Nato troops will not be leaving Afghanistan in the near future as the risk of terrorism is still extremely high, the organisation's Secretary General said on Tuesday, as the US is expected to cut its troop number in half by January.
Afghanistan currently hosts an estimated 5,000 US troops, but President Donald Trump is poised to cut numbers by January 15, when Joe Biden takes office, a US defence official said.
US Central Command has received an informal warning order, according to the official.
The drawdown isn't unexpected. Nineteen years after overthrowing the Taliban, the US signed an agreement with the Taliban earlier this year in an effort to end the war in Afghanistan, which included a reduction in troop numbers.
However, this hasty withdrawal has left US allies in the North Atlantic Treaty Organisation in a difficult position. Nato supported the 2001 invasion, and has 12,000 multinational troops stationed in Afghanistan.
Nato Secretary General Jens Stoltenberg said withdrawing troops from Afghanistan prematurely risks a resurgence of international terrorism and reaffirmed that the alliance of 30 nation remains committed to Afghanistan.
"We now face a difficult decision," Mr Stoltenberg said in a statement shared with The National, adding that no Nato member wants to stay longer than required.
“But at the same time, the price for leaving too soon or in an unco-ordinated way could be very high,” he said, pointing out that several hundred thousand troops from Europe and beyond stood shoulder-to-shoulder with American troops in Afghanistan, and “over one thousand of them have paid the ultimate price”.
“Afghanistan risks becoming once again a platform for international terrorists to plan and organise attacks on our homelands. And ISIS could rebuild in Afghanistan the terror caliphate it lost in Syria and Iraq,” he said.
As a consequence, Nato troops will remain in Afghanistan, he said.
“Even with further US reductions, Nato will continue its mission to train, advise and assist the Afghan security forces,” he said, adding the organisation was committed to funding Afghan forces through to 2024.
Although reassuring, Nato support may not be sufficient following US withdrawal, Dr Jack Watling, research fellow at Royal United Services Institute for Defence and Security Studies, explained.
“The Nato mission is largely on bases delivering training to Afghan forces, and not fighting in combat alongside Afghans.
“So if the US significantly withdraws troops, then Afghans will lose the US forces fighting alongside and a lot of the air support, making them less combat effective in their engagement,” he said. But, Nato presence will prevent Taliban from penetrating certain territories, and perhaps might motivate some of the units to step up, he added.
Nato may eventually consider a slow rolling back of their troops if they feel Afghan forces are able to weather the storm, Mr Watling said.
“Nato doesn’t want to abandon their partners, nor do they want to abandon all the work they’ve done in terms of developing training facilities in the country,” he said.
In Kabul, Acting Defence Minister Asadullah Khalid told the Afghan parliament on Tuesday there was no concern about the complete withdrawal of foreign troops.
“I don’t see any clear indication that the US or Nato forces will fully withdraw from the country,” Mr Khalid said. “Some other countries in Nato are still considering whether to remain or leave,” he said, noting Afghan forces were in charge of 96 per cent of operations across the country and only 4 per cent of those need foreign air support.
Mr Stoltenberg has also talked with the new acting US Defence Secretary Christopher Möller and conveyed their concerns and reaffirmed commitments to Afghanistan: “We went into Afghanistan together. And when the time is right, we should leave together in a co-ordinated and orderly way. I count on all Nato allies to live up to this commitment, for our own security.”
Trump visits Afghanistan in November 2019
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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Name: Tratok Portal
Founded: 2017
Based: UAE
Sector: Travel & tourism
Size: 36 employees
Funding: Privately funded
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The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
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The years Ramadan fell in May
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
The specs
Engine: 3.8-litre, twin-turbo V8
Transmission: eight-speed automatic
Power: 582bhp
Torque: 730Nm
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Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
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