BEIRUT // The diplomatic impasse on Syria after Russia and China's steadfast refusal to back any UN resolution condemning the ruthless repression of protesters could accelerate the militarisation of the uprising, analysts warn.
Diplomatic solutions to the Syrian crisis have been "exhausted," said Shadi Hamid, head of research at the Brookings Doha Centre, "and now you're seeing serious discussion of the military options."
"You're hearing more discussion of safe zones, buffer zones, humanitarian corridors and that's something that the Syrian opposition has requested," he said.
Moscow and Beijing sparked outrage in the West for vetoing on Saturday a UN Security Council resolution condemning the crackdown by President Bashar al-Assad's regime on the 11-month uprising, which activists say has left more than 6,000 people dead.
It was the second time they had done so in four months, and Syria's cold war ally Russia underlined its intention to prevent world powers from forcing the crisis by sending Foreign Minister Sergei Lavrov to Damascus on Tuesday.
His visit came as government troops stepped up a fierce assault on the flashpoint central city of Homs, where more than 400 people have died since Saturday, according to activists.
The Security Council veto "was the best recruiting tool that the Free Syrian Army (FSA) could have asked for. It puts them in a much stronger position now," Hamid said.
"I think a lot of Syrians are saying 'We tried peaceful protests, it didn't work, now we have to defend ourselves from the repression of the regime'," he added.
Hilal Khashan, professor of political science at the American University of Beirut (AUB), argued that the diplomatic stalemate at the United Nations did not prevent outside support for the Syrian opposition.
Without having to go through the Security Council, "the West has many options at its disposal for weakening the regime, particularly by supplying the FSA and imposing more economic sanctions," he said.
Imad Salameh, another political analyst at AUB, warned that pursuing such options would not prevent a violent political transition.
"All that can be done internationally is (to help) this process take place quickly," he said, referring in particular to "an economic, political and military blockade of the regime."
After Russia and China's Security Council veto, the Syrian National Council and the FSA called on businessmen in Syria and other Arab countries to help finance "the self-defence operations and civilian areas controlled by the FSA."
The SNC is a coalition of Syria's major opposition parties, while the FSA, based in Turkey across the border from northwestern Syria, claims to have 40,000 soldiers who have deserted the regular army.
In Washington, top Republican US Senator John McCain said the time had come to consider arming the outgunned opposition to Assad.
But the FSA would need much more than that to topple the regime, said the Brookings Doha Centre's Hamid.
"Arming the Free Syrian Army would have to come with other measures for it to be successful, and that would include targeted air support. It would require some kind of more involved military intervention," as happened in Kosovo in the 1990s, he added.
Analysts say the government's violent crackdown could intensify in the coming days.
"The Syrian question has yet to reach an extreme. The violence will rise as well as the death toll, but the crisis will be settled this year, and not in a matter of years, as some think," said the AUB's Khashan.
For Salameh, the military establishment is all that remains of the regime.
"I think the popular and international pressure on Syria will finally cause this institution to collapse," he said.
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How Islam's view of posthumous transplant surgery changed
Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.
Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.
The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.
One school of thought viewed the removal of organs after death as equally impermissible.
That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.
The biog
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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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