Greece extends territorial waters amid eastern Mediterranean standoff


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Greece has announced an extension of its territorial waters to the west in a major shift of policy amid is standoff with Turkey in the eastern Mediterranean.

Greek Prime Minister Kyriakos Mitsotakis said on Wednesday his country was planning to exercise its legal right to extend its territorial waters along its western coastline from six to 12 nautical miles.

The decision will not directly impact the dispute with Turkey but Mr Mitsotakis said the change marked a major move away from decades of “passive” foreign policy.

Tensions between Athens and Ankara have escalated close to breaking point in recent weeks over access to Economic Exclusive Zones (EEZ) around Greek islands in the Eastern Mediterranean.

Greece and the EU have said Turkey's exploration operations in the area are illegal. Turkey has said it should have access to waters on the islands because they lie on its continental shelf.

The move from Athens comes during a flurry of diplomatic activity in attempts to de-escalate tensions between the two nations.

Speaking ahead of an EU defence ministers’ meeting, Nato Secretary-General Jens Stoltenberg called for dialogue between the two allies.

“We are concerned about the situation in the eastern Mediterranean. What we need is de-escalation, is dialogue,” he said.

“Turkey and Greece have both been important Nato allies for many years. And we need to find a way to resolve the situation in the eastern Mediterranean based on the spirit of Allied solidarity and international law ,” the Nato chief added.

EU foreign ministers are to meet to discuss their response to the crisis on Thursday.

France on Wednesday said military exercises in the eastern Mediterranean along with Greece, Italy and Cyprus had begun and were aimed at promoting respect of international law.

Defence Minister Florence Parly said on Twitter that three Rafale jets, a frigate and a helicopter would take part for France in the exercises.

Turkish president Recep Erdogan continued to rail against Greece. "Turkey will take what is its right in the Mediterranean, in the Aegean and in the Black Sea," Erdogan said.

"Just as we have no eyes over anyone's territory, sovereignty and interests, we will never compromise on what belongs to us. We are determined to do whatever is necessary in political, economic and military terms."

"We invite our interlocutors to get their act together and to avoid mistakes that will lead to their ruin," he added.

On Wednesday Germany’s foreign minister has called on Greece and Turkey to step back from the brink in the eastern Mediterranean

Heiko Maas travelled between Turkey and Greece, to bolster Germany's efforts at mediation between the two countries.

"What we really need is a willingness for dialogue," Mr Maas said during a joint news conference with his Turkish counterpart, Mevlut Cavusoglu, on Tuesday. "A further escalation is not in the interest of Greece, not in the interest of the EU and also not in the interest of Turkey.

"The situation is very risky," Mr Maas said. "Whoever moves closer and closer to the abyss can at some point fall down. That's a development which we want to avoid.

"Nobody wants to solve this conflict militarily, which would be absolute insanity,” he said. “But the willingness for dialogue is there.”

Greece, France and Cyprus have called for sanctions against Ankara over its actions in the eastern Mediterranean.

The arrival of the Turkish research vessel the Oruc Reis prompted a build-up of dozens of naval vessels and aircraft in the area, drawing in other nations such as France.

After their meetings with Mr Maas, both Mr Cavusoglu and Greek Foreign Minister Nikos Denidias said they were open to discussions.

Turkey, however, continued to hit out, blaming Greece for the break-up of previous efforts for a dialogue earlier this month.

"Turkey is ready to hold talks with everyone for the fair sharing [of resources]," Mr Cavusoglu said. "Turkey has always supported dialogue with Greece and has been in favour of resolving problems through diplomacy, not conflict,” he said.

"We are not the ones that increase tensions. Greece must forego its spoiled acts. It should not allow itself to be egged on by other countries and put itself into risk. If you take wrongful steps... we would do the necessary without any hesitation."

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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.

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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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What: International friendly

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Where: Rugby Park, Dubai Sports City

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