UAE Foreign Minister in Moscow says Ukraine war needs diplomatic resolution


Ismaeel Naar
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UAE Minister of Foreign Affairs and International Co-Operation Sheikh Abdullah bin Zayed on Thursday emphasised the need for a diplomatic solution to the war in Ukraine during a visit to Moscow to discuss the crisis as well as energy and food security, among other issues.

Sheikh Abdullah said the UAE supported all diplomatic attempts at a resolution and was ready to be in touch with all sides to achieve this. He also said that he believes all sides in the conflict are capable of reaching a diplomatic solution.

During a press conference following his meeting with Russian Foreign Minister Sergey Lavrov in Moscow on Thursday, the UAE minister stressed the importance of keeping food markets stable as a top priority for the region and the world.

Russia's Foreign Minister Sergei Lavrov shakes hands with UAE Minister of Foreign Affairs and International Co-Operation Sheikh Abdullah bin Zayed during a news conference following their talks in Moscow. Reuters
Russia's Foreign Minister Sergei Lavrov shakes hands with UAE Minister of Foreign Affairs and International Co-Operation Sheikh Abdullah bin Zayed during a news conference following their talks in Moscow. Reuters

“Securing the global food supply is considered necessary as there are a lot of countries in the world either in our region or abroad that largely depend on the import or export of grain and other basic food supplies around the world,” Sheikh Abdullah said on Thursday.

The pair also discussed the latest efforts toward a diplomatic solution to the Ukraine crisis as well as energy and food security, among other issues.

Sheikh Abdullah's visit comes three weeks after Russia invaded Ukraine, sparking an international backlash and leading to heavy western sanctions that have sent the global price of oil skyrocketing. Wheat and other commodity prices are also causing food security concerns in many countries.

"It is important to co-operate with Russia to enhance the security of energy markets and food security," he said.

He also said it was important that the UAE discussed with Russia the crises in Ukraine, Syria, Yemen, Iraq, Iran and Lebanon, according to televised statements prior to his closed-door meeting with Russian Foreign Minister Sergey Lavrov.

“We look forward to developing relations between the UAE and Russia and diversifying the areas of interdependence between our citizens, institutions and our governments,” Sheikh Abdullah said.

Mr Lavrov thanked the UAE for its “balanced stance on the Ukraine crisis”.

The UAE has urged a halt in fighting and called for a diplomatic solution since the war began in late February.

The UAE, China and India abstained in a February 26 UN Security Council resolution condemning Russia's invasion – a bill vetoed by Moscow – but supported a March 2 General Assembly vote deploring the war and calling for the immediate halt to all hostilities.

Last Wednesday, the UAE foreign minister spoke to US Secretary of State Antony Blinken on the developments in Ukraine and the importance of working to reach a political settlement to the crisis.

Earlier this month, the UAE announced it would provide relief aid to affected civilians in Ukraine worth $5 million in response to an urgent appeal by the United Nations.

Company%20profile
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Company Profile

Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

Total sales: Over 1,000 deliveries in three months

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.”

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Updated: March 17, 2022, 5:00 PM