The US secretary of state Hillary Clinton certainly hoped to do better than her boss on her trip to Saudi Arabia. The US president Barack Obama landed in Riyadh in June of last year hoping that King Abdullah of Saudi Arabia would extend diplomatic gestures to Israel to buttress the renewed US push for peace in the Levant. The Saudi monarch was unimpressed and unconvinced, and Mr Obama left empty-handed.
Coming on the heels of that effort and growing Arab disappointment with the Obama administration, Mrs Clinton's visit was cast differently. Though she was careful to reaffirm the US determination to reach peace and praise King Abdallah for putting forward the Arab Peace Initiative, her agenda was essentially Iran-centric.
Mrs Clinton came to the Gulf to brief, and with the hope to enrol, America's Arab allies in what the US and its UN Security Council partners plan to do now that Iran has turned down even a reasonable proposal to build mutual confidence. Iran instead declared itself a nuclear state - a symbolic if dubious claim. Prospects for domestic change in Tehran have dimmed after the poor showing of the Green Movement last week.
Mrs Clinton sought two things. First, Gulf leverage to convince a reluctant China to come on board with sanctions at the UN. It is doubtful she made much headway here since the Gulf states see themselves as marginal players in the Chinese strategic thinking. Second, Mrs Clinton sought assurances that Gulf states will abide by a sanctions regime designed to complicate the operations of Iranian businesses linked to the Revolutionary Guard, which oversees Iran's nuclear programme. Gulf leaders must have certainly reiterated that they would implement whatever demand comes out of the UN Security Council, though they will remain silent on that matter until a resolution has been passed.
Mrs Clinton denied that the US was readying itself for war, emphasising that the much-publicised deployment of missile defences to the Gulf last week was a defensive measure. In reality, several Gulf states had demanded that these capabilities be deployed for fear that an accident or a miscalculation could escalate into an unwanted war.
In comments that made headlines, Mrs Clinton warned of the growing hold of the Revolutionary Guard over Iranian politics. "We see that the government of Iran, the supreme leader, the president, the Parliament [are] being supplanted and that Iran is moving toward a military dictatorship," she said.
The Gulf states no doubt share that assessment. In truth, they think that Washington, in awe with the Green Movement, took too long to acknowledge that Iran's semblance of democracy blurred a more determined if insidious attempt by a neoconservative clique in Tehran to seize power. They blame this on a mix of political naiveties and misplaced attraction for Tehran.
This is why Gulf leaders have been sceptical of Mr Obama's overtures to Iran, though there is certainly truth to the claim that his outreach, from the Nowrooz message to his private letters to the Supreme Leader Ali Khamenei, has helped clarify the stakes. The effort has shifted the blame from Washington to Tehran and made the fissures within Iranian society and politics more apparent. But until this delivers tangible results at the UN, it will remain a quixotic effort.
Ms Clinton may not have intended it this way, but there is an opportunity here. The less domestic and regional appeal that the Iranian regime has, the easier it becomes to enrol the Arab states in a containment strategy. Iran's stock in the Arab world has plummeted, though not irremediably. There is growing distrust of its nuclear ambitions and a sense that its domestic unrest has exposed fundamental truths about the state of Iran. Arab participation certainly does not guarantee the success of such a strategy, but the political cost of pressure has suddenly become more bearable with an Iran troubled at home and struggling to sustain its claim of having perfected Islamic democracy abroad.
The problem, of course, is that calling Iran an authoritarian state will not sway either Russia or China, both of which are just that. It will also not sway countries that will not let moral and political considerations determine their foreign policy interests. And without the legitimacy that comes with the UN stamp on sanctions, the US will not be able to secure unconditional adherence from the Gulf states.
Indeed, scepticism about the effectiveness of sanctions runs deep. Among the comments that stood out during Mrs Clinton's stay in Saudi Arabia were those of the Saudi foreign minister, Prince Saud al Faisal. "Sanctions are a long-term solution," he said. "But we see the issue in the shorter term, maybe because we are closer to the threat. So we need an immediate resolution rather than a gradual resolution."
Such remarks are meant to convey the Arab sense of urgency and fear that talk of containment means that prevention is no longer in the cards. They also clearly show how little policy thinking the Gulf states can contribute: if war is unthinkable, engagement doomed to fail, a grand bargain is fundamentally a betrayal, and sanctions utterly inadequate, then what?
But Prince Saud has a point. Sanctions require time, unanimity and compliance to have a substantive impact, and containment in itself is not a long-term solution. It is difficult to maintain over time: political and economic interests constantly evolve and sanctions fatigue often kicks in, as happened with Saddam Hussein's Iraq. Containment is imperfect: the violators are many because demand for banned goods persists, making the premium to break sanctions high. Containment is difficult to sustain: US attention may be focused on Iran now, but what about in five or 10 years?
