The G7 invited the leaders of partner countries to their summit in Germany on Monday. PA
The G7 invited the leaders of partner countries to their summit in Germany on Monday. PA
The G7 invited the leaders of partner countries to their summit in Germany on Monday. PA
The G7 invited the leaders of partner countries to their summit in Germany on Monday. PA

G7 makes green alliance with guests in overture to global south


Tim Stickings
  • English
  • Arabic

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.

  • Britain's Prime Minister Boris Johnson, US President Joe Biden, German Chancellor Olaf Scholz, France's President Emmanuel Macron and Italian Prime Minister Mario Draghi chat before their meeting at Elmau Castle on Tuesday morning. Getty Images
    Britain's Prime Minister Boris Johnson, US President Joe Biden, German Chancellor Olaf Scholz, France's President Emmanuel Macron and Italian Prime Minister Mario Draghi chat before their meeting at Elmau Castle on Tuesday morning. Getty Images
  • Olaf Scholz speaks at a press conference at Elmau Castle. EPA
    Olaf Scholz speaks at a press conference at Elmau Castle. EPA
  • Joe Biden waves as he crosses the tarmac next to Air Force One at Munich International Airport. The US president is leaving Germany on his way to Spain to attend a Nato summit. AP
    Joe Biden waves as he crosses the tarmac next to Air Force One at Munich International Airport. The US president is leaving Germany on his way to Spain to attend a Nato summit. AP
  • Boris Johnson speaks to press at the G7 summit. PA
    Boris Johnson speaks to press at the G7 summit. PA
  • Emmanuel Macron holds a press conference at Elmau Castle. AFP
    Emmanuel Macron holds a press conference at Elmau Castle. AFP
  • Vans equipped with electronic detection devices are stationed in front of Elmau Castle, where the G7 summit is taking place. AFP
    Vans equipped with electronic detection devices are stationed in front of Elmau Castle, where the G7 summit is taking place. AFP
  • Boris Johnson makes a point during a meeting with the Prime Minister of Japan Fumio Kishida. PA
    Boris Johnson makes a point during a meeting with the Prime Minister of Japan Fumio Kishida. PA
  • Clockwise from centre: Olaf Scholz; Joe Biden; Boris Johnson; Fumio Kishida; European Commission President Ursula von der Leyen, European Council President Charles Michel; Mario Draghi; Canada's Prime Minister Justin Trudeau, and Emmanuel Macron listen to an online address by Ukraine's President Volodymyr Zelenskyy at the G7 summit in Bavaria. Reuters
    Clockwise from centre: Olaf Scholz; Joe Biden; Boris Johnson; Fumio Kishida; European Commission President Ursula von der Leyen, European Council President Charles Michel; Mario Draghi; Canada's Prime Minister Justin Trudeau, and Emmanuel Macron listen to an online address by Ukraine's President Volodymyr Zelenskyy at the G7 summit in Bavaria. Reuters
  • Volodymyr Zelenskyy attends a working session of G7 leaders via video link from Kyiv, Ukraine. Reuters
    Volodymyr Zelenskyy attends a working session of G7 leaders via video link from Kyiv, Ukraine. Reuters
  • Olaf Scholz waves alongside G7 leaders and participants of the outreach programme as they pose for a 'family photo' at the Bavarian resort of Schloss Elmau. Reuters
    Olaf Scholz waves alongside G7 leaders and participants of the outreach programme as they pose for a 'family photo' at the Bavarian resort of Schloss Elmau. Reuters
  • Emmanuel Macron greets India's Prime Minister Narendra Modi during the official welcome ceremony of G7 leaders. AP
