Mixed response from Middle East



Osama bin Laden's death drew a mixed response in the Middle East where he was already seen as a spent force made irrelevant by the Arab Spring.

Osama bin Laden: Complete coverage of the killing of the world's most wanted terrorist.

Last Updated: May 3, 2010

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The pro-democracy uprisings sweeping the region are a determined rejection of his ideology of violence, which only appealed to a tiny minority, commentators said.

"Al Qa'eda was in eclipse. To be specific it was buried in January 2011 in Tahrir Square," said Jamal Khashoggi, a prominent Saudi journalist. The real story, he said, was that bin Laden had evaded capture for so long.

"It was a big failure of US intelligence," he told Arab News, an English-language Saudi daily.

Several governments in the region, including those of Saudi Arabia, Iraq, Turkey, Yemen, Israel and the Palestinian Authority, hailed bin Laden's demise. Hamas, however, condemned the killing of a "Muslim and Arab holy warrior", while insisting it had no ties with al Qa'eda.

Egypt's Muslim Brotherhood - scorned by al Qa'eda for its moderate approach - also branded bin Laden's killing "an assassination", saying it favoured "fair trials". It joined Iran in insisting that the al Qa'eda leader's death removed "any excuse" for the US and its allies to keep forces in the Middle East under the pretext of fighting terrorism.

But Libya's rebels said it would be a great "gift" if the US now killed the Libyan dictator, Muammar Qaddafi.

Jordan's Muslim Brotherhood said it did not endorse al Qa'eda's tactics but predicted another leader could emerge unless the international community changed its attitude toward Islam, the Palestinian issue and corruption in the Middle East.

Jihadist forums were disconsolate.

"Oh God, please make this news not true. God curse you Obama," said one message on an Arabic internet chat site. "Oh Americans, it is still legal for us to cut your necks." An internet outlet for official messages from al Qa'eda pledged that its "holy war" would continue.

In Saudi Arabia, where bin Laden was born but stripped of his citizenship in 1994, an official statement said the Saudi people had in particular been targeted by "this terrorist organisation". Riyadh hoped his death would boost international "efforts against terrorism".

Bin Laden was a sworn enemy of the US-backed Saudi monarchy. Popular sympathy for al Qa'eda in the kingdom largely evaporated after a series of indiscriminate terrorist attacks between 2003 and 2006 that killed many Muslims as well as Westerners.

Journalists in Riyadh said Saudis also wanted to forget about bin Laden because he had tarnished Islam.

"Bin Laden has been off the radar for a long time. I was eavesdropping on conversations in Starbucks this morning and his name was hardly mentioned.

"Two men were talking about German football instead," a longtime Saudi journalist said in a telephone interview.

Lebanon's outgoing premier, Saad Hariri, said the al Qa'eda leader's tactics had backfired.

"The damage he (bin Laden) has done to Islam's image and Arab causes is not less than the damage done by enemies of Muslims and Arabs worldwide," Mr Hariri said.

Iran demanded the withdrawal of US soldiers from Afghanistan and Iraq.

The foreign ministry spokesman, Rahim Mehmanparast, said: "The US and their allies have no more excuse to deploy forces in the Middle East under the pretext of fighting terrorism."

Tehran has long viewed al Qa'eda as a threat, fearing its extremist brand of Sunni radicalism, which is hostile to the Shiite faith. In 1998, Iran was on the brink of war with Afghanistan, then controlled by the Taliban, which was sheltering al Qa'eda.

Many of bin Laden's closest relatives have been under house arrest in Tehran since fleeing Afghanistan after the September 11 attacks on the US.

Israel's prime minister, Benjamin Netanyahu, congratulated President Obama for bin Laden's "elimination".

It was a "victory for justice, liberty and the common values of democratic nations which fought side by side against terrorism". The Western-backed Palestinian Authority said bin Laden's death was good for the cause of peace".

Turkey's president, Abdullah Gul, welcomed bin Laden's death "with great satisfaction" and said the "way in which he was eliminated should serve as an example to everyone".

Twin al Qa'eda attacks in Turkey eight years ago killed 63 people, including the British consul.

The 57-member Organisation of the Islamic Conference stressed that terrorism was against the teachings of Islam.

It released a statement saying: "The OIC believes that the activities against terrorism should address the real causes of terrorism rather than dealing with its external manifestations."

* With additional reporting by Hugh Naylor in Jerusalem, Suha Philip Ma'ayeh in Amman and Zoi Constantine in Beirut

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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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Ep1: A recovery like no other- the unevenness of the economic recovery 

Ep2: PCR and jobs - the future of work - new trends and challenges 

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Ep4: Inflation- services and goods - debt risks 

Ep5: Travel and tourism