BEIRUT // When Turkey shot down a Russian military jet last November, president Vladimir Putin said Ankara had stabbed Moscow in the back and the Kremlin accused the Turkish government of having direct ties to ISIL.
But such hostility seemed to be in the past on Tuesday when Turkish president Recep Tayyip Erdogan met with Mr Putin for the first time since the incident.
“We lived through a very complicated moment in the relations between our states and we very much want, and I feel our Turkish friends want, to overcome the difficulties,” Mr Putin said after the meeting.
“Turkey-Russia ties have entered into a very different and positive phase,” said Mr Erdogan. He called the meeting in the Russian city of St Petersburg a “milestone”.
Turkey vehemently defended shooting down the Sukhoi Su-24 at the time, saying the jet had flown into Turkish airspace, but the incident has been recast in recent weeks and months.
In June Mr Erdogan apologised for the action and on Tuesday suggested it was shot down while in Syrian, not Turkish, airspace.
“The culprits in what happened in Syrian territory have been detained and brought to justice already,” he said, referring to the pilots who shot down the jet.
The pilots involved were recently arrested as part of a government purge of the military and other instutitons following last month’s coup attempt. And the ordeal is now being portrayed by the Turkish government and its supporters as part of a plot to undermine Ankara’s relations with Russia.
But despite their very vocal commitment to patch up relations, the two countries remain firmly at odds over Syria.
Speaking just hours ahead of his meeting with Mr Putin, Mr Erdogan said Russia was an important player in establishing peace in Syria, but reiterated calls for the departure of Syrian president Bashar Al Assad, an ally of the Kremlin.
“We don’t want Syria’s disintegration, but the departure of Bashar Assad who is guilty for the deaths of 600,000 people,” Mr Erdogan told Russia’s state-run Tass news agency. “Syria’s unity cannot be kept with Assad. And we cannot support a murderer who has committed acts of state terror.”
Russia intervened militarily in Syria late last year to back Mr Al Assad’s regime and has shown no sign of withdrawing support. Ankara, meanwhile, has been actively working to help the country’s rebels since early on in the conflict and continues to support them, despite recently saying it wanted to repair relations with Syria. So far, diplomatic efforts to solve the conflict have failed, largely because the Syrian government has refused to discuss the political future of Mr Al Assad, who the opposition demands leave power.
Moscow and Ankara also remain divided over Kurdish factions in the Middle East. Not only is Russia co-operating with the Syrian-Kurdish YPG faction, which Ankara considers a terrorist organisation, but as recently as May Mr Erdogan accused Moscow of funnelling weapons to the Kurdistan Workers Party, the PKK, which is at war with the Turkish government in eastern Turkey. And in his Tuesday interview with Tass, Mr Erdogan suggested that arms given to the YPG – which has friendly relations with the US and Russia – end up in the hands of ISIL and hamper the fight against the extremist group.
Although the two countries’ foreign policy goals continue to collide, it seems that – for now at least – their business ties trump this.
A travel ban put in place after the downing of the Russian jet left Turkey without the millions of Russian tourists it hosted every year. And trade between the two countries fell by 43 per cent to U$6.1 billion (Dh22.4bn) between January and May of this year.
The restoration of ties with Russia comes at a time when Turkey is increasingly distancing itself from traditional allies following last month’s coup attempt, which it blames on the US-based cleric Fethullah Gulen. Mr Erdogan’s government has repeatedly demanded that Washington apprehend and hand over Mr Gulen, but the US says it first needs to be presented with evidence and follow judicial process.
This has left Ankara increasingly agitated and hostile. On Tuesday, Turkey’s justice minister said that the US will “sacrifice relations” if it does not hand over Mr Gulen.
Turkey’s reaction to the coup attempt has also damaged its relations with European countries. Amid the post-coup attempt purge that has seen tens of thousands of people sacked from their jobs — and some jailed — the Turkish government has come under heavy criticism from European Union countries. Ankara has also been warned that its efforts to join the EU will fail if Turkey reintroduces the death penalty, a move Mr Erdogan has advocated for following the coup attempt.
In response, Turkish officials have hinted that countries critical of the purge are sympathetic or even aligned with the coup plotters.
On Tuesday, Mr Erdogan pointed out that Mr Putin was one of the first world leaders to call him after the failed coup attempt.
“Your call after the coup attempt made us happy,” he said.
jwood@thenational.ae
*With additional reporting from Agence France-Presse
More on Quran memorisation:
Company%20profile
%3Cp%3EName%3A%20Tabby%3Cbr%3EFounded%3A%20August%202019%3B%20platform%20went%20live%20in%20February%202020%3Cbr%3EFounder%2FCEO%3A%20Hosam%20Arab%2C%20co-founder%3A%20Daniil%20Barkalov%3Cbr%3EBased%3A%20Dubai%2C%20UAE%3Cbr%3ESector%3A%20Payments%3Cbr%3ESize%3A%2040-50%20employees%3Cbr%3EStage%3A%20Series%20A%3Cbr%3EInvestors%3A%20Arbor%20Ventures%2C%20Mubadala%20Capital%2C%20Wamda%20Capital%2C%20STV%2C%20Raed%20Ventures%2C%20Global%20Founders%20Capital%2C%20JIMCO%2C%20Global%20Ventures%2C%20Venture%20Souq%2C%20Outliers%20VC%2C%20MSA%20Capital%2C%20HOF%20and%20AB%20Accelerator.%3Cbr%3E%3C%2Fp%3E%0A
The%20specs
%3Cp%3E%3Cstrong%3EPowertrain%3A%20%3C%2Fstrong%3ESingle%20electric%20motor%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E201hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E310Nm%0D%3Cbr%3E%3Cstrong%3ETransmission%3A%20%3C%2Fstrong%3ESingle-speed%20auto%0D%3Cbr%3E%3Cstrong%3EBattery%3A%20%3C%2Fstrong%3E53kWh%20lithium-ion%20battery%20pack%20(GS%20base%20model)%3B%2070kWh%20battery%20pack%20(GF)%0D%3Cbr%3E%3Cstrong%3ETouring%20range%3A%20%3C%2Fstrong%3E350km%20(GS)%3B%20480km%20(GF)%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh129%2C900%20(GS)%3B%20Dh149%2C000%20(GF)%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
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.”
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
SERIES INFO
Afghanistan v Zimbabwe, Abu Dhabi Sunshine Series
All matches at the Zayed Cricket Stadium, Abu Dhabi
Test series
1st Test: Zimbabwe beat Afghanistan by 10 wickets
2nd Test: Wednesday, 10 March – Sunday, 14 March
Play starts at 9.30am
T20 series
1st T20I: Wednesday, 17 March
2nd T20I: Friday, 19 March
3rd T20I: Saturday, 20 March
TV
Supporters in the UAE can watch the matches on the Rabbithole channel on YouTube
MANDOOB
%3Cp%3EDirector%3A%20Ali%20Kalthami%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Mohammed%20Dokhei%2C%20Sarah%20Taibah%2C%20Hajar%20Alshammari%3C%2Fp%3E%0A%3Cp%3ERating%3A%204%2F5%3C%2Fp%3E%0A%3Cp%3E%3C%2Fp%3E%0A
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.