The top commander in charge of US forces in the Middle East said on Tuesday that some of the 3,500 American troops set to leave Afghanistan by September 11 will probably remain in the region.
“I think some of the forces are going to remain in Central Command because we are going to look at offshore, over-the-horizon operations, and that’s going to require some different things,” Central Command's Gen Kenneth McKenzie testified to Congress.
“Nothing on the scale and expenditures that you’re seeing now in Afghanistan of course, but we still need to do some things there as well.
“But I think broadly it’s going to be a significant lever for the department to apply against what, I agree, are some of the more significant challenges that we face to date.”
Gen McKenzie said the US would continue with counter-terrorism operations in Afghanistan but identified China and Russia as some of the more pressing threats facing the Defence Department.
It remains unclear where in the region the US can post military for future counter-terrorism operations in Afghanistan.
Gen McKenzie said the administration of President Joe Biden did not have agreements with neighbouring countries to station US forces.
That could hinder Washington’s ability to conduct air strikes and surveillance operations in Afghanistan after the withdrawal.
“Right now, we’re engaged in a significant effort to evaluate where we want to put potential forces where they’d be best optimised in geography and also the diplomatic angle of it as we go forward,” he said.
He said Defence Secretary Lloyd Austin has instructed him to prepare a "detailed" plan by the end of April, outlining options for future counter-terrorism operations in Afghanistan.
Acting defence secretary Amanda Dory promised to provide members of Congress with more specific details on those options in a classified part of the House of Representatives briefing.
At the same time as Gen McKenzie was testifying, US special envoy for Afghanistan Zalmay Khalilzad briefed members of the House behind closed doors.
Mr Khalilzad briefed senators in camera on Monday.
“I share the president’s desire to get our troops out of Afghanistan,” Democrat Bob Menendez, chairman of the Senate foreign relations committee, said after Mr Khalilzad’s testimony.
"But I continue to have concerns about our ability to protect the hard-fought gains made for the rights of Afghan women and minorities, as well as our confidence level that Afghanistan will not again become a haven for terrorists.
“How we withdraw and what political arrangement is left in our wake is critically important.”
Mr Menendez pledged to hold a public Senate hearing on the Afghanistan withdrawal within “the coming weeks".
Senate minority leader Mitch McConnell voiced many of the same concerns, albeit with more scathing language, as Biden administration officials made their rounds on Capitol Hill.
“Does the administration have a plan for keeping terrorists off balance in the absence of troops and leverage in the region?” Mr McConnell asked the Senate on Tuesday.
“Does the Taliban share the administration’s commitment to a negotiated solution? To not harming Afghan women and girls or seeking vengeance on those who’ve worked with the US to root out terror? Somehow I doubt it.”
The agreement the Trump administration brokered with the Taliban last year in Qatar required the group to severe ties with Al Qaeda and other terrorist groups in exchange for the departure of US forces by May 1.
The Biden administration is starting the withdrawal on May 1 and has pledged that it will be finished by September 11.
But the Taliban has already issued thinly veiled threats against foreign forces that remain in Afghanistan past the May 1 deadline.
“I have grave doubts about the Taliban’s reliability,” said Gen McKenzie. “But we need to see what they’re going to do here.
“The fact of the matter is if – let’s say we leave. If they want any form of future international recognition for Afghanistan, if they want any form of international support, they’re going to have to keep the agreements they’ve made.”
He gave a more concrete assessment of counter-terrorism operations in Iraq, where US troops in the counter-ISIS mission have become the frequent target of fire from Iran-backed militias who hope to push them out of the country.
“I don’t see us completely withdrawing from Iraq in the future,” Gen McKenzie said.
The US and Iraq hinted at the withdrawal of US combat forces from the country as part of a strategic dialogue this month.
But the vast majority of the 2,500 troops stationed there are supporting the Iraqi Security Forces in an advisory, rather than combat, capacity.
That suggests the agreement is unlikely to result in a significant withdrawal of US troops from Iraq.
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.”
Company profile
Name: Steppi
Founders: Joe Franklin and Milos Savic
Launched: February 2020
Size: 10,000 users by the end of July and a goal of 200,000 users by the end of the year
Employees: Five
Based: Jumeirah Lakes Towers, Dubai
Financing stage: Two seed rounds – the first sourced from angel investors and the founders' personal savings
Second round raised Dh720,000 from silent investors in June this year
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
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War 2
Director: Ayan Mukerji
Stars: Hrithik Roshan, NTR, Kiara Advani, Ashutosh Rana
Rating: 2/5
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
COMPANY PROFILE
Name: Mamo
Year it started: 2019 Founders: Imad Gharazeddine, Asim Janjua
Based: Dubai, UAE
Number of employees: 28
Sector: Financial services
Investment: $9.5m
Funding stage: Pre-Series A Investors: Global Ventures, GFC, 4DX Ventures, AlRajhi Partners, Olive Tree Capital, and prominent Silicon Valley investors.
The specs
Price, base / as tested Dh100,000 (estimate)
Engine 2.4L four-cylinder
Gearbox Nine-speed automatic
Power 184bhp at 6,400rpm
Torque 237Nm at 3,900rpm
Fuel economy, combined 9.4L/100km
Company%20Profile
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