Supporters of Iran-backed Iraqi Shiite Popular Mobilisation Forces carry the pictures of their comrades who were killed in a US air strike near the Iraqi border with Syria. EPA
Supporters of Iran-backed Iraqi Shiite Popular Mobilisation Forces carry the pictures of their comrades who were killed in a US air strike near the Iraqi border with Syria. EPA
Supporters of Iran-backed Iraqi Shiite Popular Mobilisation Forces carry the pictures of their comrades who were killed in a US air strike near the Iraqi border with Syria. EPA
Supporters of Iran-backed Iraqi Shiite Popular Mobilisation Forces carry the pictures of their comrades who were killed in a US air strike near the Iraqi border with Syria. EPA

US has limited options in Iraq as attacks increase


Joyce Karam
  • English
  • Arabic

An increase in attacks against American troops and interests in Iraq and Syria is leaving the Biden administration with limited options as it seeks to set a credible deterrence without being caught in a spiral of violence with pro-Iran militias.

Just this week, six attacks were launched against US troops and diplomats in Iraq and Syria, including two aimed at Ain Al Assad airbase. Two US personnel were injured in the latest of these attacks.

The other assaults, using drones and rockets, hit Erbil airport, the coalition headquarters in Baghdad, a US base in eastern Syria and the Iraqi capital's Green Zone.

The escalation followed last month's US strike on the Iraqi-Syrian border against a pro-Iranian Iraqi militia, killing four of its members. That strike was meant to deter further incidents after five previous attacks on US forces inside Iraq.

Randa Slim, director of the Conflict Resolution and Track II Dialogues Programme at the Middle East Institute, sees the current escalation by Iraqi militias as directly related to the stalled nuclear talks with Iran.

“This is related to current snags in the nuclear talks in Vienna. The attacks on US forces in Iraq and increasingly in Syria have always been part of Tehran’s negotiation leverage on the nuclear file,” Ms Slim told The National.

The US has engaged in six indirect rounds of talks with Iran on the nuclear issue, but no breakthrough that grants Tehran sanctions relief has been achieved. A seventh round is expected in the coming weeks.

The other overarching objective for Tehran is terminating the US military presence in Iraq and Syria, added Ms Slim.

But against the surge in attacks, Washington has few good options, she added, "given the weak government partner it has in Baghdad".

Ms Slim saw three options for the Biden team: continuing to respond to the attacks, with the risk of being trapped in an “escalation spiral” with the militias and Tehran; improving communication with the Iraqi people so they know to pin the blame for the violence on the Iraqi militias and Iran; and linking sanctions relief for Tehran to stopping attacks on US forces in Iraq and Syria.

Iran has continuously rejected this linkage.

But Ranj Alaadin, a senior fellow at the Brookings Institution, pointed to a complex situation inside Iraq and a weakened political system than has allowed these militias to lash out.

“The uptick in attacks comes amid a perilous political environment in Iraq and the vulnerabilities Iran's proxies face amid their internal factionalism and the very real possibility that they will suffer a major political decline after the forthcoming parliamentary elections,” Mr Alaadin told The National.

The elections are scheduled for October and a unified anti-militia front could threaten those groups, he said.

“For Iran's proxies, escalating attacks against the US reinforces a posture of strength and resiliency, and is premised on the idea that the best defence is a good offence,” Mr Alaadin added.

Without an effective US response and the inability of the Iraqi government to confront them, these militias have acquired a “dangerous luxury to adopt scorched-earth policies to secure their own survival and the interests of the Iranian regime".

Mr Alaadin recommended a stronger response from the US side.

“The Biden administration has not yet given Iran’s proxies a reason to look [over] their shoulders; attacking them and inflicting significant casualties could potentially raise the risk calculus for Iran and its proxies, and indicate that the US does have the resolve to contain these groups and establish its own red lines,” he said.

Iraqi Prime Minister Mustafa Al Kadhimi is expected to visit the White House at the end of the month.

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.”

UAE tour of the Netherlands

UAE squad: Rohan Mustafa (captain), Shaiman Anwar, Ghulam Shabber, Mohammed Qasim, Rameez Shahzad, Mohammed Usman, Adnan Mufti, Chirag Suri, Ahmed Raza, Imran Haider, Mohammed Naveed, Amjad Javed, Zahoor Khan, Qadeer Ahmed
Fixtures:
Monday, 1st 50-over match
Wednesday, 2nd 50-over match
Thursday, 3rd 50-over match

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THE SPECS

Engine: 2.0-litre 4-cylinder turbo

Power: 275hp at 6,600rpm

Torque: 353Nm from 1,450-4,700rpm

Transmission: 8-speed dual-clutch auto

Top speed: 250kph

Fuel consumption: 6.8L/100km

On sale: Now

Price: Dh146,999

Kandahar%20
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Company%20profile
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The specs

Engine: 1.6-litre 4-cyl turbo

Power: 217hp at 5,750rpm

Torque: 300Nm at 1,900rpm

Transmission: eight-speed auto

Price: from Dh130,000

On sale: now

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Day 1 results:

Open Men (bonus points in brackets)
New Zealand 125 (1) beat UAE 111 (3)
India 111 (4) beat Singapore 75 (0)
South Africa 66 (2) beat Sri Lanka 57 (2)
Australia 126 (4) beat Malaysia -16 (0)

Open Women
New Zealand 64 (2) beat South Africa 57 (2)
England 69 (3) beat UAE 63 (1)
Australia 124 (4) beat UAE 23 (0)
New Zealand 74 (2) beat England 55 (2)

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The specs

Engine: 3.5-litre twin-turbo V6

Power: 380hp at 5,800rpm

Torque: 530Nm at 1,300-4,500rpm

Transmission: Eight-speed auto

Price: From Dh299,000 ($81,415)

On sale: Now

COMPANY PROFILE

Name: Qyubic
Started: October 2023
Founder: Namrata Raina
Based: Dubai
Sector: E-commerce
Current number of staff: 10
Investment stage: Pre-seed
Initial investment: Undisclosed 

Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
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Directors: Raj & DK

Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

The specs

Engine: 2-litre 4-cylinder and 3.6-litre 6-cylinder

Power: 220 and 280 horsepower

Torque: 350 and 360Nm

Transmission: eight-speed automatic

Price: from Dh136,521 VAT and Dh166,464 VAT 

On sale: now

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Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
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  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
Key facilities
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  • Premier League-standard football pitch
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Updated: July 08, 2021, 6:45 PM