WASHINGTON // With the killing of Osama bin Laden, the Obama administration is facing renewed questions about its Afghanistan policy. Americans are increasingly weary of the war, and some lawmakers, worried about the cost, are now looking at the removal of bin Laden as a chance to enact a speedier troop reduction.
Analysts, however, say a significant change of policy is unlikely, not least because while the US went into Afghanistan to pursue al Qa'eda and its leadership as well as remove the Taliban government that sheltered them, the aims of war have shifted over the years. The US wants to leave a strong Afghan government that will not serve as a haven for al Qa'eda or similar groups in the future.
But the counterinsurgency that the US administration launched in 2009 has yet to yield that result.
There are concerns in Washington over stability in the region generally. Pakistan is a nuclear power with enormous socio-economic and humanitarian problems and a home-grown insurgency of its own that seems to be gathering strength, in part because of the US presence in Afghanistan. On Thursday, 80 Pakistani paramilitary soldiers were killed in a suicide bombing at a base near the Afghan frontier.
"Our interests in the region are just that, they are regional," said Marvin Weinbaum, a scholar in residence with the Middle East Institute, a Washington-based think tank. "By laying it on Osama bin Laden and al Qa'eda, we made it seem as if there was a short cut out of there. But, having gotten in, now we have the [issue of the] stability of the region, the most dangerous, by far, in the world."
Nevertheless, nearly 60 per cent of Americans, according to a recent Gallup poll, think it is time for the US to end a war that has lasted nearly a decade. And they are joined in this by a cross-section of US legislators in Congress, many of whom are concerned at the cost of war, estimated at US$10 billion (Dh36.7bn) a month, at a time of tough economic circumstances at home.
Prominent among those questioning the current strategy is John Kerry, head of the Senate's Foreign Relations Committee. On Tuesday, Mr Kerry said during Senate hearing that bin Laden's death was a "potentially game-changing opportunity" that could bring about a political solution to increase stability in the region and "bring our troops home".
"Make no mistake, it is unsustainable to continue spending $10 billion a month on a massive military operation with no end in sight," Mr Kerry, a Democrat, said.
The ranking Republican on the Foreign Relations Committee, Richard Lugar, echoed that sentiment. "With al Qa'eda largely displaced from the country but franchised in other locations, Afghanistan does not carry a strategic value that justifies 100,000 US troops and a $100 billion per year cost, especially given current fiscal restraints," he said
Those are powerful sentiments in the US, where the flagging economic recovery continues to be the top concern for voters wearying of America's military deployments abroad.
The removal of bin Laden will augment those who argue that al Qa'eda is no longer a threat to the US and that there is no reason for the US to stay in Afghanistan.
"Those voices are obviously going to be strengthened now and they are already quite vocal," said Mr Weinbaum, who served as an Afghanistan and Pakistan analyst at the Bureau of Intelligence Research at the US State Department between 1999 and 2003.
The question for Barack Obama, the US president, now is whether he will make the "prudential choice" and stay the course, Mr Weinbaum said, or yield to public opinion and accelerate a process of withdrawal.
So far, the signs are that the administration will continue with its plan for a limited withdrawal of some troops this summer with a view to a more comprehensive withdrawal by 2014. The White House appears to have decided to limit the expansion of the Afghan army over the next 18 months, largely for reasons of costs, according to some US media reports, in a sign that any US withdrawal this year will be restricted.
The US military will be loath to abandon what modest security gains it has made in Afghanistan at a time when the counterinsurgency is just beginning to have an effect, said Nathan Hughes, director of military studies at Stratfor, a Texas-based global intelligence company.
"Pulling up stakes and leaving the country is a pretty risky strategy for the US ... There's a big question of just how big those [security] gains are or are not, but [the military] certainly doesn't want to take these hard-won gains and then pull up stakes and see them reversed."Moreover, said Mr Hughes, while the US-led invasion of Afghanistan and US military operations in Pakistan have contributed to the instability there, leaving Afghanistan would only exacerbate that tension.
"The long-term US interest in the region is a strong Pakistan that is capable of controlling its own territory, its own nuclear arsenal and, to be quite honest, serving a balance of power scenario with India."
A full withdrawal is not in the cards in any case, said Mr Weinbaum. Those arguing for a greater reduction in US troops are really arguing for a counter-terrorism approach instead of the present counterinsurgency. That could be a dangerous mistake, he warned.
"I think the [current] strategy is good but the timing is lousy. We waited too long. I don't know what we are going to accomplish [by 2014]. But I do know that if we fail, it's going to be quite disastrous."
okarmi@thenational.ae
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
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About Krews
Founder: Ahmed Al Qubaisi
Based: Abu Dhabi
Founded: January 2019
Number of employees: 10
Sector: Technology/Social media
Funding to date: Estimated $300,000 from Hub71 in-kind support
COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
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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.”
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
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Bantamweight 56.4kg
Abrorbek Madiminbekov v Mehdi El Jamari
Super heavyweight 94 kg
Adnan Mohammad v Mohammed Ajaraam
Lightweight 60kg
Zakaria Eljamari v Faridoon Alik Zai
Light heavyweight 81.4kg
Mahmood Amin v Taha Marrouni
Light welterweight 64.5kg
Siyovush Gulmamadov v Nouredine Samir
Light heavyweight 81.4kg
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