A summit of EU leaders on Tuesday exposed divisions over how far Europe should seek military independence from Washington, after France was enraged by seeing a submarine contract bulldozed by the US.
France’s humiliation after it was left out in the cold by the Aukus pact, an alliance between the UK, US and Australia, came with calls for EU autonomy already growing louder after the messy withdrawal from Afghanistan.
But some countries in Central and Eastern Europe are concerned a European army would weaken Nato, which they regard as their key line of defence against Russia.
The EU has a reserve of “battle groups” that have been on standby since 2007 but never used. Brussels suggests replacing them with a rapid response force, which could carry out operations such as the evacuation from Kabul.
The summit in Slovenia ended without concrete conclusions as the EU prepares to present a new strategic blueprint next month.
French President Emmanuel Macron used the dinner to call on EU leaders to be “clear with ourselves about what we want”.
“On the technological and industrial, economic, financial, but also military levels, we must build the terms of a stronger Europe,” he said.
“You know that this is what I deeply believe. A Europe that can take its share of responsibilities for itself and which can choose its partners, while working closely with its historical allies.”
Charles Michel, the president of the European Council, joined Mr Macron in making the case for EU autonomy. “To become more effective and assertive on the international stage, the European Union needs to increase its capacity to act autonomously,” he said.
“We are committed to consolidating our strengths and strengthening our resilience by reducing our critical dependencies.”
The EU’s executive arm did not present a concrete proposal at the summit, which came ahead of talks on EU enlargement to the Balkans on Wednesday.
Dutch Prime Minister Mark Rutte said the meeting had been a useful “brainstorming debate” but acknowledged different attitudes within Europe.
“Some member states will put more emphasis on the European side, our collective defence, whilst others will put more emphasis on the need for a strong transatlantic relationship,” he said.
“But we all agree that both elements have to be in.”
Russian threat
The US alliance is regarded as critical to countering the threat of Russia. Nato’s relations with Moscow were described at a June summit as being at their lowest point since the end of the Cold War.
Krisjanis Karins, the prime minister of Latvia, was among those to stress transatlantic ties at Tuesday’s summit.
“It’s a good idea to speak about how, in Europe, we can make ourselves stronger. That is not, I think, a problem,” he said.
“The question is – how do we make ourselves stronger within the alliances that we have? The EU-Nato alliance, the transatlantic alliance is a very important aspect that should not in any way be compromised.”
The president of Lithuania, Gitanas Nauseda, made his point in an early-morning tweet decorated with EU and US flags.
“The US is a key partner of the EU,” he said. “We share same values and long history. The EU and US need to work together on strengthening the transatlantic bond.”
Joe Biden’s election as US president raised hopes for a renewal of Nato ties after the stormy Donald Trump years.
But the alliance faced questions over its future after the US withdrawal from Afghanistan effectively tied the hands of Washington’s European allies.
Speaking on Wednesday, Nato Secretary-General Jens Stoltenberg came to the organisation's defence and said the fallout from Afghanistan should not weaken transatlantic ties.
"The crisis in Afghanistan does not change the need for North America and Europe to stand together in a more dangerous and competitive world," he told a German panel reviewing the mission in Afghanistan.
"Russia’s aggressive actions, the continued threat of terrorism, China flexing its economic and military muscles, sophisticated cyber-attacks, the proliferation of nuclear weapons and the security impact of climate change – these are challenges that no country and no continent can face alone."
While arguments were still raging over Afghanistan, ties were frayed further when the US, UK and Australia announced their deal to build submarines, tearing up a deal for France to provide the vessels.
It left France sidelined in the Indo-Pacific after it had sought to position itself as a key strategic player in the region.
Paris and Washington have since sought to repair ties. Mr Macron spoke to US Secretary of State Antony Blinken on Tuesday.
The Elysee Palace said Mr Blinken's visit would contribute to "restoring confidence" between the sides.
The six points:
1. Ministers should be in the field, instead of always at conferences
2. Foreign diplomacy must be left to the Ministry of Foreign Affairs and International Co-operation
3. Emiratisation is a top priority that will have a renewed push behind it
4. The UAE's economy must continue to thrive and grow
5. Complaints from the public must be addressed, not avoided
6. Have hope for the future, what is yet to come is bigger and better than before
The biog
Favourite film: Motorcycle Dairies, Monsieur Hulot’s Holiday, Kagemusha
Favourite book: One Hundred Years of Solitude
Holiday destination: Sri Lanka
First car: VW Golf
Proudest achievement: Building Robotics Labs at Khalifa University and King’s College London, Daughters
Driverless cars or drones: Driverless Cars
How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
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.”
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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COMPANY PROFILE
Name: N2 Technology
Founded: 2018
Based: Dubai, UAE
Sector: Startups
Size: 14
Funding: $1.7m from HNIs
SPECS
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