American and British withdrawal from the Middle East is likely to lead to yet more instability and conflict over the next decade, the UK’s former minister of international development has said.
Speaking at a conference on the future of Palestine and Britain’s role in the region, Rory Stewart, who served as International Development secretary, offered a gloomy outlook on the consequences of the UK's policy shifts, funding cuts and waning influence in the region.
“We talk a lot about America leaving the Middle East and that's clearly a big phenomenon and one of the things that will lead to increasing instability and interstate conflict in the Middle East within the next decade," Mr Stewart told listeners online. "I fear that it will look more violent than it did at the end of the 20th century, partly because of Americans withdrawing but also the British withdrawal."
The writer and humanitarian, who had a career in foreign affairs before joining government, said Britain had “given up” on investing in the expertise and “deep-country knowledge required from our diplomats” over the last three decades.
“As an example, I remember in 2011 that the number of British ambassadors in the Middle East who spoke fluent Arabic had declined from 13 to three. And the size of our representations in many of these places have shrunk and continued to shrink,” Mr Stewart said.
During an online talk with Vincent Fean, chair of the Balfour Project charity that put on the conference, Abandoning Palestine, Mr Stewart lamented the UK’s absence in the Palestine peace process. He said this had “now been reduced further by the current foreign secretary” and criticised an overall “diminution of British presence”.
“Less investment in the BBC World Service, less investment in the British Council, a less visible presence in terms of offering scholarships," he added.
“I would like to see, for example, Britain investing strongly in cultural heritage in Palestine. I would love to see investments in Bethlehem in traditional crafts, but also in Hebron and Nablus. I think there is extraordinary heritage under threat and I think Britain has an incredible strength in protecting landscapes."
Mr Stewart, who has lived in Amman for two years while working on a development project with the Turquoise Mountain charity he co-founded, singled out Jordan as an “exception” to the UK’s waning interest in the region.
“I think Jordan is maybe quite an interesting example of a place where Britain is still demonstrating quite a wide range of cultural, military, diplomatic and political engagements; deepening the relationships between the royal families, thinking about how to do development projects, and investing in renewable energy. So there are exceptions,” he said.
“It is absolutely vital” that Britain and the European Union fill in some of the gaps left by the US withdrawal, Mr Stewart said. However, he is worried that Britain’s recent “tilt towards Asia Pacific” is reinforcing “America's obsession with a confrontation with China”, which meant “abandoning Africa, Europe and the Middle East.”
Last year, the UK dropped its pledge to devote 0.7 per cent of its GDP — £4.6 billion ($5.7bn) — to international development. The war in Ukraine has further diverted the already reduced funds from humanitarian crises in places such as Yemen and Syria.
“The cuts to the British attache department have been particularly brutal, partly because they were cut at a time when an enormous amount of money was already pre-committed to different multilateral institutions,” Mr Stewart said.
“So almost overnight, Britain, which has been steadily increasing its bilateral presence in 30 countries, found itself suddenly unable to continue programmes that everybody assumed would expand.”
The challenge for Britain now is “rebuilding the country’s international development capacity”. However, the adventurer said that domestic concerns over costs of living need serious and immediate attention.
The war in Ukraine had “punched a hole in the global trading system” and increased the “pressure” on the UK to develop technology to decrease its dependence on others, albeit at a high cost. The result would mean a more inward looking politics and economic outlook.
“We have been the beneficiaries for the last few decades of a very, very open trading system, where we relied on importing an enormous number of goods from China. And, of course, it's turned out that an enormous amount of our food and fertiliser comes from Russia and the surrounding countries," he noted. “Now we are moving into a world in which there will be much more pressure for us to develop our own independent technology, to grow more of our own food, to make ourselves energy independent. And all of that will come with an immense economic costs; it will increase prices to consumers dramatically, which will have a deep effect on the cost of living and inflation in the developed world, but will also lead to terrible poverty and suffering.”
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Profile of Whizkey
Date founded: 04 November 2017
Founders: Abdulaziz AlBlooshi and Harsh Hirani
Based: Dubai, UAE
Number of employees: 10
Sector: AI, software
Cashflow: Dh2.5 Million
Funding stage: Series A
MATCH INFO
Fixture: Thailand v UAE, Tuesday, 4pm (UAE)
TV: Abu Dhabi Sports
The specs
Engine: four-litre V6 and 3.5-litre V6 twin-turbo
Transmission: six-speed and 10-speed
Power: 271 and 409 horsepower
Torque: 385 and 650Nm
Price: from Dh229,900 to Dh355,000
Race%20card
%3Cp%3E6pm%3A%20Al%20Maktoum%20Challenge%20Round%201%20%E2%80%93%20Group%201%20(PA)%20%2450%2C000%20(Dirt)%201%2C600m%3Cbr%3E6.35pm%3A%20Dubai%20Racing%20Club%20Classic%20%E2%80%93%20Handicap%20(TB)%20%24100%2C000%20(D)%202%2C410m%3Cbr%3E7.10pm%3A%20Dubawi%20Stakes%20%E2%80%93%20Group%203%20(TB)%20%24150%2C000%20(D)%201%2C200m%3Cbr%3E7.45pm%3A%20Jumeirah%20Classic%20Trial%20%E2%80%93%20Conditions%20(TB)%20%24150%2C000%20(Turf)%201%2C400m%3Cbr%3E8.20pm%3A%20Al%20Maktoum%20Challenge%20Round%201%20%E2%80%93%20Group%202%20(TB)%20%24250%2C000%20(D)%201%2C600m%3Cbr%3E8.55pm%3A%20Al%20Fahidi%20Fort%20%E2%80%93%20Group%202%20(TB)%20%24180%2C000%20(T)%201%2C400m%3Cbr%3E9.30pm%3A%20Ertijaal%20Dubai%20Dash%20%E2%80%93%20Listed%20(TB)%20%24100%2C000%20(T)%201%2C000m%3C%2Fp%3E%0A
Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
How does ToTok work?
The calling app is available to download on Google Play and Apple App Store
To successfully install ToTok, users are asked to enter their phone number and then create a nickname.
The app then gives users the option add their existing phone contacts, allowing them to immediately contact people also using the application by video or voice call or via message.
Users can also invite other contacts to download ToTok to allow them to make contact through the app.
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.”
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
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How it works
1) The liquid nanoclay is a mixture of water and clay that aims to convert desert land to fertile ground
2) Instead of water draining straight through the sand, it apparently helps the soil retain water
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4) The cost of treatment per hectare (2.4 acres) of desert varies from $7,000 to $10,000 per hectare