    Emmanuel Macron greets India's Prime Minister Narendra Modi during the official welcome ceremony of G7 leaders. AP
  • G7 leaders meet outreach guests at the summit. Reuters
    G7 leaders meet outreach guests at the summit. Reuters
  • Boris Johnson speaks to Charles Michel. PA
    Boris Johnson speaks to Charles Michel. PA
  • Amelie Derbaudrenghien, Britta Ernst, Carrie Johnson and Brigitte Macron at Elmauer Alm Mountain Restaurant. Reuters
    Amelie Derbaudrenghien, Britta Ernst, Carrie Johnson and Brigitte Macron at Elmauer Alm Mountain Restaurant. Reuters
  • G7 leaders Olaf Scholz and Justin Trudeau talk a walk at Elmau Castle in Bavaria. EPA
    G7 leaders Olaf Scholz and Justin Trudeau talk a walk at Elmau Castle in Bavaria. EPA
  • European Council President Charles Michel greets Japanese Prime Minister Fumio Kishida on the sidelines of the G7 summit at Castle Elmau in Bavaria. AP
    European Council President Charles Michel greets Japanese Prime Minister Fumio Kishida on the sidelines of the G7 summit at Castle Elmau in Bavaria. AP
  • Horseback police patrol at Elmau Castle in Bavaria. EPA
    Horseback police patrol at Elmau Castle in Bavaria. EPA
  • G7 leaders have dinner at Elmau Castle in Kruen, Germany. Clockwise from front left, European Council President Charles Michel, Italy's Prime Minister Mario Draghi, Canada's Prime Minister Justin Trudeau, French President Emmanuel Macron, German Chancellor Olaf Scholz, US President Joe Biden, British Prime Minister Boris Johnson, Japan's Prime Minister Fumio Kishida and European Commission President Ursula von der Leyen. AP
    G7 leaders have dinner at Elmau Castle in Kruen, Germany. Clockwise from front left, European Council President Charles Michel, Italy's Prime Minister Mario Draghi, Canada's Prime Minister Justin Trudeau, French President Emmanuel Macron, German Chancellor Olaf Scholz, US President Joe Biden, British Prime Minister Boris Johnson, Japan's Prime Minister Fumio Kishida and European Commission President Ursula von der Leyen. AP
  • From left, Mr Draghi, Ms von der Leyen, Mr Biden, Mr Scholz, Mr Johnson, Mr Trudeau, Mr Kishida, Mr Macron and Mr Michel. AFP
    From left, Mr Draghi, Ms von der Leyen, Mr Biden, Mr Scholz, Mr Johnson, Mr Trudeau, Mr Kishida, Mr Macron and Mr Michel. AFP
  • Flowers for President Alberto Fernandez of Argentina at Munich Airport as he arrives to take part in the G7 summit in Bavaria. AFP
    Flowers for President Alberto Fernandez of Argentina at Munich Airport as he arrives to take part in the G7 summit in Bavaria. AFP
  • Elmau Castle in southern Germany, the venue for the G7 summit. AFP
    Elmau Castle in southern Germany, the venue for the G7 summit. AFP
  • The view from a German armed forces helicopter on its way to the G7 summit at Elmau Castle. AFP
    The view from a German armed forces helicopter on its way to the G7 summit at Elmau Castle. AFP
  • Gazing out from the helicopter. AFP
    Gazing out from the helicopter. AFP
  • In Berlin, campaigners sit near a sign reading 'G7: Who owes who?' at the Ministry of Finance building to demand debt relief for countries of the global south. Reuters
    In Berlin, campaigners sit near a sign reading 'G7: Who owes who?' at the Ministry of Finance building to demand debt relief for countries of the global south. Reuters
  • From left, Mr Michel, Mr Draghi, Mr Trudeau, Mr Macron, Mr Scholz, Mr Biden, Mr Johnson, Mr Kishida and Ms von der Leyen at the summit at Elmau Castle. EPA
    From left, Mr Michel, Mr Draghi, Mr Trudeau, Mr Macron, Mr Scholz, Mr Biden, Mr Johnson, Mr Kishida and Ms von der Leyen at the summit at Elmau Castle. EPA
  • Mr Draghi talks with Mr Biden. EPA
    Mr Draghi talks with Mr Biden. EPA
  • Mr Scholz shakes hands with Mr Kishida. EPA
    Mr Scholz shakes hands with Mr Kishida. EPA
  • Mr Johnson, Mr Scholz and Mr Biden. AFP
    Mr Johnson, Mr Scholz and Mr Biden. AFP
  • A worker cleans the red carpet at Elmau Castle in the Bavarian mountains. AFP
    A worker cleans the red carpet at Elmau Castle in the Bavarian mountains. AFP
  • Mr Kishida leads the Japanese delegation. AFP
    Mr Kishida leads the Japanese delegation. AFP
  • The G7 logo at Elmau Castle. AFP
    The G7 logo at Elmau Castle. AFP
  • Mr Biden and Mr Macron. AP
    Mr Biden and Mr Macron. AP
  • The leaders at a photocall. Reuters
    The leaders at a photocall. Reuters
  • Mr Biden walks with Ms von der Leyen and Mr Michel. Reuters
    Mr Biden walks with Ms von der Leyen and Mr Michel. Reuters
  • Former German alpine ski racer Christian Neureuther, British Prime Minister's wife Carrie Johnson, former German biathlete Miriam Neureuther, French President's wife Brigitte Macron, German Chancellor's wife Britta Ernst and European Council President's wife Amelie Derbaudrenghien take part in a Nordic Walk as part of the spouses' programme. Reuters
    Former German alpine ski racer Christian Neureuther, British Prime Minister's wife Carrie Johnson, former German biathlete Miriam Neureuther, French President's wife Brigitte Macron, German Chancellor's wife Britta Ernst and European Council President's wife Amelie Derbaudrenghien take part in a Nordic Walk as part of the spouses' programme. Reuters
  • Mr Macron, Mr Biden, Ms von der Leyen and Mr Trudeau. AP
    Mr Macron, Mr Biden, Ms von der Leyen and Mr Trudeau. AP
  • Mr Draghi, Mr Trudeau, Mr Michel, Mr Scholz and Mr Johnson. AFP
    Mr Draghi, Mr Trudeau, Mr Michel, Mr Scholz and Mr Johnson. AFP
  • Ms von der Leyen chats with Mr Trudeau. AFP
    Ms von der Leyen chats with Mr Trudeau. AFP
  • Mr Biden is welcomed by Mr Scholz and his wife Britta Ernst. AP
    Mr Biden is welcomed by Mr Scholz and his wife Britta Ernst. AP
  • The leaders get down to business. AP
    The leaders get down to business. AP
  • Mr Scholz and Ms Ernst welcome the Macrons. Reuters
    Mr Scholz and Ms Ernst welcome the Macrons. Reuters
  • Mr Macron, Mr Biden and Ms von der Leyen. AP
    Mr Macron, Mr Biden and Ms von der Leyen. AP
  • Mr Scholz greets Mr and Mrs Johnson. PA
    Mr Scholz greets Mr and Mrs Johnson. PA
  • Mr Scholz and Ms Ernst welcome Ms von der Leyen to Elmau Castle. AFP
    Mr Scholz and Ms Ernst welcome Ms von der Leyen to Elmau Castle. AFP
  • Mr Johnson meets Mr Trudeau. PA
    Mr Johnson meets Mr Trudeau. PA
  • A helicopter flies over the G7 venue. AP Photo
    A helicopter flies over the G7 venue. AP Photo

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.”

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Most sought after workplace benefits in the UAE
  • Flexible work arrangements
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  • 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.

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Richard Flanagan
Chatto & Windus 

FIXTURES

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Friday, February 1
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Washmen Profile

Date Started: May 2015

Founders: Rami Shaar and Jad Halaoui

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Funders: Addventure, B&Y Partners, Clara Ventures, Cedar Mundi Partners, Henkel Ventures

UAE currency: the story behind the money in your pockets
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Updated: June 27, 2022, 4:00 PM