The current issue of Foreign Policy magazine has a cover story comparing Barack Obama to Jimmy Carter. The implication is that Mr Obama, if he performs unwisely, may go the dismal way of his predecessor. While many applaud the US president as someone who has persuaded the world to like America again, the real question this mid-term election year is whether Americans like Mr Obama's America as it is; and on that, the jury is still out.
@body arnhem:Americans are, understandably, addicted to optimism. Ronald Reagan defeated Jimmy Carter in 1980 in large part because he persuaded the electorate that he could bring them a new morning, after years of economic decline and foreign policy calamities. The perception was at times harsh, but Mr Carter could never shake off the feeling that he was inept, and that the US looked inept in consequence.
Mr Obama is not inept, but the hopes that greeted the beginning of his term have been displaced by a jarring dose of realism. Economic recovery has been more sluggish than expected, with unemployment still in the double digits, despite growth in manufacturing. The president's health plan remains divisive, adding to a sense of doubt among voters, weighed unfairly against the incumbent, about the debt burden inherited from the financial recovery package. And even where a consensus exists, namely on limiting carbon-dioxide emissions, Mr Obama could do no better than emerge from the wreckage of Copenhagen looking like the villain.
As for his foreign policy, everyone agrees that Mr Obama is more popular than his predecessor, George W Bush, but in large part that is because most people misread the second Bush term. The current president had relatively little room to overhaul the Bush White House's alleged unilateralism, disregard for international law, and scorn for international institutions and compromise, because Mr Bush was himself a faithful multilateralist between 2005 and 2009, manoeuvred within the confines of international law, and compromised with most of the international partners he had so angered before.
There is another reason why Mr Obama has failed to convince. His approach to foreign affairs seems bound by no clear unifying theme. The president set ambitious goals before taking office, but otherwise doesn't stand for much - indeed often exhibits the intellectual's innate mistrust of clearly defined opinion. He is pulling out of Iraq, as promised, though this might play to the advantage of Iran, America's main rival in the Gulf. His effort to curb Iran's nuclear programme and facilitate Palestinian-Israeli peace have yet to show results. And Mr Obama has escalated US involvement in an Afghan war that even he appears unconvinced by.
The repercussions of Middle Eastern issues are also handicapping the president at home. For example, a recent poll suggested that two-thirds of Americans felt that Mr Obama's policies on terrorism either had no effect on their safety or made them feel less safe. The Democrats have traditionally been viewed as weak on national security, which is why Mr Obama reacted so virulently against the intelligence agencies after they allowed the failed Christmas bomber Umar Farouk Abdulmutallab to fly to the US unhindered.
To make matters worse, among those defending Mr Obama the most loudly are relics from the Carter years. They include the former national security adviser, Zbigniew Brzezinski, who argues that the president has "comprehensibly reconceptualised" US foreign policy and shown "a genuine sense of strategic direction".
If that is so, few have noticed. A pointed critique of the administration has come from the academic Fouad Ajami, an intellectual champion of the Bush years. His disapproval was directed more at the mood governing US foreign relations. Mr Obama presides over an administration isolating itself globally, Mr Ajami wrote, one imprisoned by its own declared limitations, without the ethos of a great power and offering no "overriding commitment to the defence of American primacy in the world".
Mr Ajami was not wrong. Powerful nations retain their power partly through self-confidence. Yet Mr Obama, despite his high rhetoric, has often drawn attention to American shortcomings. For example, the US is preparing only targeted sanctions against Iranian officials as punishment for Tehran's intransigence on its nuclear project. This is defensible in light of domestic Iranian tensions, but it is hardly a compelling deterrent given Washington's own description of what is at stake. It is, rather, a confirmation that America can do no more.
After declaring Palestinian-Israeli peace a Middle Eastern priority, the Obama administration is now quietly admitting just how difficult the task is. The US is putting together new proposals, but they will almost certainly go nowhere. The same can be said of American behaviour in Iraq. Americans welcome the withdrawal, but withdrawals by their very nature imply setbacks, not strength, reinforcing the sense that Mr Obama is better at sounding the retreat than seizing the initiative.
But there is Afghanistan, some might reply. Perhaps, but what kind of self-assurance did the US president inspire in his new strategy there? Even as he announced the deployment of more troops, he set a deadline for the start of their pullout. And Mr Obama sounded positively disconsolate when remarking: "In the wake of an economic crisis, too many of our neighbours and friends are out of work and struggle to pay the bills. Too many Americans are worried about the future facing our children. Meanwhile, competition within the global economy has grown more fierce. So we can't simply afford to ignore the price of these wars."
It is too early to write off Mr Obama as a new Jimmy Carter. However, he has not resolved a conundrum that preoccupied Machiavelli: whether it is best for a leader to be loved or feared. Mr Obama is more loved than Mr Bush, but he is not feared. That may come back to haunt him.
Michael Young is opinion editor of the Daily Star in Lebanon
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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5
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Norway
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Canada
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Singapore
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Australia
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Saudi Arabia
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South Korea
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GROUPS AND FIXTURES
Group A
UAE, Italy, Japan, Spain
Group B
Egypt, Iran, Mexico, Russia
Tuesday
4.15pm: Italy v Japan
5.30pm: Spain v UAE
6.45pm: Egypt v Russia
8pm: Iran v Mexico
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Racecard
7pm: Abu Dhabi - Conditions (PA) Dh 80,000 (Dirt) 1,600m
7.30pm: Dubai - Maiden (TB) Dh82,500 (D) 1,400m
8pm: Sharjah - Maiden (TB) Dh82,500 (D) 1,600m
8.30pm: Ajman - Handicap (TB) Dh82,500 (D) 2,200m
9pm: Umm Al Quwain - The Entisar - Listed (TB) Dh132,500 (D) 2,000m
9.30pm: Ras Al Khaimah - Rated Conditions (TB) Dh95,000 (D) 1,600m
10pm: Fujairah - Handicap (TB) Dh87,500 (D) 1,200m
UAE currency: the story behind the money in your pockets
Profile of MoneyFellows
Founder: Ahmed Wadi
Launched: 2016
Employees: 76
Financing stage: Series A ($4 million)
Investors: Partech, Sawari Ventures, 500 Startups, Dubai Angel Investors, Phoenician Fund
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Results
2pm: Serve U – Maiden (TB) Dh60,000 (Dirt) 1,400m; Winner: Violent Justice, Pat Dobbs (jockey), Doug Watson (trainer)
2.30pm: Al Shafar Investment – Conditions (TB) Dh100,000 (D) 1,400m; Winner: Desert Wisdom, Bernardo Pinheiro, Ahmed Al Shemaili
3pm: Commercial Bank of Dubai – Handicap (TB) Dh68,000 (D) 1,200m; Winner: Fawaareq, Sam Hitchcott, Doug Watson
3.30pm: Shadwell – Rated Conditions (TB) Dh100,000 (D) 1,600m; Winner: Down On Da Bayou, Xavier Ziani, Salem bin Ghadayer
4pm: Dubai Real Estate Centre – Maiden (TB) Dh60,000 (D) 1,600m; Winner: Rakeez, Patrick Cosgrave, Bhupat Seemar
4.30pm: Al Redha Insurance Brokers – Handicap (TB) Dh78,000 (D) 1,800m; Winner: Capla Crusader, Bernardo Pinheiro, Rashed Bouresly
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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