US Secretary of State Antony Blinken highlighted the Biden administration’s emphasis on great power competition with China and Russia, criticising their human rights records on Monday.
The administration's sharp emphasis on China, coupled with a recent White House downsizing of its National Security Council team devoted to the Middle East, indicate that President Joe Biden hopes to focus more on Asia.
It suggests that he wants to avoid the protracted Middle East military conflicts that have plagued his predecessors. Yet, he warned that Iran's unremitting efforts to build a nuclear bomb pose "a real problem".
"Based on public reports, the time that it would take Iran to produce enough fissile material for a nuclear weapon is down to, we think, a few months," Mr Blinken told MSNBC News.
"The agreement, the infamous JCPOA [Joint Comprehensive Plan of Action], pushed that to beyond a year. So that’s a real problem, and it’s a problem that could get more acute, because if Iran continues to lift some of these restraints imposed by the agreement, that could get down to a matter of weeks."
He warned that Iran is getting closer to the point where it would be either a threshold nuclear power or a nuclear power.
"That is profoundly against our interests," Mr Blinken said.
China posed the most significant challenge to the US of any other country in Asia, Mr Blinken said.
“But it’s a complicated one. There are adversarial aspects to the relationship. There are certainly competitive ones and there are still some co-operative ones, too," he said.
“But whether we’re dealing with any of those aspects to the relationship, we have to be able to approach China from a position of strength, not weakness.
"And that strength I think comes from having strong alliances – something China does not have – actually engaging in the world and showing up in these international institutions.”
Mr Blinken's remarks came after National Security Adviser Jake Sullivan downsized the National Security Council staff for the Middle East while expanding staff for Asia, which Politico reported last week.
Under the new structure, the Indo-Pacific director Kurt Campbell oversees three deputies: Laura Rosenberger for China, Sumona Guha for South Asia and Andrea Kendall-Taylor for Russia and Central Asia.
Meanwhile, the Middle East director Brett McGurk only has one deputy: Barbara Leaf, the former ambassador to the UAE.
Former presidents Donald Trump and Barack Obama had also hoped to direct more attention on Asia and less on military quagmires in the Middle East.
Former secretary of state Hillary Clinton famously called this policy the US “pivot to Asia".
And under Mr Trump, the Pentagon’s national defence strategy called for a primary focus on “great power competition” with China and Russia.
But he and Mr Obama found it difficult to make that vision a reality as the US was drawn further into Middle East military conflicts after the Arab uprisings, the rise of ISIS in Iraq and Syria, and US support for the Saudi-led coalition fighting in Yemen.
Tension in the Arabian Gulf also increased sharply after Mr Trump’s maximum-pressure campaign against Iran and his withdrawal from Mr Obama’s nuclear deal.
Mr Blinken repeated that Mr Biden would re-enter the nuclear deal should Iran return to its obligations under the accord.
He confirmed that the Biden administration was reviewing the US-Saudi relationship “to make sure that partnership is being conducted in a way that’s consistent with our interests and also with our values".
And while Mr Blinken called Saudi Arabia “an important partner for us in counter-terrorism", he said in his Senate confirmation hearing last month that Mr Biden intended to end US support for the campaign against Yemen’s Iran-backed Houthi rebels.
China does not have military presence in the Middle East comparable to the US, but Beijing has a large presence throughout the region as part of its Belt and Road Initiative.
Beijing imports about 40 per cent of its crude oil supplies from the Middle East.
Mr Blinken said that the US should make sure “that our military is postured so that it can deter Chinese aggression”, while calling Beijing out for a myriad human rights breaches.
His criticism of Russia also focused on human rights, namely Moscow's detention of opposition leader Alexei Navalny and the suppression of protesters supporting him.
Mr Blinken said the Biden administration was “deeply disturbed by his violent crackdown against people exercising their rights to protest peacefully against their government".
He said the US government was reviewing whether to place more sanctions on Russia over Mr Navalny’s detention, interference in US elections, the SolarWinds hack and placing bounties on American troops in Afghanistan.
The Biden administration's first test of its commitment to Asia and emphasis on human rights came on Monday after Myanmar's military staged a coup against democratically elected leader Aung San Suu Kyi and other senior politicians.
The coup prompted a statement from Mr Biden, who threatened to reinstate US sanctions on Myanmar.
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.”
THE BIO
Born: Mukalla, Yemen, 1979
Education: UAE University, Al Ain
Family: Married with two daughters: Asayel, 7, and Sara, 6
Favourite piece of music: Horse Dance by Naseer Shamma
Favourite book: Science and geology
Favourite place to travel to: Washington DC
Best advice you’ve ever been given: If you have a dream, you have to believe it, then you will see it.
Sarfira
Director: Sudha Kongara Prasad
Starring: Akshay Kumar, Radhika Madan, Paresh Rawal
Rating: 2/5
Zayed Sustainability Prize
500 People from Gaza enter France
115 Special programme for artists
25 Evacuation of injured and sick
Electoral College Victory
Trump has so far secured 295 Electoral College votes, according to the Associated Press, exceeding the 270 needed to win. Only Nevada and Arizona remain to be called, and both swing states are leaning Republican. Trump swept all five remaining swing states, North Carolina, Georgia, Pennsylvania, Michigan and Wisconsin, sealing his path to victory and giving him a strong mandate.
Popular Vote Tally
The count is ongoing, but Trump currently leads with nearly 51 per cent of the popular vote to Harris’s 47.6 per cent. Trump has over 72.2 million votes, while Harris trails with approximately 67.4 million.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
If you go
The flights Etihad (www.etihad.com) and Spice Jet (www.spicejet.com) fly direct from Abu Dhabi and Dubai to Pune respectively from Dh1,000 return including taxes. Pune airport is 90 minutes away by road.
The hotels A stay at Atmantan Wellness Resort (www.atmantan.com) costs from Rs24,000 (Dh1,235) per night, including taxes, consultations, meals and a treatment package.
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
UK-EU trade at a glance
EU fishing vessels guaranteed access to UK waters for 12 years
Co-operation on security initiatives and procurement of defence products
Youth experience scheme to work, study or volunteer in UK and EU countries
Smoother border management with use of e-gates
Cutting red tape on import and export of food
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%3Cp%3EThere%20are%20regular%20flights%20from%20Dubai%20to%20Kathmandu.%20Fares%20with%20Air%20Arabia%20and%20flydubai%20start%20at%20Dh1%2C265.%3Cbr%3EIn%20Kathmandu%2C%20rooms%20at%20the%20Oasis%20Kathmandu%20Hotel%20start%20at%20Dh195%20and%20Dh120%20at%20Hotel%20Ganesh%20Himal.%3Cbr%3EThird%20Rock%20Adventures%20offers%20professionally%20run%20group%20and%20individual%20treks%20and%20tours%20using%20highly%20experienced%20guides%20throughout%20Nepal%2C%20Bhutan%20and%20other%20parts%20of%20the%20Himalayas.%3C%2Fp%3E%0A