minority government is being asked tough questions at home about how it allowed relations with one of Canada's largest trading partners to founder. Insiders say the dispute that hit the headlines this week has been simmering for months.
The UAE is Canada's largest export market in the region with an estimated C$1.3 billion (Dh4.7bn) in purchases annually, while its exports total $195.4 million. But the UAE could not get Ottawa to budge on its bid for more landing rights in Canada for Emirates Airline and Etihad Airways. Some Canadians, like Ed Stelmach, the premier of the oil-rich western province of Alberta, would like to see direct flights between cities such as Calgary and Dubai. Air Canada worries the two UAE airlines simply want more Canadian landing rights to grab a greater share of the international travel market.
On Sunday, the rift came out in the open when the UAE ambassador to Canada publicly expressed his frustration at the failure of negotiations for more landing slots. The rift widened as Canadian officials said they would likely close Camp Mirage in the UAE after an agreement between the two nations lapsed and a flight carrying Canada's defence minister, Peter MacKay, was denied the right to land at the camp.
Yesterday the dispute escalated further with the revelation by a UAE official that his country actively lobbied against Canada's bid this week for a seat on the United Nations Security Council. The dispute with the UAE, coupled with Canada's failure to win a seat on the Security Council, left opposition critics charging that the government has mishandled Canada's foreign relations.
"The fact that the Harper government has completely bungled this relationship [with the UAE] is just another sign of just how off base they are," said Bob Rae, the critic on foreign affairs for the opposition Liberal Party.
Paul Dewar, the critic on foreign affairs for the New Democratic Party, said what was an irritant a year ago has escalated into a dispute because of the Harper government's attitude towards the UAE.
The UAE Ambassador to Canada, Mohammed Abdullah al Ghafli, has been trying for a year to get a meeting with the foreign affairs minister, Lawrence Cannon, to discuss issues including landing rights and visas, but so far has been unsuccessful.
"It is so obvious that they should be a priority, considering the trade, considering that they have been hosting us at Camp Mirage for almost a decade, you would think that we would bend over backwards to ensure that there was ongoing continual dialogue around any issue," Mr Dewar said. "If you don't, then things go off the rails rather quickly and that is what we have seen in the last couple of days."
Fen Hampson, the director of Carleton University's Norman Paterson School of International Affairs, said both sides bear some blame for the escalation of what is essentially a trade dispute and both sides stand to lose if it cannot be resolved.
While Canada has refused to make significant concessions on landing rights, the UAE's decision to link the trade dispute to Camp Mirage escalated it, he said.
The public opinion pollster, Nik Nanos, said the dispute is unlikely to affect the government's support.
But such events do prompt Canadians to ask questions, he said.
"When things go off the rails, people might not be public policy experts, but they wonder whether there is something wrong," Mr Nanos said.
foreign.desk@thenational.ae

Why are asylum seekers being housed in hotels?

The number of asylum applications in the UK has reached a new record high, driven by those illegally entering the country in small boats crossing the English Channel.

A total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

Asylum seekers and their families can be housed in temporary accommodation while their claim is assessed.

The Home Office provides the accommodation, meaning asylum seekers cannot choose where they live.

When there is not enough housing, the Home Office can move people to hotels or large sites like former military bases.

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Director: Kangana Ranaut, Krish Jagarlamudi

Producer: Zee Studios, Kamal Jain

Cast: Kangana Ranaut, Ankita Lokhande, Danny Denzongpa, Atul Kulkarni

Rating: 2.5/5

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Name: Dr Hassan Mohsen Elhais

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

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The National Archives, Abu Dhabi

Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.

Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en

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Liam Gallagher

(Warner Bros)

23-man shortlist for next six Hall of Fame inductees

Tony Adams, David Beckham, Dennis Bergkamp, Sol Campbell, Eric Cantona, Andrew Cole, Ashley Cole, Didier Drogba, Les Ferdinand, Rio Ferdinand, Robbie Fowler, Steven Gerrard, Roy Keane, Frank Lampard, Matt Le Tissier, Michael Owen, Peter Schmeichel, Paul Scholes, John Terry, Robin van Persie, Nemanja Vidic, Patrick Viera, Ian Wright.

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.”

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CAF Champions League semi-finals first-leg fixtures

Tuesday:

Primeiro Agosto (ANG) v Esperance (TUN) (8pm UAE)
Al Ahly (EGY) v Entente Setif (ALG) (11PM)

Second legs:

October 23

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Why it pays to compare

A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.

Route 1: bank transfer

The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.

Total cost: Dh567.25 - around 2.9 per cent of the total amount

Total received: €4,670.30 

Route 2: online platform

The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.

Total cost: Dh74.10, around 0.4 per cent of the transaction

Total received: €4,756

The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.

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Countries recognising Palestine

France, UK, Canada, Australia, Portugal, Belgium, Malta, Luxembourg, San Marino and Andorra

 

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Men's wheelchair 800m T34: 1. Walid Ktila (TUN) 1.44.79; 2. Mohammed Al Hammadi (UAE) 1.45.88; 3. Isaac Towers (GBR) 1.46.46.

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