The US State Department on Tuesday announced its intention to sell up to 50 F-35 jets to the United Arab Emirates, setting the nation on its way to becoming the first Arab country to acquire one of the most advanced weapons systems yet built.
Manufactured by Lockheed Martin, the F-35 is America's next-generation stealth fighter jet. The sale of 50 of these jets is valued at $10.4 billion.
The sale was a "recognition of our deepening relationship and the UAE’s need for advanced defence capabilities to deter and defend itself against heightened threats from Iran," Secretary of State Mike Pompeo said.
"The proposed sale will make the UAE even more capable and interoperable with US partners in a manner fully consistent with America’s longstanding commitment to ensuring Israel’s qualitative military edge," he said.
As well as the F-35, the State Department also notified Congress on plans to sell other sophisticated systems to the UAE, estimated to cost $23.37 billion.
"This proposed sale [of the F-35s] will support the foreign policy and national security of the United States by helping to improve the security of an important regional partner. The UAE has been, and continues to be, a vital US partner for political stability and economic progress in the Middle East," the State Department said.
"The UAE has demonstrated a commitment to modernising its military and will have no difficulty absorbing these aircraft into their armed forces. The proposed sale of this equipment and support represents a significant increase in capability and will alter the regional military balance," it said.
The UAE Embassy in Washington said on Tuesday, the sale of the F-35 "is consistent with the US National Defence Strategy to build and expand America's network of alliances and partnerships to share the burden of collective security".
"The UAE needs a fifth generation fighter to protect the nation, to maintain an advantage over increasingly sophisticated adversaries, and to advance the collective security interests of the US and its partners in the region".
"The F-35 will be an upgrade to the US-supplied F-16 which President Clinton first approved for sale to the UAE in 2000. The UAE has deployed the F-16 in support of multiple US-led counter-terrorism, freedom of navigation, and stabilisation missions in Afghanistan, Syria and around the Arabian Gulf and Peninsula," the embassy said.
Earlier this month, UAE Ambassador to the US, Minister of State Yousef Al Otaiba, told The National that the country had been trying to acquire the F-35 for six years but while the movement on the issue now was tied to the Abraham Accord, which established relations between the UAE and Israel, it was not a result of it.
“There are other items that we've been trying to acquire since [US President George] Bush was in office. So, these are things that we have operational requirements for, that have simply been held up, largely because of either [Israel’s] qualitative military edge or other release ability issues. We've now, I think, cleared this bottleneck,” he said.
The Abraham Accord, which was signed at the White House in September, "open up the aperture of us trying to get more sophisticated defence equipment".
Such moves were key as regional countries become more central to ensuring security and stability of the Middle East.
“More countries are becoming more independent, taking more of the responsibility and the burden of the region,” Mr Al Otaiba said.
“And whether it's F-35s or enhanced trade and increased investment with regional partners, more countries are going to carry more of the load themselves. It is important for the US to understand that we are taking our area and security very seriously”.
A State Department official said on Tuesday that "security co-operation and defence trade are powerful tools of American diplomacy contributing to decades of international peace and security".
"The UAE’s historic agreement to normalise relations with the Israel under the Abraham Accords offers significant opportunities to positively transform the region’s strategic landscape. Our adversaries, especially those in Iran, know this and will stop at nothing to disrupt this shared success."
President Donald Trump has supported the move publicly. “I would have no problem in selling them the F-35, I would have absolutely no problem,” Mr Trump told Fox News in September.
He also pushed for a rapid process. “We’ve never had a dispute with [the] UAE; they’ve always been on our side. And that process is moving along – I think hopefully rapidly,” Mr Trump said.
Congress will now have 30 days to review the sale, even if its approval is not required for the sale to go through.
Leaders from both parties have, however, expressed their intent to conduct such a review.
Israel’s qualitative military edge in the region appears to be a priority for Congressional leaders. The US has an obligation to ensure that Israel's military has the most advanced systems to keep its forces technologically ahead of any other in the region.
“We in Congress have an obligation to review any US arm sales package linked to the deal… As we help our Arab partners defend against growing threats, we must continue ensuring that Israel’s qualitative military edge remains unchallenged,” then-Senate majority leader Mitch McConnell said in September.
Then-House Speaker Nancy Pelosi, a Democrat, echoed a similar sentiment. “The US Congress, on a bipartisan basis, will be watching and monitoring to ensure that Israel can maintain its qualitative military edge in the region,” she said.
Israel's defence chief Benny Gantz visited Washington in October and met his then counterpart Mark Esper to discuss the sale and Israel's military advantage.
The US agreed to supply new equipment to Israel to ensure that any it maintains the lead technologically.