And as containment erodes, so will the credibility of its architect, the US. No one wants to see a repeat of Iraq, where that combination inexorably led to conflict. There is another danger that Prince Saud alluded too: a regional nuclear arms race, a risk that Mrs Clinton once again tried to dispel by stressing the efficacy of the US security umbrella. Mrs Clinton helped put these matters in clear focus. But so far, there is no evidence that she could do much else.
ehokayem@thenational.ae
The%20specs
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Essentials
The flights
Emirates and Etihad fly direct from the UAE to Geneva from Dh2,845 return, including taxes. The flight takes 6 hours.
The package
Clinique La Prairie offers a variety of programmes. A six-night Master Detox costs from 14,900 Swiss francs (Dh57,655), including all food, accommodation and a set schedule of medical consultations and spa treatments.
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.”
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
England World Cup squad
Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood
The%20specs
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Tax authority targets shisha levy evasion
The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.
Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".
The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.
He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.
"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.
As with cigarettes, shisha was hit with a 100 per cent tax in October 2017, though manufacturers and cafes absorbed some of the costs to prevent prices doubling.
Five ways to get fit like Craig David (we tried for seven but ran out of time)
Start the week as you mean to go on. So get your training on strong on a Monday.
Train hard, but don’t take it all so seriously that it gets to the point where you’re not having fun and enjoying your friends and your family and going out for nice meals and doing that stuff.
Think about what you’re training or eating a certain way for — don’t, for example, get a six-pack to impress somebody else or lose weight to conform to society’s norms. It’s all nonsense.
Get your priorities right.
And last but not least, you should always, always chill on Sundays.
White hydrogen: Naturally occurring hydrogen
Chromite: Hard, metallic mineral containing iron oxide and chromium oxide
Ultramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica content
Ophiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on land
Olivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour
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
The specs: Fenyr SuperSport
Price, base: Dh5.1 million
Engine: 3.8-litre twin-turbo flat-six
Transmission: Seven-speed automatic
Power: 800hp @ 7,100pm
Torque: 980Nm @ 4,000rpm
Fuel economy, combined: 13.5L / 100km
Wonka
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Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
What is the Supreme Petroleum Council?
The Abu Dhabi Supreme Petroleum Council was established in 1988 and is the highest governing body in Abu Dhabi’s oil and gas industry. The council formulates, oversees and executes the emirate’s petroleum-related policies. It also approves the allocation of capital spending across state-owned Adnoc’s upstream, downstream and midstream operations and functions as the company’s board of directors. The SPC’s mandate is also required for auctioning oil and gas concessions in Abu Dhabi and for awarding blocks to international oil companies. The council is chaired by Sheikh Khalifa, the President and Ruler of Abu Dhabi while Sheikh Mohamed bin Zayed, Abu Dhabi’s Crown Prince and Deputy Supreme Commander of the Armed Forces, is the vice chairman.
Aayan%E2%80%99s%20records
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The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Types of policy
Term life insurance: this is the cheapest and most-popular form of life cover. You pay a regular monthly premium for a pre-agreed period, typically anything between five and 25 years, or possibly longer. If you die within that time, the policy will pay a cash lump sum, which is typically tax-free even outside the UAE. If you die after the policy ends, you do not get anything in return. There is no cash-in value at any time. Once you stop paying premiums, cover stops.
Whole-of-life insurance: as its name suggests, this type of life cover is designed to run for the rest of your life. You pay regular monthly premiums and in return, get a guaranteed cash lump sum whenever you die. As a result, premiums are typically much higher than one term life insurance, although they do not usually increase with age. In some cases, you have to keep up premiums for as long as you live, although there may be a cut-off period, say, at age 80 but it can go as high as 95. There are penalties if you don’t last the course and you may get a lot less than you paid in.
Critical illness cover: this pays a cash lump sum if you suffer from a serious illness such as cancer, heart disease or stroke. Some policies cover as many as 50 different illnesses, although cancer triggers by far the most claims. The payout is designed to cover major financial responsibilities such as a mortgage or children’s education fees if you fall ill and are unable to work. It is cost effective to combine it with life insurance, with the policy paying out once if you either die or suffer a serious illness.
Income protection: this pays a replacement income if you fall ill and are unable to continue working. On the best policies, this will continue either until you recover, or reach retirement age. Unlike critical illness cover, policies will typically pay out for stress and musculoskeletal problems such as back trouble.
AWARDS
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GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
The biog:
Languages: Arabic, Farsi, Hindi, basic Russian
Favourite food: Pizza
Best food on the road: rice
Favourite colour: silver
Favourite bike: Gold Wing, Honda
Favourite biking destination: Canada
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.