US Secretary of State Antony Blinken arrives in Nadi, Fiji, for a meeting with leaders of Pacific nations. Photo: AFP
US Secretary of State Antony Blinken arrives in Nadi, Fiji, for a meeting with leaders of Pacific nations. Photo: AFP
US Secretary of State Antony Blinken arrives in Nadi, Fiji, for a meeting with leaders of Pacific nations. Photo: AFP
US Secretary of State Antony Blinken arrives in Nadi, Fiji, for a meeting with leaders of Pacific nations. Photo: AFP

US to reopen Solomon Islands embassy in effort to counter China


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The US said it will open an embassy in the Solomon Islands in an effort to increase its influence in the South Pacific nation before China becomes “strongly embedded” there.

The plan was confirmed by US Secretary of State Antony Blinken on Saturday during a visit to Fiji on a Pacific tour that began in Australia.

Mr Blinken left Fiji for Hawaii, where he will host the foreign ministers of Japan and South Korea to discuss the threat posed by North Korea, amid rising concerns over its recent missile tests.

The State Department said Solomon Islanders cherished their history with Americans on the battlefields of the Second World War, but that the US was in danger of losing its preferential ties as China “aggressively seeks to engage” elite politicians and business people in the Solomon Islands.

Rioting rocked the nation of 700,000 in November. It grew from a peaceful protest and highlighted long-simmering regional rivalries, economic problems and concerns about the country’s increasing links with China after it switched allegiance from the self-ruled island of Taiwan to Beijing three years ago. Rioters set fire to buildings and looted stores.

Solomon Islands Prime Minister Manasseh Sogavare survived a no-confidence vote the following month. In a 90-minute speech, he said that he had done nothing wrong and would not bow down to “the forces of evil” or to “Taiwan’s agents”.

U. S. Secretary of State Antony Blinken watches a cultural farewell ceremony after a visit to Nadi, Fiji, on February 12, 2022. AP
U. S. Secretary of State Antony Blinken watches a cultural farewell ceremony after a visit to Nadi, Fiji, on February 12, 2022. AP

The US operated an embassy in the Solomons for five years before closing it in 1993. Since then, US diplomats from neighbouring Papua New Guinea have been accredited to the Solomons, which has a US consular agency.

The embassy announcement fits with a new Biden administration strategy for the Indo-Pacific that was announced on Friday and emphasises building partnerships with allies in the region as a way to counter China’s influence and ambitions.

In its notification to Congress, the State Department said China had been “utilising a familiar pattern of extravagant promises, prospective costly infrastructure loans, and potentially dangerous debt levels” when engaging with political and business leaders from the Solomon Islands.

The State Department said it did not expect to build a new embassy immediately but would at first lease space at an initial set-up cost of $12.4 million. The embassy would be located in the capital, Honiara, and would start small, with two US employees and about five local staff.

It said the Peace Corps planned to reopen an office in the Solomon Islands and have its volunteers serve there, and that several US agencies were establishing government positions with portfolios in the Solomons.

“The department needs to be part of this increased US presence, rather than remaining a remote player,” it wrote.

US Secretary of State Antony Blinken, left, attends a meeting with Fijian Acting Prime Minister Aiyaz Sayed-Khaiyum, right, in Nadi, Fiji. AFP
US Secretary of State Antony Blinken, left, attends a meeting with Fijian Acting Prime Minister Aiyaz Sayed-Khaiyum, right, in Nadi, Fiji. AFP

During his visit to Fiji, Mr Blinken met acting prime minister Aiyaz Sayed-Khaiyum and other Pacific leaders to talk about regional issues, especially the risk posed by climate change. It was the first visit by a US secretary of state to Fiji since 1985.

Mr Sayed-Khaiyum said he welcomed renewed US engagement and President Joe Biden’s move last year to rejoin the Paris climate agreement. In the past, he said, Pacific island nations had sometimes felt overlooked by larger nations as “flyover” countries.

“Small dots spotted from plane windows of leaders, en route to meetings where they spoke about us rather than with us, if they spoke of us at all,” he said.

Mr Blinken and the Pacific leaders also spoke about the coronavirus pandemic and disaster assistance.

He visited Fiji after leaving the Australian city of Melbourne, where he had a meeting with his counterparts from Australia, India and Japan. The four nations form the so-called Quad, a bloc of Indo-Pacific democracies that was created to address China’s regional influence.

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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.”

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March 4-8: First Test, Rawalpindi

March 12-16: Second Test, Karachi

March 21-25: Third Test, Lahore

March 29: First ODI, Rawalpindi

March 31: Second ODI, Rawalpindi

April 2: Third ODI, Rawalpindi

April 5: T20I, Rawalpindi

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2. Marcel Kittel (Germany / Quick-Step) 81

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Know before you go
  • Jebel Akhdar is a two-hour drive from Muscat airport or a six-hour drive from Dubai. It’s impossible to visit by car unless you have a 4x4. Phone ahead to the hotel to arrange a transfer.
  • If you’re driving, make sure your insurance covers Oman.
  • By air: Budget airlines Air Arabia, Flydubai and SalamAir offer direct routes to Muscat from the UAE.
  • Tourists from the Emirates (UAE nationals not included) must apply for an Omani visa online before arrival at evisa.rop.gov.om. The process typically takes several days.
  • Flash floods are probable due to the terrain and a lack of drainage. Always check the weather before venturing into any canyons or other remote areas and identify a plan of escape that includes high ground, shelter and parking where your car won’t be overtaken by sudden downpours.

 

Updated: February 12, 2022, 1:39 PM