Germany's new Foreign Minister Annalena Baerbock has put her critical stance towards Moscow on display, describing the Russian troop build-up near Ukraine as a threat to all of Europe's security.
Ms Baerbock, a co-leader of Germany's Green party, held talks with Nato chief Jens Stoltenberg on her first full day in office on Thursday, and told the Kremlin it would pay a high price if it invades Ukraine.
She separately told foreign ministry staff that Berlin needed to rethink its attitude towards countries such as Russia and China that seek to “gain advantages in ways we don't find acceptable".
Ms Baerbock visited Paris and Brussels on Thursday, in a symbol of Germany's steadfast alliances with France, the EU and Nato.
“Nato remains an indispensable pillar of security in Europe,” she told reporters after meeting Mr Stoltenberg at Nato headquarters in Brussels.
“The Russian troop development near Ukraine must concern us, with a view to Ukraine itself but also with a view to our security in Europe,” she said.
She called on Russia to hold talks with Nato, an offer which Mr Stoltenberg said had been made to Moscow but not accepted.
Speaking earlier in Paris, Ms Baerbock said Ukraine's territorial integrity and sovereignty were not negotiable for the new government in Berlin.
“Russia would pay a high political, and especially economic, price for any renewed attack on Ukrainian statehood,” she said at a press conference with French counterpart Jean-Yves Le Drian.
Ms Baerbock stressed continuity in Germany's traditional alliances with the US, France and the EU, but called for a greater emphasis on climate change and a more critical stance towards Moscow and Beijing.
While the previous government also criticised Russia over Ukraine and other issues, it was sometimes accused of an overly commerce-driven stance, and was criticised by Ms Baerbock for approving the Nord Stream 2 gas pipeline.
“We need to think more about how we get to grips with this reasoning of competition and antagonism,” she said of countries such as China and Russia.
Mr Stoltenberg said Germany’s support was more important than ever given the potential threat from Russia.
He said he agreed with Ms Baerbock that climate change could have implications for security policy. “This is a defining challenge of our time, and Nato is determined to adapt and mitigate the effects of global warming,” he said.
In talks with EU foreign policy chief Josep Borrell, she discussed the potential for more integration within the bloc. “The future of my country is forever embedded in the common European destiny,” she said.
She hopes to use Germany’s presidency of the G7 in 2022 to push for more international climate co-operation, a priority of the new government.
Ms Baerbock is Germany's first female foreign minister and the second from the Green party, which has joined the government for the first time in 16 years.
The coalition between the Social Democrats, Greens and Free Democrats took office on Wednesday, led by Chancellor Olaf Scholz.
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 tour of the Netherlands
UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match
UAE currency: the story behind the money in your pockets
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