“Since the US is upgrading Israel’s military capability and is maintaining Israel’s qualitative military edge, Israel will not oppose the sale of these systems to the UAE,” a joint US-Israeli statement said after the visit.
On Tuesday, the UAE Embassy in Washington said the country's "requirement for the F-35 is the same as Israel’s which has accepted US assurances to maintain its qualitative military edge."
"The UAE has already submitted its formal letter of request to the US Department of State and will work with Congress and the Administration on the review process."
ANALYSTS’ TOP PICKS OF SAUDI BANKS IN 2019
Analyst: Aqib Mehboob of Saudi Fransi Capital
Top pick: National Commercial Bank
Reason: It will be at the forefront of project financing for government-led projects
Analyst: Shabbir Malik of EFG-Hermes
Top pick: Al Rajhi Bank
Reason: Defensive balance sheet, well positioned in retail segment and positively geared for rising rates
Analyst: Chiradeep Ghosh of Sico Bank
Top pick: Arab National Bank
Reason: Attractive valuation and good growth potential in terms of both balance sheet and dividends
UAE%20SQUAD
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Jebel Ali results
2pm: Handicap (PA) Dh 50,000 (Dirt) 1,400m
Winner: AF Al Moreeb, Antonio Fresu (jockey), Ernst Oertel (trainer)
2.30pm: Maiden (TB) Dh 60,000 (D) 1,400m
Winner: Shamikh, Ryan Curatolo, Nicholas Bachalard
3pm: Handicap (TB) Dh 64,000 (D) 1,600m
Winner: One Vision, Connor Beasley, Ali Rashid Al Raihe
3.30pm: Conditions (TB) Dh 100,000 (D) 1,600m
Winner: Gabr, Sam Hitchcott, Doug Watson
4pm: Handicap (TB) Dh 96,000 (D) 1,800m
Winner: Just A Penny, Sam Hitchcock, Doug Watson
4.30pm: Maiden (TB) Dh 60,000 (D) 1,600m
Winner: Torno Subito, Sam Hitchcock, Doug Watson
5pm: Handicap (TB) Dh 76,000 (D) 1,950m
Winner: Untold Secret, Jose Santiago, Salem bin Ghadayer
Tightening the screw on rogue recruiters
The UAE overhauled the procedure to recruit housemaids and domestic workers with a law in 2017 to protect low-income labour from being exploited.
Only recruitment companies authorised by the government are permitted as part of Tadbeer, a network of labour ministry-regulated centres.
A contract must be drawn up for domestic workers, the wages and job offer clearly stating the nature of work.
The contract stating the wages, work entailed and accommodation must be sent to the employee in their home country before they depart for the UAE.
The contract will be signed by the employer and employee when the domestic worker arrives in the UAE.
Only recruitment agencies registered with the ministry can undertake recruitment and employment applications for domestic workers.
Penalties for illegal recruitment in the UAE include fines of up to Dh100,000 and imprisonment
But agents not authorised by the government sidestep the law by illegally getting women into the country on visit visas.
What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
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.”
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
How much do leading UAE’s UK curriculum schools charge for Year 6?
- Nord Anglia International School (Dubai) – Dh85,032
- Kings School Al Barsha (Dubai) – Dh71,905
- Brighton College Abu Dhabi - Dh68,560
- Jumeirah English Speaking School (Dubai) – Dh59,728
- Gems Wellington International School – Dubai Branch – Dh58,488
- The British School Al Khubairat (Abu Dhabi) - Dh54,170
- Dubai English Speaking School – Dh51,269
*Annual tuition fees covering the 2024/2025 academic year
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Emirates Cricket Board Women’s T10
ECB Hawks v ECB Falcons
Monday, April 6, 7.30pm, Sharjah Cricket Stadium
The match will be broadcast live on the My Sports Eye Facebook page
Hawks
Coach: Chaitrali Kalgutkar
Squad: Chaya Mughal (captain), Archara Supriya, Chamani Senevirathne, Chathurika Anand, Geethika Jyothis, Indhuja Nandakumar, Kashish Loungani, Khushi Sharma, Khushi Tanwar, Rinitha Rajith, Siddhi Pagarani, Siya Gokhale, Subha Srinivasan, Suraksha Kotte, Theertha Satish
Falcons
Coach: Najeeb Amar
Squad: Kavisha Kumari (captain), Almaseera Jahangir, Annika Shivpuri, Archisha Mukherjee, Judit Cleetus, Ishani Senavirathne, Lavanya Keny, Mahika Gaur, Malavika Unnithan, Rishitha Rajith, Rithika Rajith, Samaira Dharnidharka, Shashini Kaluarachchi, Udeni Kuruppuarachchi, Vaishnave Mahesh
Company%20Profile
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