US president-elect Joe Biden nominated retired four-star general Lloyd Austin as his defence secretary, adding an experienced Middle East hand with knowledge of regional uncertainties to his Cabinet.
Mr Austin, 67, if confirmed by the Senate, will be the first black secretary of defence and the third retired general since 1947 to take the position.
But his military past is a point of contention – some Democrats said they would prefer a civilian.
Mr Biden announced his choice on Tuesday afternoon. "Gen Austin shares my profound belief that our nation is at its strongest when we lead not only by the example of our power, but by the power of our example," the president-elect said. He emphasised that rebuilding US alliances, co-operating in facing threats and revitalising the military would be part of his nominee's mission.
To take up the position, Mr Austin will require a waiver from Congress, because he left the military only four years ago. According to the rules, an officer must be out of the military for seven years before taking up a civilian government position.
If confirmed as the 28th head of the Department of Defence, Mr Austin would bring years of experience in the Middle East.
He served as the commander of US Central Command between 2013 and 2016 and as the commanding general of US forces in Iraq between 2010 and 2011, overseeing the US withdrawal from the country under the administration of Barack Obama.
During his time in Iraq, he reportedly became close to Beau Biden, the late son of Joe Biden. Beau Biden, at the time holding the rank of Major, served on the staff of Gen Austin, and the two men often attended Catholic Mass together, remaining friends after their Iraq deployment. Beau Biden died of a brain tumor in 2015.
These shared experiences helped forge a working relationship between Mr Biden, who was vice president at the time, and Mr Austin.
It also exposed him to criticism for underestimating ISIS – the extremists took Mosul under his watch in Iraq in 2014 – and for the Obama administration’s unsuccessful efforts to train a rebel force in Syria.
But experts see Mr Austin as a trusted hand for Mr Biden and someone who understands the Middle East’s military situation as possible engagement between the US and Iran on a new nuclear deal advances.
Nicholas Heras, a defence analyst and director of government relations at the Institute for the Study of War, expected Iraq to be of crucial importance for the nominee.
"Gen Austin understands Iraq's role in Middle East policy like few other national security professionals, which is important because Iraq is a flashpoint between the US and Iran that if not managed properly could torpedo the Biden team's grand goal to reset with Iran," Mr Heras told The National.
He said that as the Biden administration prepares to negotiate with Iran over the nuclear deal, which President Donald Trump abandoned in 2015, Mr Austin would bring stability to the US military presence in the region.
“Gen Austin understands the strategic dilemma that Iran presents to the US in the Middle East," Mr Heras said.
"He saw first hand in Iraq how Iran's regional activities threaten the US and its partners, but also how the US can prioritise and execute a nuclear non-proliferation policy process towards Iran at the same time.”
Ryan Bohl, a Middle East and North Africa analyst at the US intelligence company Stratfor, said Mr Austin would bring restraint and balance to US military activity.
“He's likely to help hone the mission in Syria, which requires both restraint and nuance, and to shore up America's goals in Iraq and Afghanistan with what remaining forces the Trump administration leaves,” Mr Bohl said.
The Trump administration has ordered the withdrawal of 2,500 troops from Afghanistan, 500 from Iraq and nearly 700 from Somalia in recent weeks.
But Mr Austin, having seen the damage caused by rushed withdrawals from Iraq, is likely to show restraint.
Mr Bohl said, however, that too much restraint might embolden Tehran.
“Iran is highly likely to try some harassment tactics as the Biden administration takes power to test US resolve and pressure it to make concessions,” he said.
Mr Bohl said Mr Austin's mission for Gulf security would be unclear.
He said the Biden team “would push for GCC reconciliation between Saudi, the UAE, Bahrain, Egypt and Qatar to shore up the Gulf Arab side.
"But how they would respond to Iranian provocations is less clear.”
Mr Austin is on the advisory board for Raytheon, one of the world’s largest defence contractors.
It is a position he would relinquish, but it provides another reason for progressives to grill him during his nomination hearings.
Other acts on the Jazz Garden bill
Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.
Normcore explained
Something of a fashion anomaly, normcore is essentially a celebration of the unremarkable. The term was first popularised by an article in New York magazine in 2014 and has been dubbed “ugly”, “bland’ and "anti-style" by fashion writers. It’s hallmarks are comfort, a lack of pretentiousness and neutrality – it is a trend for those who would rather not stand out from the crowd. For the most part, the style is unisex, favouring loose silhouettes, thrift-shop threads, baseball caps and boyish trainers. It is important to note that normcore is not synonymous with cheapness or low quality; there are high-fashion brands, including Parisian label Vetements, that specialise in this style. Embraced by fashion-forward street-style stars around the globe, it’s uptake in the UAE has been relatively slow.
Company profile: buybackbazaar.com
Name: buybackbazaar.com
Started: January 2018
Founder(s): Pishu Ganglani and Ricky Husaini
Based: Dubai
Sector: FinTech, micro finance
Initial investment: $1 million
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.”
UAE currency: the story behind the money in your pockets
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
