Turkey’s expansionist energy policy in the Eastern Mediterranean is underpinned by a maritime doctrine that has raised the spectre of naval confrontation with Nato allies Greece and France.
The Blue Homeland, or Mavi Vatan, philosophy supports Turkey’s search for gas reserves across a swathe of the Mediterranean and has seen warships head to the region this week.
Developed in 2006 by Admiral Cem Gurdeniz, who was then head of Turkish naval planning, the strategy has been interpreted as the maritime component of Ankara’s drive for greater independence in its dealings with the world.
“Turkey’s defence policy had always been based on our staunch support for the Atlantic bloc,” said Adm Gurdeniz. “It was based on whatever Nato decided but this meant we didn’t develop our own strategies. After the Cold War, Turkey wanted to create a new geopolitical situation because the world wasn’t black and white anymore, it was a Picasso painting.”
The high command veteran was among hundreds of military officers prosecuted in the "Sledgehammer" trials of 2012 and subsequently released as the prosecutions were quashed by higher courts.
He now regularly appears on state television championing the policy he devised almost 15 years ago. “What we are seeing now is the biggest expression of the Blue Homeland theory because it is the first time Turkey as a state is exerting its rights on its continental shelf.”
The latest confrontation was sparked when Turkey sent the Oruc Reis research vessel, escorted by warships, into a region between Cyprus and the Greek island of Crete to explore for gas – an area Greece claims as part of its continental shelf and maritime economic zone.
While Ankara disputes Greek claims, the stand-off has seen the Greek navy, supported by French warships, shadowing the Turkish exploration mission.
“I’m concerned about a possible skirmish because when you have so many naval assets in a narrow area, you could end up with a very unpleasant situation between allies,” former Turkish ambassador Mithat Rende said.
“Nato should be more active in trying to defuse the situation and avoiding an accident that could lead to an undesired conflict which would destroy Nato.”
On Friday, EU foreign ministers were due to meet in an emergency session amid the threat of sanctions against Ankara.
The discovery of natural gas reserves in the Mediterranean has seen historic rivals Turkey and Greece assert competing claims.
Both have struck maritime deals to reinforce their ambitions over parts of the Mediterranean basin – Turkey with Libya’s Tripoli-based government and Greece with Egypt.
In addition, there are the claims of the internationally-recognised Greek government of Cyprus. Turkey argues it is defending not just its own energy rights but also those of Turkish Cypriots, whose government is acknowledged by Ankara alone.
Felicity G Attard, an international maritime law specialist at the University of Malta, said maritime territory “cannot be based on a unilaterally imposed boundary, but must be established in an agreement and should represent an equitable solution.”
Economic zones can also be claimed by islands, making the dispute “extremely difficult, particularly because of the location of the islands and the longstanding rivalry between the two states,” she said. Disagreement over Cyprus “further complicated” the issue.
Mr Rende said Turkey’s position was that the Greek Cypriot administration “does not represent in law or fact Turkish Cypriots or the island as a whole and it follows that they’re not entitled to conclude any agreement on behalf of Turkish Cypriots.”
Turkish complaints also focus on the Greek island of Kastellorizo, known as Meis in Turkish, which lies just 2 kilometres off Turkey’s southern coast.
“Greece claims 40,000 square kilometres of maritime jurisdiction area due to this tiny island,” tweeted Cagatay Erciyes, a senior Turkish foreign ministry official.
Turkey has sought a dramatic expansion of its blue water naval presence and has been linked to planned naval bases in northern Cyprus and Libya. Plans for a base on Sudan’s Red Sea coast were only abandoned with the change of regime in the country last year.
Michael Tanchum, a senior fellow at the Austrian Institute for European and Security Policy, said the discovery of gas had seen the Eastern Mediterranean emerge as a “nexus of international flashpoints”.
Turkey’s efforts to extend its influence in Africa and the Red Sea region brought it into conflict with both France and Egypt, he added.
Blue Homeland reflects official frustration at the situation under international law and a growing internal belief that foreign powers are happy to “imprison” Turkey with an unfair settlement, according to Adm Gurdeniz.
“Overall, we’re talking about 150,000 square kilometres of Turkey’s continental shelf being stolen," he said. “Turkey’s new geopolitical realities are changing and our friends and allies should understand this. We have to find a middle way.”
UAE currency: the story behind the money in your pockets
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THE DRAFT
The final phase of player recruitment for the T10 League has taken place, with UAE and Indian players being drafted to each of the eight teams.
Bengal Tigers
UAE players: Chirag Suri, Mohammed Usman
Indian: Zaheer Khan
Karachians
UAE players: Ahmed Raza, Ghulam Shabber
Indian: Pravin Tambe
Kerala Kings
UAE players: Mohammed Naveed, Abdul Shakoor
Indian: RS Sodhi
Maratha Arabians
UAE players: Zahoor Khan, Amir Hayat
Indian: S Badrinath
Northern Warriors
UAE players: Imran Haider, Rahul Bhatia
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Pakhtoons
UAE players: Hafiz Kaleem, Sheer Walli
Indian: RP Singh
Punjabi Legends
UAE players: Shaiman Anwar, Sandy Singh
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Rajputs
UAE players: Rohan Mustafa, Ashfaq Ahmed
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Mane points for safe home colouring
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PRESIDENTS CUP
Draw for Presidents Cup fourball matches on Thursday (Internationals first mention). All times UAE:
02.32am (Thursday): Marc Leishman/Joaquin Niemann v Tiger Woods/Justin Thomas
02.47am (Thursday): Adam Hadwin/Im Sung-jae v Xander Schauffele/Patrick Cantlay
03.02am (Thursday): Adam Scott/An Byeong-hun v Bryson DeChambeau/Tony Finau
03.17am (Thursday): Hideki Matsuyama/CT Pan v Webb Simpson/Patrick Reed
03.32am (Thursday): Abraham Ancer/Louis Oosthuizen v Dustin Johnson/Gary Woodland
Ain Dubai in numbers
126: The length in metres of the legs supporting the structure
1 football pitch: The length of each permanent spoke is longer than a professional soccer pitch
16 A380 Airbuses: The equivalent weight of the wheel rim.
9,000 tonnes: The amount of steel used to construct the project.
5 tonnes: The weight of each permanent spoke that is holding the wheel rim in place
192: The amount of cable wires used to create the wheel. They measure a distance of 2,4000km in total, the equivalent of the distance between Dubai and Cairo.
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.”
The biog
Mission to Seafarers is one of the largest port-based welfare operators in the world.
It provided services to around 200 ports across 50 countries.
They also provide port chaplains to help them deliver professional welfare services.
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5