Turkish prime minister Recep Tayyip Erdogan, right, and Russian president Vladimir Putin at a news conference in Istanbul.
Turkish prime minister Recep Tayyip Erdogan, right, and Russian president Vladimir Putin at a news conference in Istanbul.
Turkish prime minister Recep Tayyip Erdogan, right, and Russian president Vladimir Putin at a news conference in Istanbul.
Turkish prime minister Recep Tayyip Erdogan, right, and Russian president Vladimir Putin at a news conference in Istanbul.

Turkey may look East as EU stalemate continues


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ISTANBUL // Frustrated with resistance within the European Union to Turkey's accession, the prime minister, Recep Tayyip Erdogan, has asked the Russian president, Vladimir Putin, for help in getting the country admitted to the Shanghai Five, an organisation of Asian powers that includes China and Russia.

Mr Erdogan's statements, made in a television interview last Friday, appeared to signal a strategic shift for a country that is a long-standing member of Nato, and that has been seeking to join the EU and its predecessors for half a century.

Several western diplomats and analysts said the prime minister's remarks should be seen as a sign of the depth of Turkey's frustration with the EU, rather than an imminent fundamental policy shift. They said Mr Erdogan may have been trying to scare the EU into a more welcoming attitude towards his country.

"He was sending a message to the EU that said: 'We don't need you'," said Beril Dedeoglu, a professor of political science at Istanbul's Galatasaray University and one of the group of journalists and intellectuals who interviewed the prime minister.

In recent years, especially after Ankara voted against Iran sanctions in the UN Security Council in 2010, western governments expressed concern that Turkey, led by Mr Erdogan's Justice and Development Party (AKP), a party with roots in political Islam, may end its traditional western outlook and turn east. In that context, Mr Erdogan's statement "exploded like a bombshell", Prof Dedeoglu said yesterday.

During the interview on Kanal 24, a Turkish news channel, Mr Erdogan said Turkey was not about to "forget about the EU accession process" by itself, but that the EU was trying to discourage Turkey from pursuing its membership attempt.

"I told Mr Putin the other day: take us into the Shanghai Five," Mr Erdogan said. "Take us into the Shanghai Five, and we will say goodbye to the EU, we will leave them."

He was referring to a regional organisation originally grouping China, Russia, Kazakhstan, Kyrgyzstan and Tajikistan. The organisation was renamed Shanghai Cooperation Organisation after Uzbekistan joined in 2001. Turkey became a dialogue partner of the organisation last year.

Joining the Shanghai Five would bring Turkey into close military and economic cooperation with China and Russia. Abandoning the EU process would mean giving up a long-held principle of Turkish foreign policy that has the aim of making the country a full member of the club of European democracies.

Turkey's EU accession talks started in 2005 but have made little progress, partly due to the unresolved Cyprus conflict, but also because of the reluctance of several key members to embrace the Muslim Turks as new members.

"As the prime minister of a nation of 75 million, you start looking elsewhere if that goes on like that in a negative fashion, if you want it or not," Mr Erdogan said.

He also said the reason for the EU's reluctance was because Turkey was a Muslim country, adding that some EU ministers had said so openly. "What's the use of being fobbed off like this?" he asked.

"The Shanghai Five are better, they are much stronger," he said.

A Turkish diplomat underlined that the prime minister had said Turkey was not giving up on the EU. But there is no doubt about Turkey's frustration with the lack of progress in Brussels, he added.

In Washington, the US state department reacted cautiously to Mr Erdogan's statements.

Asked about the possibility of Turkey joining the Shanghai Five, Victoria Nuland, a department spokeswoman, said such a development "would be interesting, given the fact that Turkey's also a Nato member. We'll have to see how that goes".

A European diplomat in Ankara played down the prime minister's interview. "The Shanghai Five is not an organisation that would be remotely as important to Turkey as the EU is," he said. "If the Turks think they can scare people in the EU with this, they are mistaken."

But Prof Dedeoglu said the remarks should be taken seriously. Even if the government did not have any immediate plans to turn away from the EU, it was significant that the prime minister was talking about it openly, because this showed the level of dissatisfaction with the EU in Turkey, she said.

