The ultra-modern architecture of the Museum of Liverpool’s spiralling staircase and giant pillbox window will be the backdrop for Britain’s continuing journey eastward.
Reflecting the city’s imperial past and more left-leaning present, the high galleries will from Friday to Sunday host the G7 foreign ministerial that will focus on how to tap into Asia’s growing economic presence and how to check China’s increasing might.
In her former job as international trade secretary, Liz Truss negotiated several post-Brexit deals that gave her insight into the flourishing East Asian economies — and more importantly into China.
This perhaps explains why the new British foreign secretary invited her counterparts from the Association of South-East Asian Nations (Asean) to the conference of the democratic world's leading seven nations.
The Omicron variant means that representatives from Malaysia, Thailand and Indonesia on Sunday morning will join the meeting virtually, but that should not put off the real business.
Ms Truss has shown a demonstrable interest in Asia, with her first speech as foreign secretary on Wednesday mentioning Asean nations twice.
Closer relationship on the agenda
So what is the invitation’s subtext? The communist elite in Beijing clearly cannot avoid the message that the West is steadily moving to check its influence in Asia.
Hostile words from politicians in Britain, the US and Australia are one thing, but there now appears a clear objective to forge alliances with Indo-Pacific countries and the 10 countries of Asean in particular.
There are some in Asean who will be dissuaded from forging such alliances due to the reaction from Beijing, which others that have been trampled on by China may see it as an insurance policy to build closer ties with the West.
None of this is said in official western diplomacy, however, at least not directly. Diplomats have made clear that they recognise the importance of Asean countries and now want to take matters to a more formal footing.
Over the next decade, it is predicted that 90 per cent of world trade will be done in Asia, hence the shift in interest to the Indo-Pacific region.
The Asean invitation is linked to the G7 becoming more broad-based, with Indo-Pacific trade and security in its sights, suggests Michael Clarke.
“The UK’s tilt is very much a political one more than anything else,” said the Royal United Services Institute think tank expert.
“It’s to create better dialogues with significant Asian countries and we know that Liz Truss is genuinely keen, that she's a convert to the Indo-Pacific mission.”
He also suggests that the manoeuvres are part of a “significant push to condense China across the region”, with Australia leading the way.
“Britain shares the view that we shouldn't be frightened of China and we want to show that our options are not constrained by fear of China,” he added.
Submarine row echoes
China could view the G7 expansion as a further development of September’s Aukus agreement — in which the UK and the US agreed to build nuclear-powered submarines for Australia — and that it is facing an increasingly hard-edged military approach.
The Asean invitation might also be a diplomatic move to placate Indonesia and Malaysia, which have criticised the agreement.
This is not something Ms Truss readily admits to.
“I will be hosting our friends and partners to discuss how we build closer economic, technology and security ties globally,” she said in a statement.
“I want us to build a worldwide network of liberty that advances freedom, democracy and enterprise and encourages like-minded countries to work together from a position of strength.”
Ms Truss is also said to be very keen to show that the G7 has, in a practical sense, an attractive offer to make to the Asean countries.
While Britain to some degree tempers its views on China, the US has been more direct.
“On security, [US Secretary of State Antony Blinken’s] meetings will focus on strengthening the regional security infrastructure in response to [China's] bullying in the South China Sea,” Daniel Kritenbrink, US assistant secretary of state for East Asian and Pacific affairs, said on Wednesday.
The US strategy of gathering allies that surround its rival is clear. After Liverpool, Mr Blinken will travel to Indonesia, Malaysia and Thailand as part of President Joe Biden’s “sustained engagement with Indo-Pacific countries”, said Mr Kritenbrink.
“America’s security and economic interests are intrinsically tied to the preservation of the rules-based order that has served all of us so well. President Biden is committed to elevating US-Asean engagement to unprecedented levels, expanding our formal engagement and co-operation,” he added.
The message to China is clear: if it does not abide by the international rules-based system, Britain, the US and their growing list of potential allies will counter it as a powerful bloc.
The great unknown is, when challenged by this, will Beijing choose concession or confrontation?
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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.”
Most sought after workplace benefits in the UAE
- Flexible work arrangements
- Pension support
- Mental well-being assistance
- Insurance coverage for optical, dental, alternative medicine, cancer screening
- Financial well-being incentives
The alternatives
• Founded in 2014, Telr is a payment aggregator and gateway with an office in Silicon Oasis. It’s e-commerce entry plan costs Dh349 monthly (plus VAT). QR codes direct customers to an online payment page and merchants can generate payments through messaging apps.
• Business Bay’s Pallapay claims 40,000-plus active merchants who can invoice customers and receive payment by card. Fees range from 1.99 per cent plus Dh1 per transaction depending on payment method and location, such as online or via UAE mobile.
• Tap started in May 2013 in Kuwait, allowing Middle East businesses to bill, accept, receive and make payments online “easier, faster and smoother” via goSell and goCollect. It supports more than 10,000 merchants. Monthly fees range from US$65-100, plus card charges of 2.75-3.75 per cent and Dh1.2 per sale.
• 2checkout’s “all-in-one payment gateway and merchant account” accepts payments in 200-plus markets for 2.4-3.9 per cent, plus a Dh1.2-Dh1.8 currency conversion charge. The US provider processes online shop and mobile transactions and has 17,000-plus active digital commerce users.
• PayPal is probably the best-known online goods payment method - usually used for eBay purchases - but can be used to receive funds, providing everyone’s signed up. Costs from 2.9 per cent plus Dh1.2 per transaction.
More coverage from the Future Forum
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Fight card
1. Bantamweight: Victor Nunes (BRA) v Siyovush Gulmamadov (TJK)
2. Featherweight: Hussein Salim (IRQ) v Shakhriyor Juraev (UZB)
3. Catchweight 80kg: Rashed Dawood (UAE) v Khamza Yamadaev (RUS)
4. Lightweight: Ho Taek-oh (KOR) v Ronald Girones (CUB)
5. Lightweight: Arthur Zaynukov (RUS) v Damien Lapilus (FRA)
6. Bantamweight: Vinicius de Oliveira (BRA) v Furkatbek Yokubov (RUS)
7. Featherweight: Movlid Khaybulaev (RUS) v Zaka Fatullazade (AZE)
8. Flyweight: Shannon Ross (TUR) v Donovon Freelow (USA)
9. Lightweight: Mohammad Yahya (UAE) v Dan Collins (GBR)
10. Catchweight 73kg: Islam Mamedov (RUS) v Martun Mezhulmyan (ARM)
11. Bantamweight World title: Jaures Dea (CAM) v Xavier Alaoui (MAR)
12. Flyweight World title: Manon Fiorot (FRA) v Gabriela Campo (ARG)
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.