UAE Minister of State for Foreign Affairs Anwar Gargash said that the GCC was facing a 'severe crisis'. REUTERS/Faisal Al Nasser
UAE Minister of State for Foreign Affairs Anwar Gargash said that the GCC was facing a 'severe crisis'. REUTERS/Faisal Al Nasser

Gargash says Qatar’s behaviour threatens stability in the Gulf



Abu Dhabi // The GCC is going through a severe crisis that poses a grave danger to security and stability in the Gulf, the UAE’s Minister of State for Foreign Affairs said on Sunday.

Dr Anwar Gargash’s comments come after a split within the Arab Gulf countries once again erupted over Qatar’s relationship with Islamist groups in the region and pressure on Doha to fall in line on confronting and containing Tehran.

“Warding off the discord will require a change in behaviour ... and a regain in credibility,” Dr Gargash tweeted, in a clear reference to Qatar.

“Solving a crisis between a brother and his siblings is achieved through honesty and commitment to pledges and intentions,” he said.

The minister added that “stability lies in unity” and, at a time of so many regional crises and threats, “patience and tolerance have their limits.”

Saudi Arabia and the UAE were outraged after Qatar’s state media published comments from the emir Sheikh Tamim bin Hamad Al Thani critical of US and GCC policy towards Iran.

Qatar said the remarks, published late on Tuesday, were fake and that the state news agency that ran them had been hacked.

Facing the prospect of mounting pressure by the US and its regional partners, Iranian officials are seeking to capitalise on the fissures among the Arab Gulf states.

Newly re-elected president Hassan Rouhani spoke with Qatar’s emir on Friday and the Iranian supreme leader Ayatollah Ali Khamenei marked the advent of Ramadan by launching a rhetorical attack on Saudi Arabia, saying that the kingdom was being “milked” by Donald Trump.

The virulent comments come after the US president and King Salman agreed to arms deals worth up to $110 billion (Dh403bn) at a summit on May 20 in Riyadh. The kingdom also pledged to invest $20 billion in upgrading and building new US infrastructure, a signature domestic goal for Mr Trump.

In another sign of deteriorating relations with Qatar, descendants of the founding father of Wahhabi Islam sought to distance themselves from Qatar’s ruling family.

Some 200 descendants of Ibn Abd Al Wahhab demanded the renaming of a Qatari mosque named after the 18th-century cleric, Saudi Arabia's Okaz newspaper reported.

Qatar’s state mosque is known as the Sheikh Mohammed ibn Abd Al Wahhab mosque.

“We, therefore, demand that the name of the mosque be changed for it does not carry its true Salafi path,” the statement said.

In 2014, Riyadh and Abu Dhabi withdrew their ambassadors from Doha over Qatar’s support for Islamist groups, but the diplomatic spat ended – or became dormant – less than a year later with the ascension of King Salman.

The Saudi monarch reportedly prioritised a united front among GCC and other Arab allies against Iran.

But with the dramatic reset in the tenor of relations with Washington, countering Islamist groups, realigning with the new US administration on Iran, and assisting Washington in its latest bid to broker a Israel-Palestine peace deal are now priorities for both Saudi and the UAE.

That leaves little room among the three countries for ambiguity in Doha’s positions.

But a complete falling in line seems unlikely, as its ties to Islamist groups like the Muslim Brotherhood and Hamas is key to Doha’s strategic posture.

It has a major shared interest with Iran in the world’s largest gasfield and while wary of Tehran, and even engaged in proxy war with it in Syria, does not want to risk a serious direct confrontation.

Other GCC countries will also be watching warily. Kuwait’s foreign minister met with Sheikh Tamim over the weekend to try to defuse the situation through dialogue.

tkhan@thenational.ae

* With reporting from Reuters

The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

Best piece of advice to someone looking for a career at Google?

If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

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.”

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home. 

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Founders: Iheb Triki and Mohamed Ali Abid
 
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Sector: Water technology 
 
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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.

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Ruwais timeline

1971 Abu Dhabi National Oil Company established

1980 Ruwais Housing Complex built, located 10 kilometres away from industrial plants

1982 120,000 bpd capacity Ruwais refinery complex officially inaugurated by the founder of the UAE Sheikh Zayed

1984 Second phase of Ruwais Housing Complex built. Today the 7,000-unit complex houses some 24,000 people.  

1985 The refinery is expanded with the commissioning of a 27,000 b/d hydro cracker complex

2009 Plans announced to build $1.2 billion fertilizer plant in Ruwais, producing urea

2010 Adnoc awards $10bn contracts for expansion of Ruwais refinery, to double capacity from 415,000 bpd

2014 Ruwais 261-outlet shopping mall opens

2014 Production starts at newly expanded Ruwais refinery, providing jet fuel and diesel and allowing the UAE to be self-sufficient for petrol supplies

2014 Etihad Rail begins transportation of sulphur from Shah and Habshan to Ruwais for export

2017 Aldar Academies to operate Adnoc’s schools including in Ruwais from September. Eight schools operate in total within the housing complex.

2018 Adnoc announces plans to invest $3.1 billion on upgrading its Ruwais refinery 

2018 NMC Healthcare selected to manage operations of Ruwais Hospital

2018 Adnoc announces new downstream strategy at event in Abu Dhabi on May 13

Source: The National

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Water waste

In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.

Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.

A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.

The Emirates is the world’s third largest per capita water consumer after the US and Canada.

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

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Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails

Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies

Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments

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Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions