Prince Mohammed and John Kerry shared an iftar meal at the US secretary of state’s home. Molly Riley / AFP
Prince Mohammed and John Kerry shared an iftar meal at the US secretary of state’s home. Molly Riley / AFP

Saudi Arabia’s Prince Mohammed in US for talks with Obama



ABU DHABI // The Saudi deputy crown prince Mohammed bin Salman is expected to meet president Barack Obama on a visit to the United States this week to discuss security and economic ties at a time of strained relations between the two countries.

After arriving in the US on Monday, Prince Mohammed, who is also Saudi Arabia’s defence minister, shared iftar with secretary of state John Kerry at the diplomat’s residence. During the meal, the two men “reviewed the strong and enduring relationship” between the two countries “and discussed a broad range of regional issues, including Yemen, Syria, Libya, and countering terrorism”, said state department spokesman John Kirby.

“They also discussed the Kingdom’s plans to transform its economy through its National Transformation Program” as well as the shooting in Orlando “and expressed their shared commitment to continue their cooperation in combating the spread of violent extremism, both regionally and internationally”.

Prince Mohammed is also due to hold meetings with CIA chief John Brennan, director of national intelligence James Clapper, US defence secretary Ashton Carter and congressional leaders from both parties, according to the Saudi-owned Asharq Al Awsat newspaper. There has been no official comment on when the prince will return home.

The Saudi Royal Court said the prince would discuss with US officials ways in which the bilateral relationship can be strengthened. Ties between the two countries have frayed significantly during the Obama administration, with enduring differences emerging over the Arab Spring, strategy in Syria, and US intentions towards Riyadh’s arch rival Iran in the wake of the historic nuclear deal.

Prince Mohammed is likely to reiterate Saudi concerns that the failing Syria peace process led by the US and Russia has no clear plan for Syrian president Bashar Al Assad to leave power although there is little prospect of a change in Mr Obama’s thinking. While the US in theory supports Mr Al Assad’s departure it has softened its stance on a timeline for this to happen, instead narrowing its focus on the fight against ISIL in Syria.

The establishment of frequent high-level talks between the two countries is in itself an important goal – a process that began with last month’s GCC summit in Riyadh, which was attended by the US president. Saudi officials would like the relationship to improve before the next US administration takes office in January.

But in a contentious US presidential election cycle where ISIL and terrorism have remained key issues, criticism of Riyadh has become a bipartisan issue and negative perceptions have reached unprecedented levels, making the task of strengthening relations more difficult.

This was underscored with remarks on Monday night by presidential candidate Hillary Clinton, who said “it is long past time for the Saudis, the Qataris and the Kuwaitis and others to stop their citizens from funding extremist organisations. And they should stop supporting radical schools and mosques around the world”.

Congress is also set on passing a bill that would allow Saudi Arabia to be sued by the families of 9/11 victims, while the White House is deciding whether to release 28 classified pages of a 2002 inquiry into the potential role of Saudi officials in the attacks.

Mr Obama has said he would veto the bill, however, while CIA director Mr Brennan said last week he believes the classified pages will be released and that “there was no evidence to indicate that the Saudi government as an institution or ... senior Saudi officials individually” were involved.

Despite the criticism in the media and by congress, counter-terrorism and intelligence cooperation between the two countries remains strong.

“Over the last 15 years, the Saudis have become among our best counterterrorism partners,” Mr Brennan said.

Prince Mohammed will also meet with United Nations secretary general Ban Ki-moon amid a row over the temporary inclusion of the Saudi-led coalition on a UN blacklist of violators of the rights of children. The UN claimed that the coalition had killed 510 Yemeni children during military operations, which Riyadh denied. The coalition has since been removed from the list. .

Away from discussions on counter-terrorism and regional crises, a key aspect of the prince’s trip will be selling Riyadh’s radical economic reform plan to the US private sector. The plan, which Prince Mohammed has spearheaded, is designed to move the country away from its dependence on oil revenue.

Asharq Al Aqsat said the prince will meet with technology CEOs in California, as he works to present Saudi Arabia as a future centre for technology innovation and, with the creation of the world’s largest sovereign wealth fund, a potentially massive investor in tech industries. It comes after the Saudi Public Investment Fund pumped US$3.5 billion (Dh12.9) into American firm Uber earlier this month – a move designed to prove Riyadh’s capacity and willingness to invest in the US.

tkhan@thenational.ae

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Power: 420kW

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Three tips from La Perle's performers

1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.

2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.

3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.

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Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Power: 181hp

Torque: 230Nm

Transmission: 6-speed automatic

Starting price: Dh79,000

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Scoreline:

Everton 4

Richarlison 13'), Sigurdsson 28', ​​​​​​​Digne 56', Walcott 64'

Manchester United 0

Man of the match: Gylfi Sigurdsson (Everton)

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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The specs

Engine: 1.5-litre 4-cylinder petrol

Power: 154bhp

Torque: 250Nm

Transmission: 7-speed automatic with 8-speed sports option 

Price: From Dh79,600

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SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
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Company profile

Date started: December 24, 2018

Founders: Omer Gurel, chief executive and co-founder and Edebali Sener, co-founder and chief technology officer

Based: Dubai Media City

Number of employees: 42 (34 in Dubai and a tech team of eight in Ankara, Turkey)

Sector: ConsumerTech and FinTech

Cashflow: Almost $1 million a year

Funding: Series A funding of $2.5m with Series B plans for May 2020

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Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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