Amid solidarity with Afghanistan, stern discouragement of Russian meddling in the former Soviet bloc and pledges to combat ISIL, Nato last night completed a summit that was truly if unofficially dominated by Brexit.
The 28-nation alliance, meeting in the Polish capital of Warsaw with a UAE delegation among the observers, agreed a range of measures supporting Ukraine and the Afghan government and helping Middle Eastern and North African countries targeted by terrorists.
But it was also clear that the deep uncertainty felt by businesses and individuals about Britain’s referendum vote to leave the European Union was the issue weighing most heavily on the minds of the heads of state and officials.
“It is probably not an exaggeration to say there is almost no other subject on the table when I get together with my colleagues,” Britain’s foreign minister, Philip Hammond, who opposed Brexit, said at a dinner on Friday. “We are at a Nato meeting but most of the discussions have not been about Nato issues; they have been about the outcome of the referendum and the consequences.”
The US president Barack Obama raised his concerns in private talks with the president of the European Council, Donald Tusk, and the president of the European Commission, Jean-Claude Juncker.
Officials say they countered his desire for a swift conclusion of the so-called divorce settlement between Britain and the EU by reiterating Brussels’ line that proceeding too quickly could damage unity among the 27 states that will remain within the bloc.
But there is widespread recognition that the consequences of Brexit could prove severe, despite Mr Obama’s claim that talk of the “entire edifice of European security and prosperity crumbling”, or a negative impact on transatlantic relationships, amounted to misplaced hyperbole.
Firm negotiations are unlikely to start until Britain has a new prime minister, with the ruling Conservative party due to decide between two candidates, the interior minister Theresa May and a former junior minister, Andrea Leadsom, in September. Only then will a decision be taken on when to trigger the exit clause beginning up to two years of negotiations.
Turkey, which previously counted on British support to resist wider EU hostility towards its own bid to join the union, is also worried that Brexit robs it of a rare ally.
On Afghanistan, facing renewed security fears as a result of intensified Taliban attacks, the alliance appeared united after a meeting on Saturday attended by the country’s president, Ashraf Ghani, and chief executive, Abdullah Abdullah.
Nato’s secretary general, Jens Stoltenberg, said heads of state were agreed that Afghanistan “does not stand alone – and we are committed for the long haul”.
As Washington seeks to reduce its own military involvement, Mr Stoltenberg said non-US funding pledges, already made or expected, convinced him the target of US$1 billion (Dh3.67bn) a year was close to being reached. The US spends $3.45bn annually on training, advising and supporting Afghan forces and has eased plans for immediate cuts in troop levels.
Nato forces, including the US contingent, will remain in 2017 at about the same level as this year, “around 12,000”, Mr Stoltenberg said.
“Afghan security forces are now responsible for security across the whole country. They are defending the Afghan people with dedication and courage; we continue to train, advise and assist them; but Afghanistan still faces serious instability and violence; so our continued political, military and financial engagement is of great importance.”
Mr Stoltenberg highlighted as key decisions the alliance’s agreement to maintain the present level of support beyond this year, firm commitments to continue funding to 2020 and continued backing for “long-term political partnership and practical cooperation with Afghanistan”.
In a joint declaration after the talks, delegates stated: “Our aim remains that Afghanistan will never again become a safe haven for terrorists who can pose a threat to our security, and that it is able to sustain its own security, governance, and economic and social development, while respecting human rights for all of its citizens, notably those of women and children.”
On the threat from ISIL to the Middle East and North Africa, Nato said it would deploy surveillance planes to support the US-led coalition in Iraq and Syria, begin “training and capacity-building” for Iraqi forces, boost cooperation with Jordan, launch a new Mediterranean naval mission and help Libya’s new government devise policies and institutions to protect itself against extremists.
Mr Stoltenberg also mentioned Nato hopes to establish an intelligence centre in Tunisia, a fruitful recruiting ground for ISIL, and provide support to Tunisian special operation forces.
As the summit closed, he hailed the alliance as a “fundamental source of security for our people, and stability for the wider world”.
foreign.desk@thenational.ae
* Additional reporting from Reuters and Associated Press
Rajasthan Royals 153-5 (17.5 ov)
Delhi Daredevils 60-4 (6 ov)
Rajasthan won by 10 runs (D/L method)
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Champions parade (UAE timings)
7pm Gates open
8pm Deansgate stage showing starts
9pm Parade starts at Manchester Cathedral
9.45pm Parade ends at Peter Street
10pm City players on stage
11pm event ends
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.”
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
Mohammed bin Zayed Majlis
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MATCH INFO
Southampton 0
Manchester City 1 (Sterling 16')
Man of the match: Kevin de Bruyne (Manchester City)
World record transfers
1. Kylian Mbappe - to Real Madrid in 2017/18 - €180 million (Dh770.4m - if a deal goes through)
2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m