UAE and four others elected to UN Security Council


James Reinl
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The UAE, Albania, Brazil, Ghana and Gabon were on Friday elected to serve on the UN Security Council for two-year terms beginning next year in a vote in which all candidates ran unopposed.

Each candidate needed two-thirds of the votes in the 193-nation UN General Assembly’s secret ballot. The UAE received 179 votes. Albania got 175 votes, compared to 181 for Brazil, 185 for Ghana and 183 for Gabon.

Sheikh Abdullah bin Zayed, UAE Minister of Foreign Affairs and International Co-operation, said that the Emirates was ready to "shoulder its share of responsibility for the world's most pressing challenges".

"I hope that our history as a trusted partner and intermediary will enable us to make a lasting contribution during the two years we serve on the Security Council," Sheikh Abdullah said.

"We recognise the significant responsibility associated with membership on the Security Council and the extensive challenges the council faces, and we affirm that the UAE will strive to contribute to peace and security with great diligence and determination.”

The UAE, Albania and Brazil were the only candidates from their respective regions. Ghana and Gabon won the two seats allocated to Africa after the Democratic Republic of the Congo withdrew from the race.

The 2022-2023 term will be the UAE's second stint on the council after serving from 1986 to1987. Brazil has served on the council 10 times, and Gabon and Ghana three times each. Albania has never served on the council.

Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, said on Twitter that the country's diplomats would "pursue the same spirit of global engagement and collaboration that has guided the UAE since its founding".

Candidates for uncontested seats still seek high vote tallies on election day and spend months rallying friends and allies.

The 15-nation Security Council has 10 seats for temporary members but is dominated by its five permanent members – Russia, China, the US, Britain and France – which hold the power of veto.

Welcoming the vote, Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said it reflected the UAE's active diplomacy, international position and its development model.

The council meets regularly on threats to international peace and security and makes the ultimate decisions on resolutions imposing international sanctions, authorising use of military force and launching peacekeeping missions.

Its case file includes Syria, Yemen, Libya, Iraq, Lebanon, Ukraine, Ethiopia, North Korea and other hotspots, as well as the decades-old Israeli-Palestinian conflict and Iranian weapons programmes.

To be adopted, council resolutions need at least nine votes in favour and no vetoes from permanent members.

The council is often deadlocked on issues where the permanent members disagree, such as Syria, Myanmar and Ukraine.

The UAE’s journey back to the council has been years in the making.

Its candidacy was endorsed by the Arab League in 2012 and by the UN group of Asia-Pacific nations last year.

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In an interview ahead of the vote, the UAE's ambassador to the UN Lana Nusseibeh told The National the seat was a "once-in-a-generation opportunity" for the Emirates to play a bigger role in world affairs.

The UAE, one of a dwindling number of countries to have good relations with both the US and China, pitched itself as a “bridge-builder” in a world that is increasingly strained by great power competition.

The Emirates also pledged to push the council to do more to tackle terrorism and climate change and to ensure women play a bigger role in peacekeeping missions and are better protected in war zones.

The UAE has moved to new offices to host its bigger diplomatic mission to the UN in New York's midtown area.

More than half of the team will be women, Ms Nusseibeh said, including one of her deputies.

The UAE mission on Thursday announced that Mohamed Abushahab would serve as a deputy ambassador.

The vote came amid headline-grabbing initiatives by the UAE, which has in recent months established diplomatic ties with Israel and launched a Mars probe, is hosting the Expo world fair in Dubai in October and is bidding to host major climate talks in 2023.

“Last time we were on the council was 30 years ago, so it's really a once in a generation opportunity,” Ms Nusseibeh said ahead of the vote.

"It really fits in with what is happening at home in terms of our golden jubilee, putting up the first Arab interplanetary mission to Mars, opening our first nuclear reactor, putting ourselves forward to host Cop28 [climate change talks] and shouldering regional responsibility."

US State Department spokeswoman Jalina Porter congratulated the UAE and the four other nations, saying Washington anticipated "a strong and productive partnership for the incoming members on issues fundamental to the maintenance of international peace and security".

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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