The Biden administration has set September 11 as the deadline to complete its troop withdrawal from Afghanistan and is increasing security co-ordination. US Marine Corps photo by Sgt Justin T Updegraff, Operation Resolute Support via AP
The Biden administration has set September 11 as the deadline to complete its troop withdrawal from Afghanistan and is increasing security co-ordination. US Marine Corps photo by Sgt Justin T Updegraff, Operation Resolute Support via AP
The Biden administration has set September 11 as the deadline to complete its troop withdrawal from Afghanistan and is increasing security co-ordination. US Marine Corps photo by Sgt Justin T Updegraff, Operation Resolute Support via AP
The Biden administration has set September 11 as the deadline to complete its troop withdrawal from Afghanistan and is increasing security co-ordination. US Marine Corps photo by Sgt Justin T Updegraf

US intensifies outreach to Pakistan as withdrawal from Afghanistan nears


Joyce Karam
  • English
  • Arabic

The US is intensifying outreach to Pakistan as it moves to complete its troop withdrawal from Afghanistan by September.

The White House announced on Monday that National Security Adviser Jake Sullivan had met his Pakistani counterpart, Moeed Yusuf, at the weekend.

The Sullivan-Yusuf meeting is the most senior in-person encounter between Washington and Islamabad since US President Joe Biden came into office in January.

The two met in Geneva and “discussed a range of bilateral, regional and global issues of mutual interest and discussed ways to advance practical co-operation. Both sides agreed to continue the conversation,” the White House said.

US Secretary of Defence Lloyd Austin on Monday called Pakistan’s Chief of Army Staff Gen Qamar Javed Bajwa for the second time in three weeks.

“I reiterated my appreciation for the US-Pakistan relationship and my desire to continue to work together to further regional security and stability,” Mr Austin tweeted.

The Biden administration has set September 11 as the deadline to complete its troop withdrawal from Afghanistan and is increasing security co-ordination with Islamabad as it plans its post-withdrawal posture in the region.

US Central Command said on Tuesday that the withdrawal is going according to schedule and that the military has completed up to 20 per cent of its pullout from America’s longest war.

Last week, David Helvey, assistant secretary of defence for Indo-Pacific affairs, told Congress that Pakistan continues to allow US overflight in its airspace.

“Pakistan has played an important role in Afghanistan. They supported the Afghan peace process. Pakistan also has allowed us to have overflight and access to be able to support our military presence in Afghanistan,” Mr Helvey told the Senate Armed Services Committee.

Asked about post-withdrawal plans, Mr Helvey said the process was “ongoing”.

“We’re working to reposition our counter-terrorism capabilities, including by retaining assets in the region.”

While Mr Biden’s plan to withdraw from Afghanistan has been criticised for increasing the risk of an Al Qaeda resurgence and a Taliban takeover in the country, it’s also being met with praise from progressive members of Congress looking to keep the focus on domestic issues.

A total of 23 members of Congress sent a letter to Mr Biden on Friday commending the withdrawal, saying it could save US taxpayers $50 billion.

The group is urging the White House to cut this amount from the US defence budget and spend it to “fund the American people's needs”.

The Pentagon says it has spent about $825bn on operations in Afghanistan.

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Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

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Disclaimer

Director: Alfonso Cuaron 

Stars: Cate Blanchett, Kevin Kline, Lesley Manville 

Rating: 4/5

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.”

BULKWHIZ PROFILE

Date started: February 2017

Founders: Amira Rashad (CEO), Yusuf Saber (CTO), Mahmoud Sayedahmed (adviser), Reda Bouraoui (adviser)

Based: Dubai, UAE

Sector: E-commerce 

Size: 50 employees

Funding: approximately $6m

Investors: Beco Capital, Enabling Future and Wain in the UAE; China's MSA Capital; 500 Startups; Faith Capital and Savour Ventures in Kuwait