Aref Ali Nayed, Libyan ambassador to the UAE, speaks during a panel discussion on internal shifts in Arab Spring countries, at the Abu Dhabi Strategic Debate at Emirates Palace hotel last week. Christopher Pike / The National
Aref Ali Nayed, Libyan ambassador to the UAE, speaks during a panel discussion on internal shifts in Arab Spring countries, at the Abu Dhabi Strategic Debate at Emirates Palace hotel last week. Christopher Pike / The National
Aref Ali Nayed, Libyan ambassador to the UAE, speaks during a panel discussion on internal shifts in Arab Spring countries, at the Abu Dhabi Strategic Debate at Emirates Palace hotel last week. Christopher Pike / The National
Aref Ali Nayed, Libyan ambassador to the UAE, speaks during a panel discussion on internal shifts in Arab Spring countries, at the Abu Dhabi Strategic Debate at Emirates Palace hotel last week. Christ

Middle East ‘to drive global politics’


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  • Arabic

ABU DHABI // Conflicts in the Middle East will be a driver of international politics, experts at the Abu Dhabi Strategic Debate said this week.

But they said that the region must set up a power-sharing arrangement to avoid creating more turmoil.

“Islamophobia in Europe is ignited because of what is happening in this region,” said Dr Mohammed bin Huwaidin, chairman of political science at UAE University. “It could spread across the world, but the UAE saw a power vacuum developing therefore it stood against such challenges and with others took the responsibility to fill that power gap.”

Regional conflicts, from Syria and Libya to Yemen, Iraq and Egypt, have plagued the region in recent years, causing millions of refugees to flee. These wars were drivers of regional and international politics, he said.

“We have four civil wars and a potential one in Egypt, Turkey, maybe Jordan, Algeria and Tunisia,” said Kenneth Pollack, senior fellow for foreign policy at the US-based Centre for Middle East Policy.

“There are a lot of fragile states and these are huge problems because they spread and are engines of instability. It makes it very clear that every country that is intervening, whether the US, Russia, Egypt or Saudi Arabia, is doing the wrong thing because they are making the civil wars worse and the problem with civil wars is they do not stay contained.”

Regional trends show that Arab transitions are far from over. “They are an unfinished business,” said Nicola De Santis, head of political affairs and security policy in Middle East and North Africa at Nato.

“North Africa is now a larger potential for conflict spillover to Europe and the US because what happened in the Arab public awakening is that people demanded better conditions of living. Drivers of change go back 30 years and these regimes were not able to provide for the people, so we could have new waves of revolutions in which [the violence and conflict in] Syria and Iraq would mean nothing in comparison to the implosion of Egypt for instance.”

The US’s rapprochement with Iran caused concern in the Arab world, especially in the Gulf. “This region has trusted the US too much and they have not got what they wanted from them,” Dr bin Huwaidin said. “The Americans make the mess and we are cleaning up the mess now. They need to stand by us and with us but we do not see that.”

Some said there was a positive future to be had in the Middle East. “One scenario is turning the corner,” said Frederick Kempe, president and chief executive of the Atlantic Council in the US. “The UAE is a good model but it has not yet been able to expand that model to its neighbours.”

Ultimately, a power-sharing arrangement will need to be set up.

“Saudi Arabia, Iraq, Egypt and Iran need to go beyond the zero-sum game arrangements, the pursuit of superiority and the tension and rivalry they have now,” said Dr bin Huwaidin. “If not, then tensions will continue and we will reach a tipping point of security dilemma and collide in military conflict.”

cmalek@thenational.ae

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How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
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*Annual tuition fees covering the 2024/2025 academic year

Profile of MoneyFellows

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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.”

Day 1 results:

Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)

Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)

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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