Turkish President Recep Tayyip Erdogan takes part in a teleconference with European leaders, in Istanbul, on Tuesday, March 17, 2020. Presidential Press Service / AP
Turkish President Recep Tayyip Erdogan takes part in a teleconference with European leaders, in Istanbul, on Tuesday, March 17, 2020. Presidential Press Service / AP
Turkish President Recep Tayyip Erdogan takes part in a teleconference with European leaders, in Istanbul, on Tuesday, March 17, 2020. Presidential Press Service / AP
Turkish President Recep Tayyip Erdogan takes part in a teleconference with European leaders, in Istanbul, on Tuesday, March 17, 2020. Presidential Press Service / AP

Erdogan discusses Syria and migrant crisis with European leaders


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The leaders of Britain, France, Germany and Turkey on Tuesday discussed the European migration crisis and the situation in Syria.

The call between the four nations came after a Turkish decision last month to reopen its border for refugees trying to reach Europe.

That led to about 13,000 migrants becoming stuck on the border with Greece and Bulgaria in Turkey’s Edirne province, the UN estimates. Many of the refugees are Syrian.

Greece has taken a hard line on the migrants, using tear gas to stop them crossing the border. Athens also suspended asylum applications for a month.

“The leaders welcomed the recent ceasefire in Idlib,” a Downing Street spokesman said.

“They also condemned the regime and its backers for causing the ongoing humanitarian crisis and the mass displacement of people from and within Syria.”

Clarifications were requested by the European countries from Turkish President Recep Tayyip Erdogan on migration, Nato and EU relations “to achieve clearer and peaceful relations”, the French presidential office said.

The leaders originally planned to meet in Istanbul but instead spoke by phone because of the rapid spread of the coronavirus.

In 2016, the EU tried to end the surge of refugees entering the bloc by promising Turkey €6 billion to help house the migrants there.

Only about €3.2bn of that sum has been paid.

Turkey hosts 4 million refugees, most of whom are Syrian.

Ankara is demanding more financial assistance from the EU but critics say Mr Erdogan is trying to politicise migration to gain more concessions from Brussels.

On Sunday, Syria’s civil war, which has displaced 11 million people and killed more than 384,000, entered its 10th year.

This month, Mr Erdogan visited Moscow to try to make progress on Syria, but left only with a limited ceasefire, which was quickly broken.

A few days later, on March 9, he met EU leaders to discuss his demands for extra financial support but no agreement was reached.

During Tuesday's call, the four leaders also discussed the coronavirus.
After the call, Mrs Merkel said people who were not EU citizens could no longer enter the bloc for at least 30 days, in a bid to contain its spread.

Germany has been badly affected by the pandemic, which has infected almost 10,000 people there and killed 26.

As of Wednesday, it had infected 98 people in Turkey, one of whom died.

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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.”

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

The specs: 2018 Alfa Romeo Stelvio

Price, base: Dh198,300
Engine: 2.0L in-line four-cylinder
Transmission: Eight-speed automatic
Power: 280hp @ 5,250rpm
Torque: 400Nm @ 2,250rpm
Fuel economy, combined: 7L / 100km

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