Brussels is ready to "mobilise lots of money" to invest in the Western Balkans, as EU leaders gathered in Slovenia on Wednesday to the reassure six countries that the path to membership of the bloc is still open.
After weeks of deliberation, EU leaders agreed that Serbia, Montenegro, Bosnia-Herzegovina, North Macedonia, Kosovo and Albania have a place in the world's largest trading bloc if they fulfil the criteria on areas from judicial reform to economics. But they did resist calls to set a 2030 goal for accession.
There is growing concern that the lengthy wait for the six states could lead to them falling into the arms of China and Russia.
European Council President Charles Michel said the summit would "be the opportunity to make clear that we are ready mobilize a lot of money in order to invest in the country but also in order to support reforms - economic reforms but also the fight against corruption, reforms in order to improve the governance".
But speak afterwards, Mr Michel conceded that it would not be an easy path. "In all frankness, there is discussion among the 27 (EU member states) about our capacity to take in new members."
Albania and North Macedonia have met the criteria to start talks, but all 27 countries must agree unanimously for the process to move forward.
Brussels is keen to show that it is the region's best hope and has talked up economic support worth as much as €30 billion ($34.61bn).
Latvian Prime Minister Arturs Krisjanis Karins said further reforms were needed by the six Balkan states, but cautioned, “either Europe extends the hand, and pulls these countries towards us or someone else will extend the hand and pull the countries in a different direction".
“In Latvia, the process of joining the European Union was the game changer in terms of enabling reform and, of course in the Western Balkans, they still have some ways to go,” he said.
Moscow and Beijing have sent millions of Covid-19 vaccines to the region.
European Commission chief Ursula von der Leyen insisted that the EU saw a future of close partnership with the six countries, despite its stalling progress on admitting them.
“We want to send a very clear message and that message is that Western Balkans belong to the European Union, we want them in the European Union,” she said.
“We are one European family … and I'm deeply convinced we share the same destiny.”
The EU's drive for enlargement – at one point a key policy for the bloc – has ground to a halt in recent years. Some richer members fear sparking a new wave of migration. Some applicants are struggling with the required reforms, especially on democratic norms.
“I have no illusions about a quick accession to the EU,” said Serbian President Aleksandar Vucic, whose country applied for EU membership in 2009.
“The political needs of the EU are such that Balkan enlargement is neither a dominant nor a popular issue.”
The bloc has also failed to make good on promises that are tangible to citizens, such as visa-free travel for Kosovo.
"It has been a great injustice, a lack of fairness towards citizens of our country," Kosovo's prime minister Albin Kurti said on arrival. He pointed out that that five EU states still did not recognise Kosovo's independence. That is largely out of fear of emboldening separatist movements at home, such as in Spain's Catalonia.
"I advocate for a lack of fear on the EU's side, and a lack of bitterness on the side of the Balkans," he added. "I am still hopeful".
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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.”
UAE currency: the story behind the money in your pockets
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BABYLON
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Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Roll%20of%20Honour%2C%20men%E2%80%99s%20domestic%20rugby%20season
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Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
ANDROID%20VERSION%20NAMES%2C%20IN%20ORDER
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'Laal Kaptaan'
Director: Navdeep Singh
Stars: Saif Ali Khan, Manav Vij, Deepak Dobriyal, Zoya Hussain
Rating: 2/5
EA Sports FC 26
Publisher: EA Sports
Consoles: PC, PlayStation 4/5, Xbox Series X/S
Rating: 3/5