New York // The US defence secretary Chuck Hagel submitted his resignation on Monday amid reports he was pressured to step down as Barack Obama’s national security team struggled to form a coherent strategy to fight ISIL.
The move, which could mark the beginning of a deeper shake-up of Mr Obama’s national security advisers, was announced by the US president as he stood with Mr Hagel and the US vice president at the White House, showering Mr Hagel with accolades.
Mr Obama said the outgoing defence secretary was crucial to ushering the US military “through a significant period of transition” and said he appreciated that Mr Hagel has “always given it to me straight” as an adviser.
The 68-year-old Republican and military veteran – the first veteran to hold the position – served for less than two years in Mr Obama’s cabinet, where he was reported to have an uneasy relationship with the close circle of White House foreign policy advisers and clashed with them over the strategy against ISIL.
Mr Hagel survived a bruising confirmation process during which he gave sometimes confusing answers that drew questions as to his competence, a pattern that continued during his time in office. He occasionally contradicted and angered the White House, in particular on its policies in the fight against ISIL.
Mr Hagel never quite recovered from attacks during that process by fellow Republicans for his opposition to sanctions against Iran, his criticism of the 2007 US troop surge in Iraq and comments he made on the power of what he called the “Jewish lobby” in Washington.
US defence officials were quoted in US media as insisting the decision was made by both Mr Hagel and Mr Obama after two weeks of discussions, and that he will stay in office until a replacement is nominated and confirmed by congress.
Mr Hagel, an opponent of the Iraq war, was brought on to steer the defence department through its drawdown of US forces from Afghanistan and the deep cuts to defence spending after a decade of ballooning budgets.
But the US has been drawn back into a new conflict in the Middle East against a virulent extremist group, and the defence officials were reported as saying that Mr Hagel lacked the particular skills needed in a defence secretary for a new kind of war.
The administration has been criticised for its handling of the fight against ISIL and having an incoherent strategy, particularly with regards to Syria. Mr Hagel himself has clashed with the White House on the issue. Mr Obama could be looking for a replacement better able to present his positions to the public.
Mr Hagel was reportedly frustrated with the White House’s tight control over public statements on the ISIL fight, which aides said he thought confused allies and made it even more difficult for him to explain his thoughts publicly.
The defence secretary was dispatched by Mr Obama on a number of occasions to the Arabian Gulf to reassure leaders about Washington’s commitment to the region as the White House indicated it was hoping to focus less on the Middle East and “pivot” to East Asia.
The interim nuclear deal with Iran exacerbated these fears, but the renewed US military role in the region, in coalition with traditional allies, against ISIL has added a measure of reassurance, though concerns remain in the Gulf about Mr Obama’s strategy to defeat ISIL.
On Friday, Mr Hagel met separately in Washington with counterparts from Qatar and Saudi Arabia to discuss the coalition against ISIL.
tkhan@thenational.ae
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
The specs
Engine: 3-litre twin-turbo V6
Power: 400hp
Torque: 475Nm
Transmission: 9-speed automatic
Price: From Dh215,900
On sale: Now
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
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.”
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
MATCH INFO
Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)
Russia 0
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
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%3Cp%3ECelebrated%20on%20October%2016%2C%20to%20coincide%20with%20the%20founding%20date%20of%20the%20United%20Nations%20Food%20and%20Agriculture%20Organisation%2C%20World%20Food%20Day%20aims%20to%20tackle%20issues%20such%20as%20hunger%2C%20food%20security%2C%20food%20waste%20and%20the%20environmental%20impact%20of%20food%20production.%20%0D%3C%2Fp%3E%0A
The specs
Engine: 0.8-litre four cylinder
Power: 70bhp
Torque: 66Nm
Transmission: four-speed manual
Price: $1,075 new in 1967, now valued at $40,000
On sale: Models from 1966 to 1970
The Perfect Couple
Starring: Nicole Kidman, Liev Schreiber, Jack Reynor
Creator: Jenna Lamia
Rating: 3/5