According to a poll conducted last month for the Centre for Economics and Foreign Policy Studies, a think tank in Istanbul, two Tiurkish voters out of three feel the country should abandon its goal of EU membership.

Support for EU membership in Turkey, which stood at more than 70 per cent in 2004, has decreased significantly over recent years, as voters and politicians expressed disappointment with the EU's reluctance to take their country in.

At the same time, Turkey's growing economic power has nurtured a feeling of strength and independence that has pushed the EU issue, the most important political subject in Ankara in the first years of the AKP era from 2002 onwards, into the background.

Prof Dedeoglu said those factors had given Mr Erdogan the feeling that he could talk about joining the Shanghai Five without angering important sections of the electorate before local, parliamentary and presidential elections next year and in 2015.

"He was relaxed when he talked about it, because there is a mood in the public at large that says we don't need the EU," she said.

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RESULTS

1.30pm Handicap (PA) Dh 50,000 (Dirt) 1,400m

Winner AF Almomayaz, Hugo Lebouc (jockey), Ali Rashid Al Raihe (trainer)

2pm Handicap (TB) Dh 84,000 (D) 1,400m

Winner Karaginsky, Tadhg O’Shea, Satish Seemar.

2.30pm Maiden (TB) Dh 60,000 (D) 1,200m

Winner Sadeedd, Ryan Curatolo, Nicholas Bachalard.

3pm Conditions (TB) Dh 100,000 (D) 1,950m

Winner Blue Sovereign, Clement Lecoeuvre, Erwan Charpy.

3.30pm Handicap (TB) Dh 76,000 (D) 1,800m

Winner Tailor’s Row, Royston Ffrench, Salem bin Ghadayer.

4pm Maiden (TB) Dh 60,000 (D) 1,600m

Winner Bladesmith, Tadhg O’Shea, Satish Seemar.

4.30pm Handicap (TB) Dh 68,000 (D) 1,000m

Winner Shanaghai City, Fabrice Veron, Rashed Bouresly.

MATCH INFO

England 19 (Try: Tuilagi; Cons: Farrell; Pens: Ford (4)

New Zealand 7 (Try: Savea; Con: Mo'unga)

Director: Shady Ali
Cast: Boumi Fouad , Mohamed Tharout and Hisham Ismael
Rating: 3/5

Stats at a glance:

Cost: 1.05 billion pounds (Dh 4.8 billion)

Number in service: 6

Complement 191 (space for up to 285)

Top speed: over 32 knots

Range: Over 7,000 nautical miles

Length 152.4 m

Displacement: 8,700 tonnes

Beam:   21.2 m

Draught: 7.4 m

Racecard:
2.30pm: Hamdan bin Rashid Al Maktoun Emirates Breeders Society Challenge; Conditions (PA); Dh40,000; 1,600m
3pm: Handicap; Dh80,000; 1,800m
3.30pm: Jebel Ali Mile Prep Rated Conditions; Dh110,000; 1,600m
4pm: Handicap; Dh95,000; 1,950m
4.30pm: Maiden; Dh65,000; 1,400m
5pm: Handicap; Dh85,000; 1,200m

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

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Courtesy: Crystal Intelligence

List of UAE medal winners

Gold
Faisal Al Ketbi (Open weight and 94kg)
Talib Al Kirbi (69kg)
Omar Al Fadhli (56kg)

Silver
Zayed Al Kaabi (94kg)
Khalfan Belhol (85kg)
Zayed Al Mansoori (62kg)
Mouza Al Shamsi (49kg women)

Bronze
Yahia Mansour Al Hammadi (Open and 94kg)
Saood Al Hammadi (77kg)
Said Al Mazroui (62kg)
Obaid Al Nuaimi (56kg)
Bashayer Al Matrooshi (62kg women)
Reem Abdulkareem (45kg women)

Know before you go
  • Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
  • If you’re driving, make sure your insurance covers Oman.
  • By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
  • Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
  • Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

 

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UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

Spider-Man: No Way Home

Director: Jon Watts

Stars: Tom Holland, Zendaya, Jacob Batalon 

Rating:*****

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.”

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West Indies: Holder (c), Ambris, Bishoo, Brathwaite, Chase, Dowrich (wk), Gabriel, Hamilton, Hetmyer, Hope, Lewis, Paul, Powell, Roach, Warrican, Joseph