The G7 on Monday offered a helping hand to India, South Africa, Argentina, Senegal and Indonesia in turning their economies green, as western powers try to position themselves as a force for good amid spiralling global crises.
The leaders of the five guest countries flew to the summit in Germany with the G7 hosts hoping to bring them into the fold on issues including energy, food and the international security order.
In a joint declaration, the 12 countries and the European Union said they would work together to speed up the race to climate neutrality, while ensuring energy security at a time of soaring prices.
The specifics could include partnerships with India, Senegal and Indonesia and to clean up their energy sectors, modelled on an arrangement with South Africa that includes a promise of $8.5 billion of western aid.
The G7 and partners said they would push for “decent green jobs” and put a particular focus on “delivering socio-economic benefits and development opportunities” for the five emerging economies.
“Phasing down unabated coal and scaling up clean and renewable energies needs to be environmentally and socially just,” adopting India’s favoured but controversial wording of phasing down rather than out.
Indian Prime Minister Narendra Modi used the summit to tout his country’s efforts on clean energy and green growth after sharing laughs and handshakes with leaders including US President Joe Biden.
Indonesia’s President Joko Widodo, who will host a G20 summit in November, joined Mr Modi on a military helicopter to the G7 meeting, from where he will continue to Ukraine and Russia to meet leaders on both sides of the war.
The circle was widened further by international organisations such as the UN and the World Health Organisation, with climate policies only one part of the G7’s push to work with less established allies.
Western officials insist they do not want to return to the rival blocs of the Cold War, with German Chancellor Olaf Scholz saying on Monday that this would be falling into a Russian trap.
However, they have made no secret of wanting to counter China’s growing influence and prevent Russia from forging new alliances to escape isolation.
"As democracies, we look at the world similarly. And is good, important and necessary that we talk to each other,” said Mr Scholz, who acknowledged that the larger group was not unanimous on the war in Ukraine.
The guests arrived for talks after Mr Biden and other G7 leaders promised a major investment push in developing countries in a thinly-veiled riposte to China’s multi-trillion dollar Belt and Road initiative.
Mr Biden said the US would organise $200 billion in public and private funding over the next five years towards the so-called Partnership for Global Infrastructure and Investment.
The five guests are seen by western officials as democracies uncommitted in the battle for influence, with Beijing only last week making overtures to India and South Africa at a summit with Russia.
Mr Biden spoke of the US and its allies “offering better options”, without naming China as the alternative, by “using the global best practices” such as labour and environmental standards.
Mr Scholz said it was “time to show our offer to the world”, after G7 leaders agreed the principle of an infrastructure push at last year’s summit in Britain.
Diplomats have prepared a declaration this year committing the G7 and its guests to principles such as democracy, the rule of law and respect for international borders, an implied repudiation of Russia.
The G7 countries also hope to show leadership on global hunger, a problem worsened by the blockade of Ukrainian grain exports and causing much concern in developing countries.
“We commit to demonstrate global responsibility and solidarity through working to address the international impacts of Russia’s aggression, especially on the most vulnerable,” they said in a joint statement on Ukraine.
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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
Leap of Faith
Michael J Mazarr
Public Affairs
Dh67
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.”
How to donate
Text the following numbers:
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SPECS
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Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
What is Reform?
Reform is a right-wing, populist party led by Nigel Farage, a former MEP who won a seat in the House of Commons last year at his eighth attempt and a prominent figure in the campaign for the UK to leave the European Union.
It was founded in 2018 and originally called the Brexit Party.
Many of its members previously belonged to UKIP or the mainstream Conservatives.
After Brexit took place, the party focused on the reformation of British democracy.
Former Tory deputy chairman Lee Anderson became its first MP after defecting in March 2024.
The party gained support from Elon Musk, and had hoped the tech billionaire would make a £100m donation. However, Mr Musk changed his mind and called for Mr Farage to step down as leader in a row involving the US tycoon's support for far-right figurehead Tommy Robinson who is in prison for contempt of court.
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
First Person
Richard Flanagan
Chatto & Windus
FIXTURES
Monday, January 28
Iran v Japan, Hazza bin Zayed Stadium (6pm)
Tuesday, January 29
UAEv Qatar, Mohamed Bin Zayed Stadium (6pm)
Friday, February 1
Final, Zayed Sports City Stadium (6pm)
PROFILE BOX
Company name: Overwrite.ai
Founder: Ayman Alashkar
Started: Established in 2020
Based: Dubai International Financial Centre, Dubai
Sector: PropTech
Initial investment: Self-funded by founder
Funding stage: Seed funding, in talks with angel investors
Washmen Profile
Date Started: May 2015
Founders: Rami Shaar and Jad Halaoui
Based: Dubai, UAE
Sector: Laundry
Employees: 170
Funding: about $8m
Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures
UAE currency: the story behind the money in your pockets
Tamkeen's offering
- Option 1: 70% in year 1, 50% in year 2, 30% in year 3
- Option 2: 50% across three years
- Option 3: 30% across five years
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Infiniti QX80 specs
Engine: twin-turbocharged 3.5-liter V6
Power: 450hp
Torque: 700Nm
Price: From Dh450,000, Autograph model from Dh510,000
Available: Now