King Abdullah of Jordan and US president Barack Obama shake hands at the Oval Office on December 5, 2014. Larry Downing / Reuters
King Abdullah of Jordan and US president Barack Obama shake hands at the Oval Office on December 5, 2014. Larry Downing / Reuters

Jordan’s king calls for stronger Arab stance against ISIL



Taimur Khan

Foreign Correspondent

WASHINGTON // King Abdullah II urged Arab leaders to take a stronger stance against ISIL, saying the war against the militants was a “fight between good and evil”.

Jordan’s king made the call on a US news programme before meeting Barack Obama at the White House to discuss the fight against ISIL and other issues in the region, including how to find a political solution to the Syrian civil war, the influx of Syrian refugees, escalating unrest in Jerusalem and the status of Iran nuclear negotiations.

Mr Obama said the US would increase bilateral aid to $1 billion (Dh3.67bn) annually and provide an additional loan guarantee, which are subject to Congresional approval.

The increase, which would run through the 2017 fiscal year, “is intended to support Jordan as it faces increasing challenges from regional unrest, a huge refugee presence and high energy costs due to expensive foreign energy imports”, a National Security Council spokeswoman said.

Since 2010, Jordan officially received $660 million annually, but this year is already set to get more than $1 billion in US support as money from separate funds is added to the base annual sum.

The kingdom is a “small, resource-poor country that consistently steps up” to fulfill its regional responsibilities, Mr Obama said after the Oval office talks.

He added that the US-led coalition was making “slow and steady progress” against ISIL, “a long-term and extremely complex challenge”.

King Abdullah said in his earlier interview that he was consulting other Arab leaders about more effective ways to confront the extremist militants, who have taken over large areas of Syria and Iraq – countries that share a border with Jordan.

“Nations in the Arab and Islamic world have to stand up and say, you know, ‘We’re against this,’ and explain to our people, ‘There’s a right and a wrong of this.’

“And people have to make a decision. This is our war. This is a war inside of Islam. So we have to own up to it. We have to take the lead. And we have to start fighting back.

“It’s clearly a fight between good and evil,” he said on CBS This Morning.

Jordan is one of five Arab nations, including the UAE, that have participated in US-led airstrikes against ISIL in Syria.

The countries’ militaries and intelligence services have very close ties – Washington granted Jordan major non-Nato ally status in 1996 – and the US provides $360 million annually in military aid, training and weapons systems to Jordan. Much of this aid focuses on border security and counter-terrorism, and Jordan is home to a US-funded special operations training base.

“Our troops are very proud to be working together to combat ISIL in Syria and Iraq,” King Abdullah said after meeting Mr Obama. “We have a long-term commitment to bring a long-term solution to the region.”

Despite the kingdom’s role in coalition strikes and intelligence sharing, and reports that Jordanian special forces have been involved in action against ISIL, King Abdullah has not sought to publicise Jordan’s military role or to expand it.

Fear of triggering attacks by the group and also managing public opinion domestically are factors in Amman’s approach. Many Jordanians across the political spectrum oppose more robust involvement, either because of Islamist sympathies or out of fear of a backlash.

But King Abdullah’s statements suggest that he may be prepared to do more, especially as frustration builds among regional US allies that the airstrikes in Syria are only empowering Bashar Al Assad to step up attacks on Syrian rebels supported by the coalition.

Mr Obama’s aid pledge was likely at the top of King Abdullah’s list for concrete results from the talks. Jordan’s economy is under severe strain, and the country relies almost entirely on external financial aid from allies in the Gulf and the US, and lending agencies, to keep it afloat.

Jordan closed its borders to Syrian refugees last month as the more than 600,000 Syrian refugees strained already thin resources and has led to social and political disquiet.

Mr Obama and King Abdullah also discussed their efforts to reduce tensions between Israel and Palestine. After the talks, Mr Obama emphasised the need for Palestinians to have a their own state.

Jordan’s UN envoy said on Tuesday she will be trying to get the UN Security Council to agree on a resolution before the end of December that would press for a two-state solution to the Israeli-Palestinian conflict.

The push for Security Council action follows the failure of US-brokered peace talks between Israel and the Palestinians led by US secretary of state John Kerry, this summer’s 50-day war between Israel and Hamas, and the recent upsurge in violence sparked by disputes over Jerusalem’s hilltop complex that is revered by both Muslims and Jews.

Palestinian refugees make up a large proportion of Jordan’s population, and the issue is of significant importance in Jordan’s domestic politics.

tkhan@thenational.ae

* With additional reporting by Associated Press

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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.”

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