During a landmark visit to Greece on Thursday, Turkish President Recep Tayyip Erdogan and Greek Prime Minister Kyriakos Mitsotakis agreed to renew their relations and establish a roadmap to closer ties.
The two countries, Nato allies but historical foes, agreed to focus on pursuing good relations, keep open channels of communication and seek military confidence-building measures to eliminate sources of tension.
They also agreed to boost trade and work on problems that have kept them apart, notably in the Aegean Sea.
"There is no issue between us that is unsolvable, so long as we focus on the big picture and don't end up being like those who cross the sea and drown in the river," Mr Erdogan said after meeting Mr Mitsotakis in Athens.
"We want to turn the Aegean into a sea of peace. Through the joint steps we will take as Turkey and Greece, we want to be an example to the world."
After customary arguments over recent years, relations between the neighbours thawed markedly after Greece swiftly sent aid after a devastating earthquake hit Turkey in February.
Thursday's summit was a far cry from Mr Erdogan's last visit, in 2017, where both sides listed historical grievances stretching back to the last days of the Ottoman Empire more than a century ago.
The meeting went on longer than anticipated, and Mr Mitsotakis addressed Mr Erdogan as "Dear Tayyip".
Mr Erdogan said he expected to receive the Greek leader in Ankara.
The Nato allies want to raise bilateral trade to $10 billion from $5 billion, while Mr Erdogan said both countries could benefit from annual, high-level meetings.
"Geography and history have dictated that we live in the same neighbourhood," Mr Mitsotakis said.
"But I feel a historical responsibility to utilise this opportunity to bring the two states side by side, just as our borders are."
Greece and Turkey have long been at odds over issues including where their continental shelves start and end, energy resources, flights over the Aegean Sea, and the partitioned island of Cyprus.
But both countries want to demonstrate that they are willing to repair their relations.
Turkey has been seeking EU membership for more than two decades.
Since being re-elected in May in a tight vote amid an economic crisis, Mr Erdogan has said Turkey remains committed to improving relations with its western partners and allies.
Ankara has been trying to draw foreign investors back, while mending fences with regional and western states, an issue that has long affected the Turkish economy.
After a debt crisis that rocked the euro currency zone, Greece aims to regain its footing and appear as a pillar of eastern Mediterranean stability in a geopolitical environment changing due to the war in Ukraine and the Gaza conflict.
On Thursday, Greece re-established an automatic visa system for Turkish nationals to visit 10 of its islands.
Mr Mitsotakis said meetings would continue and another step in the relaunched bilateral dialogue could be coming closer to a deal to demarcate continental shelves and related economic exclusion zones when conditions allow.
An offshore EEZ could be a precursor to exploration of oil or gas.
Further east, towards Israel, the eastern Mediterranean basin has yielded some of the world's largest natural gas finds in recent years.
The two countries came to the brink of war in the 1990s, and in recent years have argued over energy resources in the Eastern Mediterranean, defence issues, migration and the acquisition of fighter jets, which interrupted co-operation talks.
But "earthquake diplomacy" appears to have turned the tide, again, as it did in similar circumstances in 1999.
Striking an upbeat tone, Mr Erdogan said Turkey and Greece should focus on the positives, and less on the negatives.
"It will be much more beneficial for the future if we look at things from a glass half-full perspective," Mr Erdogan told Greek President Katerina Sakellaropoulou.
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HIV on the rise in the region
A 2019 United Nations special analysis on Aids reveals 37 per cent of new HIV infections in the Mena region are from people injecting drugs.
New HIV infections have also risen by 29 per cent in western Europe and Asia, and by 7 per cent in Latin America, but declined elsewhere.
Egypt has shown the highest increase in recorded cases of HIV since 2010, up by 196 per cent.
Access to HIV testing, treatment and care in the region is well below the global average.
Few statistics have been published on the number of cases in the UAE, although a UNAIDS report said 1.5 per cent of the prison population has the virus.
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.”
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
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