Germany and Saudi Arabia agreed on Tuesday to enter a new phase in relations after a diplomatic dispute that had soured ties between the two countries.
The discord began in November when the German foreign minister at the time, Sigmar Gabriel, condemned "adventurism" in the Middle East, comments that were perceived by some as an attack on increasingly assertive Saudi policies. Arab forces, led by Saudi Arabia and the UAE, are fighting Iran-aligned Houthis in Yemen's war.
Riyadh dismissed Mr Gabriel's comments as "shameful" and withdrew its ambassador to Germany. Exports from the European country to Saudi Arabia fell 5 per cent in the first half of 2018.
German Chancellor Angela Merkel has been trying to ease tensions, speaking to Saudi Crown Prince Mohammed bin Salman by telephone.
"In recent months, our relations have witnessed a misunderstanding which stand in sharp contrast to our otherwise strong and strategic ties with the Kingdom of Saudi Arabia and we sincerely regret this," German Foreign Minister Heiko Maas said alongside his Saudi counterpart, Adel Al Jubeir, at the United Nations, where leaders are gathered for the annual General Assembly.
"We should have been clearer in our communication and engagement in order to avoid such misunderstandings between Germany and the kingdom," he said.
Mr Al Jubeir said he welcomed Mr Maas' statement and invited him to the kingdom to strengthen ties again.
Earlier this month, Germany approved a delivery of weapons to Saudi Arabia, a government document showed, after saying it would halt arms sales to countries involved in the war in Yemen.
Last month, European and US pharmaceutical associations waded into the diplomatic dispute, warning that restrictions on German-made drugs could hurt Saudi patients and dampen future investment in the kingdom.
"We'll do our best to make this partnership with the Kingdom even stronger than before," Mr Maas said.
The dispute was reminiscent of one that erupted between Canada and Saudi Arabia, which was triggered by a post on Twitter by the Canadian foreign minister calling for the release of human rights activists in the kingdom.
Saudi Arabia responded by expelling the Canadian ambassador, recalling its own envoy, freezing new trade and investment, suspending flights and ordering Saudi students to leave Canada.
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Killing of Qassem Suleimani
Diriyah%20project%20at%20a%20glance
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Easter%20Sunday
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Countries offering golden visas
UK
Innovator Founder Visa is aimed at those who can demonstrate relevant experience in business and sufficient investment funds to set up and scale up a new business in the UK. It offers permanent residence after three years.
Germany
Investing or establishing a business in Germany offers you a residence permit, which eventually leads to citizenship. The investment must meet an economic need and you have to have lived in Germany for five years to become a citizen.
Italy
The scheme is designed for foreign investors committed to making a significant contribution to the economy. Requires a minimum investment of €250,000 which can rise to €2 million.
Switzerland
Residence Programme offers residence to applicants and their families through economic contributions. The applicant must agree to pay an annual lump sum in tax.
Canada
Start-Up Visa Programme allows foreign entrepreneurs the opportunity to create a business in Canada and apply for permanent residence.
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.”
North Pole stats
Distance covered: 160km
Temperature: -40°C
Weight of equipment: 45kg
Altitude (metres above sea level): 0
Terrain: Ice rock
South Pole stats
Distance covered: 130km
Temperature: -50°C
Weight of equipment: 50kg
Altitude (metres above sea level): 3,300
Terrain: Flat ice
Under 19 Cricket World Cup, Asia Qualifier
Fixtures
Friday, April 12, Malaysia v UAE
Saturday, April 13, UAE v Nepal
Monday, April 15, UAE v Kuwait
Tuesday, April 16, UAE v Singapore
Thursday, April 18, UAE v Oman
UAE squad
Aryan Lakra (captain), Aaron Benjamin, Akasha Mohammed, Alishan Sharafu, Anand Kumar, Ansh Tandon, Ashwanth Valthapa, Karthik Meiyappan, Mohammed Faraazuddin, Rishab Mukherjee, Niel Lobo, Osama Hassan, Vritya Aravind, Wasi Shah
How has net migration to UK changed?
The figure was broadly flat immediately before the Covid-19 pandemic, standing at 216,000 in the year to June 2018 and 224,000 in the year to June 2019.
It then dropped to an estimated 111,000 in the year to June 2020 when restrictions introduced during the pandemic limited travel and movement.
The total rose to 254,000 in the year to June 2021, followed by steep jumps to 634,000 in the year to June 2022 and 906,000 in the year to June 2023.
The latest available figure of 728,000 for the 12 months to June 2024 suggests levels are starting to decrease.
