Afghan national security adviser Hanif Atmar, right, and US ambassador to Afghanistan James Cunningham, second left, signed a security agreement allowing about 10,000 US troops to stay in Afghanistan next year. Shah Marai/AFP Photo
Afghan national security adviser Hanif Atmar, right, and US ambassador to Afghanistan James Cunningham, second left, signed a security agreement allowing about 10,000 US troops to stay in Afghanistan next year. Shah Marai/AFP Photo
Afghan national security adviser Hanif Atmar, right, and US ambassador to Afghanistan James Cunningham, second left, signed a security agreement allowing about 10,000 US troops to stay in Afghanistan next year. Shah Marai/AFP Photo
Afghan national security adviser Hanif Atmar, right, and US ambassador to Afghanistan James Cunningham, second left, signed a security agreement allowing about 10,000 US troops to stay in Afghanistan

Afghanistan and US sign security pact


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KABUL // Afghanistan and the United States on Tuesday signed a deal to allow about 10,000 US troops to stay in the country next year, as new president Ashraf Ghani took a major step towards mending frayed ties with Washington.

Hamid Karzai, who stepped down as president on Monday, had refused to sign the deal – a disagreement that symbolised the breakdown of Afghan-US relations after the optimism of 2001 when the Taliban were removed from power.

US president Barack Obama welcomed the signing of the security agreement.

“Today we mark an historic day in the US-Afghan partnership that will help advance our shared interests and the long-term security of Afghanistan,” he said.

Afghan national security adviser Hanif Atmar and US ambassador James Cunningham inked the security pact at a ceremony at the presidential palace in Kabul as Mr Ghani looked on.

“We have signed an agreement which is for the good of our people, the stability of the region and the world,” Mr Ghani said, adding that it would allow continued US funding for the 350,000-strong Afghan security forces.

“Threats exist to our joint interests, and this gives us a common goal,” Mr Ghani said after fulfilling his campaign vow to have the deal signed on his first full day in office.

Many long-term international aid pledges were dependent on the agreement being signed to strengthen security.

Taliban insurgents still pose a major risk despite years of effort by Nato's US-led International Security Assistance Force (Isaf).

Nato combat operations will finish at the end of this year, and the Taliban have launched a series of recent offensives that have severely tested Afghan soldiers and police.

Nato’s follow-up mission, which will take over on January 1, will be made up of 9,800 US troops and about 3,000 soldiers from Germany, Italy and other member nations.

The new mission – named Resolute Support – will focus on training and assisting Afghan forces as they take on the Taliban, in parallel with US counterterrorism operations.

“Afghan security forces have demonstrated their resolve and capability,” Mr Cunningham said.

“This agreement will enable the United States to help [them] to build on this progress after the Isaf mission comes to a close.”

Mr Cunningham said the deal would also open the way for further support in health, education and women’s issues in Afghanistan, which faces a growing economic crisis.

Negotiations over the pact saw Mr Karzai, who came to power in 2001, at his most unpredictable as he added new demands and shifted positions, infuriating the US.

He eventually refused to sign the agreement last year despite a “loya jirga” grand assembly that he had convened voting for him to do so. There was also widespread public support for US troops to stay.

On the election campaign trail, both Mr Ghani and his poll rival Abdullah Abdullah vowed to reverse Mr Karzai’s decision.

Without a deal, Washington had threatened to pull all US forces out by the end of the year, but it chose to wait through a long election deadlock until Afghanistan finally got a new president on Monday.

After months of disputes over fraud, Mr Ghani agreed to a power-sharing deal with Mr Abdullah, who has taken up the new role of chief executive.

Nato support next year is seen as essential for national stability – though the limited size of the mission and the fact that it will be scaled back during 2015 will restrict its capabilities.

US president Barack Obama has previously announced that the US force will be halved by the end of next year, before being reduced to a normal embassy protection presence by the end of 2016.

The failure to sign a similar deal with Iraq in 2011 led to a complete withdrawal of US troops from the country, which is now engulfed in Islamist violence.

The Taliban described the signing of the agreement as “embarrassing and regrettable”.

“We tell America and its slaves that we will continue our holy jihad until our country is liberated from the claws of savage Americans,” the group said in an emailed statement.

The security threat in Kabul was underlined on Monday by a suicide attack outside the airport’s main entrance that killed four members of the Afghan security forces and three civilians.

The inauguration marked the country’s first democratic transfer of power, although the UN said the election was beset by “significant fraud”.

* Agence France-Press

RESULTS

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Your rights as an employee

The government has taken an increasingly tough line against companies that fail to pay employees on time. Three years ago, the Cabinet passed a decree allowing the government to halt the granting of work permits to companies with wage backlogs.

The new measures passed by the Cabinet in 2016 were an update to the Wage Protection System, which is in place to track whether a company pays its employees on time or not.

If wages are 10 days late, the new measures kick in and the company is alerted it is in breach of labour rules. If wages remain unpaid for a total of 16 days, the authorities can cancel work permits, effectively shutting off operations. Fines of up to Dh5,000 per unpaid employee follow after 60 days.

Despite those measures, late payments remain an issue, particularly in the construction sector. Smaller contractors, such as electrical, plumbing and fit-out businesses, often blame the bigger companies that hire them for wages being late.

The authorities have urged employees to report their companies at the labour ministry or Tawafuq service centres — there are 15 in Abu Dhabi.

TOUCH RULES

Touch is derived from rugby league. Teams consist of up to 14 players with a maximum of six on the field at any time.

Teams can make as many substitutions as they want during the 40 minute matches.

Similar to rugby league, the attacking team has six attempts - or touches - before possession changes over.

A touch is any contact between the player with the ball and a defender, and must be with minimum force.

After a touch the player performs a “roll-ball” - similar to the play-the-ball in league - stepping over or rolling the ball between the feet.

At the roll-ball, the defenders have to retreat a minimum of five metres.

A touchdown is scored when an attacking player places the ball on or over the score-line.

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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.”

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