Vladimir Putin used his state-of-the-nation speech on Thursday to warn the United States that Russia has new high-technology nuclear weapons that he said could overcome any defences.
“Efforts to contain Russia have failed, face it,” the Russian president said in a nearly two-hour address he illustrated with video clips of the new arms, which included underwater drones, intercontinental missiles and a hypersonic system he said “heads for its target like a meteorite”.
The unusual display of military might was the most dramatic element of Mr Putin's speech, which started with pledges to deliver a “decisive breakthrough” to boost living standards and raise spending on health and infrastructure. Mr Putin used the annual address to lay out priorities for the fourth presidential term he is expected to win easily in elections this month.
But the toughest language was aimed at the US, with which Russia has increasingly come into confrontation in the Middle East. Russia's 2015 military intervention in Syria succeeded in shoring up its ally President Bashar Al Assad against rebel forces backed by the US and its allies, while strengthening its presence in the region.
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Mr Putin said Russia had long warned Washington not to go ahead with anti-missile systems that Moscow feared could erode its nuclear deterrent. “Nobody listened to us. Listen now,” he said, to a loud ovation from the crowd of legislators, officials and dignitaries.
“We’re not threatening anyone,” Mr Putin said of the new weapons. “Russia’s growing military might is a reliable guarantee of peace on our planet because it ensures the strategic balance in the world.”
He singled out a new US nuclear-strategy document as threatening to lower the threshold for using the weapons. He warned that any use of nuclear arms against Russia or its allies would meet a “immediate response”.
While past addresses had been staid affairs held in the Kremlin’s ornate Georgievsky Hall, this year the event was moved to the Manezh exhibition venue nearby to allow Mr Putin to show the videos and animated charts on a giant screen behind him. The new weapons were shown in computerised animations evading defences as they headed toward targets, sometimes appearing to be in North America.
Among the systems was a nuclear-powered cruise missile that Mr Putin said had “unlimited range” and could dodge defences. Underwater drones launched from submarines were shown striking ships and coastal cities, while a new hypersonic missile called “dagger” destroyed a military installation and a new laser weapon was shown preparing for operation. As he catalogued the systems - all of which he said had been developed since the collapse of the Soviet Union - he announced an online contest to name some of the newer ones.
The address is his first major policy statement since he formally kicked off his campaign for the March 18 presidential election. Mr Putin, 65, is all but certain to win re-election for a fourth and likely final term to extend his rule to 2024. With factions jostling for advantage over the succession, his biggest challenge will be to build a team and a system capable of sustaining Putinism after he leaves office.
While his approval ratings have remained consistently above 80 per cent since the 2014 annexation of Crimea, public discontent is rising amid weak economic growth that has followed the longest recession this century. Many of his promises from his last campaign have remained unfulfilled amid the weak economic performance. Deepening tensions with the West threaten to further isolate the Kremlin.
Mr Putin addressed domestic issues head on in his speech, pledging to cut the 20-million-strong ranks of Russia’s poor by half by the middle of the next decade and boost incomes across the country. He called for raising spending on roads, health care, pensions, and efforts to reverse the decline in Russia’s population. He also called for making “hard decisions” on long-overdue reforms, but did not spell them out.
“We need to make a decisive breakthrough in the prosperity of our citizens,” he said. “Falling behind is the main threat, that’s our enemy,” he added, targeting a 50 per cent increase in per capita gross domestic product by the middle of the next decade.
Mr Putin had cut back his public campaign appearances in the last two weeks as a result of what the Kremlin said was a cold. On Thursday, he sounded hoarse and coughed as he spoke. He is expected to appear at a rally of supporters in Moscow on Saturday.
11 cabbie-recommended restaurants and dishes to try in Abu Dhabi
Iqbal Restaurant behind Wendy’s on Hamdan Street for the chicken karahi (Dh14)
Pathemari in Navy Gate for prawn biryani (from Dh12 to Dh35)
Abu Al Nasar near Abu Dhabi Mall, for biryani (from Dh12 to Dh20)
Bonna Annee at Navy Gate for Ethiopian food (the Bonna Annee special costs Dh42 and comes with a mix of six house stews – key wet, minchet abesh, kekel, meser be sega, tibs fir fir and shiro).
Al Habasha in Tanker Mai for Ethiopian food (tibs, a hearty stew with meat, is a popular dish; here it costs Dh36.75 for lamb and beef versions)
Himalayan Restaurant in Mussaffa for Nepalese (the momos and chowmein noodles are best-selling items, and go for between Dh14 and Dh20)
Makalu in Mussaffa for Nepalese (get the chicken curry or chicken fry for Dh11)
Al Shaheen Cafeteria near Guardian Towers for a quick morning bite, especially the egg sandwich in paratha (Dh3.50)
Pinky Food Restaurant in Tanker Mai for tilapia
Tasty Zone for Nepalese-style noodles (Dh15)
Ibrahimi for Pakistani food (a quarter chicken tikka with roti costs Dh16)
UAE currency: the story behind the money in your pockets
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The five pillars of Islam
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Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
Profile of VoucherSkout
Date of launch: November 2016
Founder: David Tobias
Based: Jumeirah Lake Towers
Sector: Technology
Size: 18 employees
Stage: Embarking on a Series A round to raise $5 million in the first quarter of 2019 with a 20 per cent stake
Investors: Seed round was self-funded with “millions of dollars”
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates
Company%20profile
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At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
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.”