Afghan Army troops patrol the streets near the scene of a suicide attack Monday that killed five people in Kandahar during a raid on UN and US charity offices.
Afghan Army troops patrol the streets near the scene of a suicide attack Monday that killed five people in Kandahar during a raid on UN and US charity offices.

Turkey to try to smooth relations between Afghanistan and Pakistan



ISTANBUL // Turkey will try to calm tensions between Afghanistan and Pakistan in two days of high-level talks in Istanbul that start today and form part of international efforts to map out a future for Afghanistan after the departure of Western troops in 2014.

Hopes for a success of the Istanbul talks are low, given the level of violence in the region and bitter accusations between Kabul and Islamabad 10 years after the start of the war in Afghanistan, officials said yesterday.

"The purpose is to stop the ongoing acrimony between the two sides," a Turkish official said, briefing reporters ahead of the talks and speaking on condition of anonymity.

Turkey wanted to facilitate frank discussions between Afghan and Pakistani officials and "stop them from talking to each other via the media", the Turkish official said. The official added that Turkey was hoping for some kind of "modest cooperation protocol" between Kabul and Islamabad to be signed in Istanbul.

The talks will include a summit of the presidents, key ministers and top military officers of Turkey, Afghanistan and Pakistan as well as a separate foreign minister conference of almost 30 countries. In a sign of the low level of expectations, officials said the mere fact that the meetings were taking place could already be counted as a success.

"The environment is not the most favourable environment," one Turkish official said in reference to the recent violence in Afghanistan. "But there is an overall consensus that something has to be done. Just because the situation is deteriorating, you can't just sit back. We are trying to stop and maybe reverse the course."

With the US-led Nato mission already locked into troop reductions that are scheduled to bring all foreign combat troops home by 2014, Pakistan, the chief diplomatic backer of the Taliban when the group was in power before 2001, is regularly accused by both Kabul and Washington of helping destabilise Afghanistan.

Rejecting the accusations, Asif Ali Zardari, the Pakistani president, told the Turkish newspaper Hurriyet in an interview published yesterday that his country had suffered more from terrorism than any other. "Nobody must doubt our determination and our intentions," Mr Zardari said.

Yesterday, suicide attackers in Kandahar blew up a truck bomb and raided UN and US charity offices, killing five Afghans. The bombing came two days after 17 people died in the deadliest attack yet in Kabul against the US-led Nato mission, including 10 Americans, and three days after a US-run base in Kandahar was targeted.

It is not clear whether the issue of negotiations with the Taliban and other insurgents in Afghanistan would come up in Istanbul. According to TheNew York Times, the US is trying to secure the help of the Pakistani intelligence service to organise reconciliation talks in Afghanistan. The newspaper reported overtures are taking place just a month after the US accused Pakistan's spy agency of secretly supporting militants.

News reports said the Afghan president, Hamid Karzai, will use his visit to Istanbul to announce a second wave of areas that will soon be handed over from Nato to Afghan control.

That will mark the second stage of a transition that began in July and is scheduled to see Afghans take responsibility for national security by 2014.

Hillary Clinton, the US secretary of state, is expected to promote her New Silk Road project linking the economies of Afghanistan and Pakistan with other Central and South Asian countries as part of a long-term plan to boost regional peace and stability.

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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Company profile

Name: Tharb

Started: December 2016

Founder: Eisa Alsubousi

Based: Abu Dhabi

Sector: Luxury leather goods

Initial investment: Dh150,000 from personal savings

 

Series information

Pakistan v Dubai

First Test, Dubai International Stadium

Sun Oct 6 to Thu Oct 11

Second Test, Zayed Stadium, Abu Dhabi

Tue Oct 16 to Sat Oct 20          

 Play starts at 10am each day

 

Teams

 Pakistan

1 Mohammed Hafeez, 2 Imam-ul-Haq, 3 Azhar Ali, 4 Asad Shafiq, 5 Haris Sohail, 6 Babar Azam, 7 Sarfraz Ahmed, 8 Bilal Asif, 9 Yasir Shah, 10, Mohammed Abbas, 11 Wahab Riaz or Mir Hamza

 Australia

1 Usman Khawaja, 2 Aaron Finch, 3 Shaun Marsh, 4 Mitchell Marsh, 5 Travis Head, 6 Marnus Labuschagne, 7 Tim Paine, 8 Mitchell Starc, 9 Peter Siddle, 10 Nathan Lyon, 11 Jon Holland

SPECS
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