Beijing hosts Assad regime adviser amid criticism of its position



BEIJING // A key adviser to the Syrian president, Bashar Al Assad, arrived yesterday for talks with the Chinese foreign minister, Yang Jiechi, and other top officials, while Beijing said it would also host opposition figures soon.

Bouthaina Shaaban's trip to Beijing comes as China continues to resist pressure to join those nations calling for the end of the Assad regime.

Along with Russia, it has vetoed three UN Security Council resolutions aimed at stemming the spiralling violence in the country and promoting a political transition.

"China has always actively promoted its work between the Syrian government and the opposition in a balanced way to achieve a political solution to the Syria issue," the Chinese foreign ministry spokesman, Qin Gang, said in an earlier statement. Li Mingjiang, an assistant professor at the S Rajaratnam school of international studies in Singapore, said yesterday that Mr Al Assad had sent his envoy "to persuade Beijing to provide strong support for his regime". However, he said Beijing's invitation to opposition figures at this point - a proposal that follows previous meetings between Chinese officials and opposition leaders - showed Beijing was "more willing openly to pursue a balanced approach".

"It's likely the Assad regime may seek Chinese mediation," Mr Li said. "They know China has been in contact with the opposition, and this contact is becoming stronger," he added. Tomorrow, the role of the United Nations mission to Syria is on the agenda of the UN Security Council. The meeting comes as the UN-Arab League special envoy Kofi Annan's mandate to seek a peaceful solution to the crisis ends on August 31.

Mr Annan resigned on August 2 following the failure of his six-point plan to end the violence believed to have caused more than 20,000 deaths in Syria.

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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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