US Secretary of State Mike Pompeo announced on Tuesday that the US Navy is moving its giant USS Hershel "Woody" Williams sea-base ship to the Souda Bay military base in Greece.
Speaking from the base on the Greek island of Crete, Mr Pompeo assured Athens of strong defence relations with the US as Greece faces a stand-off with Turkey.
"Today, I have an announcement that the prime minister foreshadowed, where the USS Hershel "Woody" Williams, the US Navy's newest expeditionary sea base … will call Souda Bay home," he said.
“It’s literally the perfect choice in light of the facility’s strategic location and it’s symbolic of a defence partnership that will continue to expand and to grow."
A senior US official said the move was a long-term investment in US military on the Mediterranean.
“We are leveraging the unique asset that Souda Bay provides: its geographic location in this dynamic Eastern Mediterranean region; outstanding support from our Hellenic Armed Forces hosts; and the ability to quickly deploy into an active theatre," the official said.
He said Souda Bay would be used as "a gas station, replenishment site, a place to swap crews while maintaining the operational effectiveness of our military assets".
He spoke of strategic alliances Greece and Cyprus have formed in the Eastern Mediterranean, including those with the UAE, Egypt and Israel.
Last week, the Chief of Staff of the UAE Armed Forces toured Greece as both sides seek to strengthen co-operation.
Lt Gen Hamad Al Rumaithi met Gen Konstantinos Floros, chief of the Hellenic National Defence general staff.
On Tuesday, Gen Al Rumaithi inspected the site of joint military exercises taking place between the two countries' air forces on Crete.
The official would not say that the US was exploring other options to its presence at Incirlik base in Turkey, almost 950 kilometres from Souda Bay.
“It’s apples and oranges in terms of our operations in Turkey, which are important but stand on their own than what we’re doing here in Greece,” he said.
But experts regarded the move as the US expanding its regional presence and reducing its dependency on Incirlik.
“Incirlik doesn’t have any permanent [US] aircraft based there," said Aaron Stein, of the Foreign Policy Research Institute.
"It’s a political base in the sense that it’s a physical thing that connects Turkey and the United States.
"It also hosts US nuclear weapons so it won’t ever be closed. Incirlik stores 50 tactical US nuclear weapons under American control.
"Souda Bay already exists, it's a port for aircraft carriers in the East Mediterranean and it has a runway. It just works. I see it as more of the US building more options."
Mr Stein said it was only partly because of the downturn in US-Turkey relations and was not really aimed at Ankara.
This month, Senator Ron Johnson told the Washington Examiner that the US was looking for alternatives to Incirlik.
“We don't know what's gonna happen to Incirlik," Mr Johnson said. "We hope for the best but we have to plan for the worst.
“We're already looking at Greece as an alternative."
Incirlik air base played a critical part in US flights to strike ISIS in Syria and Iraq.
But after Ankara bought a Russian S-400 missile defence system the S-400, and with its ties to the Palestinian militant group Hamas and pharmaceutical debt to the US, Washington appears to be hedging.
Ryan Bohl, a senior fellow at intelligence company Stratfor, said a presence in Souda Bay might be beneficial for the US Navy.
"It could be a realistic move," Mr Bohl said. "It would still allow the US the operational capabilities it has from Turkey in the Eastern Mediterranean without being hamstrung by politics.
“For the US, Incirlik base used to be a potent anti-Soviet operations centre but that's no longer the case.
"The US has kept the base open because it's been useful for its anti-ISIS operations and because Washington has wanted to keep Turkey as close to Nato as possible.”
He said it was unlikely that the US would fully close Incirlik, but expected Turkey to object to a US base in Crete.
“A new US base in Crete could anger Turkey enough that eventually Ankara themselves might consider limiting US presence at Incirlik base,” Mr Bohl said.
The US Defence Department was not immediately available for comment.
Mr Pompeo will also visit Croatia, Italy and the Vatican on his five-day European trip.
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 National selections
Al Ain
5pm: Bolereau
5.30pm: Rich And Famous
6pm: Duc De Faust
6.30pm: Al Thoura
7pm: AF Arrab
7.30pm: Al Jazi
8pm: Futoon
Jebel Ali
1.45pm: AF Kal Noor
2.15pm: Galaxy Road
2.45pm: Dark Thunder
3.15pm: Inverleigh
3.45pm: Bawaasil
4.15pm: Initial
4.45pm: Tafaakhor
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE