UN envoy Colin Stewart, centre, with Cyprus President Nicos Anastasiades, left, and Turkish Cypriot leader Ersin Tatar during a reception in Nicosia. Photo: EPA
UN envoy Colin Stewart, centre, with Cyprus President Nicos Anastasiades, left, and Turkish Cypriot leader Ersin Tatar during a reception in Nicosia. Photo: EPA
UN envoy Colin Stewart, centre, with Cyprus President Nicos Anastasiades, left, and Turkish Cypriot leader Ersin Tatar during a reception in Nicosia. Photo: EPA
UN envoy Colin Stewart, centre, with Cyprus President Nicos Anastasiades, left, and Turkish Cypriot leader Ersin Tatar during a reception in Nicosia. Photo: EPA

Rival Cypriot leaders hold rare meeting in buffer zone


Jamie Prentis
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The leaders of Cyprus’s rival administrations held a rare meeting in the divided island’s buffer zone at an informal reception hosted by the new UN envoy Colin Stewart.

The two sides hold fundamentally differing views over the future of Cyprus, which has been split since 1974 when a brief, Greek-backed coup triggered a Turkish invasion.

The reception at the Ledra Palace Hotel, in the buffer zone of the island's divided capital Nicosia, was attended by Cypriot President Nicos Anastasiades and Turkish Cypriot leader Ersin Tatar.

Mr Tatar’s breakaway government is recognised only by Turkey, which has about 35,000 troops stationed in the north of Cyprus.

While the internationally recognised government in the south supports a federal future, Mr Tatar supports a two-state solution – something opposed by most of the international community, including the EU.

“We have energy to continue to push your people to solve these little problems that really affect the lives, the everyday lives of Cypriots,” Mr Stewart said at the event, billed primarily as a social gathering geared to breaking the ice between the two leaders in the absence of formal talks.

  • The old town square of Varosha where many events used to take place. The seaside resort has been under Turkish occupation since the Mediterranean island Cyprus split in two in 1974. All photos: Silvio Rusmigo / The National
    The old town square of Varosha where many events used to take place. The seaside resort has been under Turkish occupation since the Mediterranean island Cyprus split in two in 1974. All photos: Silvio Rusmigo / The National
  • The beachfront of Varosha. In its heyday, the glamorous area, in the city of Famagusta, was considered to be the crown jewel of Cyprus
    The beachfront of Varosha. In its heyday, the glamorous area, in the city of Famagusta, was considered to be the crown jewel of Cyprus
  • An abandoned hotel with its empty swimming pool. The once bustling and colourful place became a ghost town after Turkish troops sealed off the area to its 17,000 former Greek-speaking residents in 1974
    An abandoned hotel with its empty swimming pool. The once bustling and colourful place became a ghost town after Turkish troops sealed off the area to its 17,000 former Greek-speaking residents in 1974
  • Tourists walk through Varosha. The Turkish-Cypriot administration reopened a sliver of the town this year, with plans for a wider demilitarisation of the area
    Tourists walk through Varosha. The Turkish-Cypriot administration reopened a sliver of the town this year, with plans for a wider demilitarisation of the area
  • Cyclists use a recently repaired road
    Cyclists use a recently repaired road
  • For Lenia Nikolou, who fled her home town as a 20-year-old newlywed in 1974, visiting the places of her youth today invokes a mixture of happiness, anger and pain
    For Lenia Nikolou, who fled her home town as a 20-year-old newlywed in 1974, visiting the places of her youth today invokes a mixture of happiness, anger and pain
  • Lenia Nikolou walks through the quiet streets of Varosha on a trip down memory lane
    Lenia Nikolou walks through the quiet streets of Varosha on a trip down memory lane
  • Serdar Atai says his Turkish-Cypriot father volunteered to order the inhabitants, many of whom he knew, to leave Varosha
    Serdar Atai says his Turkish-Cypriot father volunteered to order the inhabitants, many of whom he knew, to leave Varosha
  • A ruined shop lies vacant
    A ruined shop lies vacant

Egyptian Foreign Minister Sameh Shoukry rebuffed any two-state future when he visited Cyprus on Tuesday.

Turkey and Turkish Cypriots say that a two-state solution is the only realistic way to break the decades-long impasse. But the Greek-Cypriot government in the south fears any resolution that would allow Turkey to further entrench its position.

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.”

Updated: December 15, 2021, 12:09 PM