The Gulf Cooperation Council (GCC) convened its annual summit yesterday, marking another year in its emergence as the region's most influential political bloc.
Bahrain's King Hamad Bin Isa Al Khalifa is hosting the two-day meeting, which also was being attended by Kuwait's emir, Sheikh Sabah Al Ahmed Al Jaber Al Sabah, and Sheikh Mohammed Bin Rashid Al Makhtoum, UAE Vice President, Prime Minister and Ruler of Dubai.
The prospect of a nuclear-armed Iran and Tehran's alleged meddling in the internal affairs of Arabian Gulf nations has galvanised the six-member alliance.
As the summit prepared to get under way at Sakhir Palace yesterday, Saudi Arabia's foreign minister, Prince Saud Al Faisal, warned Iran yesterday against interfering in Gulf Arab affairs and spreading "sedition."
"Interference to stir sedition is unacceptable from a neighbour," Prince Saud was quoted as saying by the London-based, Saudi-owned daily Al Hayat. "This is not comfortable because it is trying to use the circumstances to interfere."
In the past two years, the GCC has helped broker a political transition in Yemen, deployed security forces to help the government of Bahrain quell protests and agreed to deeper cooperation to address shared threats to their internal security. GCC member nations have also provided billions of dollars in aid to assist the governments of Egypt, Yemen and Bahrain.
Security issues are expected to dominate the summit agenda in Manama.
"We're facing a stage in which the Arab Gulf states must be united rather than separate parts, as in reality, we have similar political systems and share same threats that endanger our nations," the Bahrain state news agency quoted the country's prime minister, Khalifa Bin Salman Al Khalifa, said Sunday.
"What we want at this stage is a union of Gulf that would achieve our long sought cooperation and aspiration, move us forward to a further dedicated coordination, integration and interdependence we've been talking about, and would also provide us with a collective security umbrella as strategic option for achieving self-security."
The heads of state and top officials attending the meeting are expected to reiterate their call for the Syrian president, Bashar Al Assad, to step down. In November, the GCC recognised the Syrian National Coalition as the legitimate representative of the Syrian people.
Deeper economic cooperation remains a goal for the GCC, whose collective gross domestic product (GDP) in 2011 was some US$1.37 trillion.
Bahrain's foreign minister, Sheikh Khaled bin Ahmed Al Khalifa, said earlier this month that a proposed GCC monetary union was still under study.
The announcement of a union would be made at a "special summit in Riyadh in the near future", he said.
Other heads of delegation in Manama include Salman Bin Abdulaziz Al Saud, the crown prince of Saudi Arabia; Sheikh Tamim Bin Hamad Bin Khalifa Al Thani, the crown prince of Qatar; and Sayed Fahad bin Mahmoud Al Said, the deputy prime minister for the Council of Ministers of Oman.
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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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Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
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Richard Flanagan
Chatto & Windus
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE