A severely burned young boy is fed as he lies in the intensive care unit of a hospital in the rebel-held area of Douma, east of the capital Damascus, following reported mortar shelling by Syrian government forces on August 28, 2015. Abd Doumany/AFP Photo
A severely burned young boy is fed as he lies in the intensive care unit of a hospital in the rebel-held area of Douma, east of the capital Damascus, following reported mortar shelling by Syrian government forces on August 28, 2015. Abd Doumany/AFP Photo
A severely burned young boy is fed as he lies in the intensive care unit of a hospital in the rebel-held area of Douma, east of the capital Damascus, following reported mortar shelling by Syrian government forces on August 28, 2015. Abd Doumany/AFP Photo
A severely burned young boy is fed as he lies in the intensive care unit of a hospital in the rebel-held area of Douma, east of the capital Damascus, following reported mortar shelling by Syrian gover

Why Russia won’t remove Assad from power


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Russia’s latest diplomatic drive to reach common ground with Saudi Arabia on the Syrian conflict broke down on the persisting question of president Bashar Al Assad’s fate.

Following talks in Moscow two weeks ago, Saudi Arabian foreign minister Adel Al Jubeir made clear the kingdom would not coordinate with the Assad regime in the fight against ISIL, insisting that "there is no place for Assad in the future of Syria".

Speaking a week later following talks with Iran’s foreign minister Javad Zarif, Russia’s top diplomat Sergei Lavrov reiterated Moscow’s opposition to calls for Mr Al Assad’s removal as a condition for talks on a transitional process.

The role of Mr Al Assad has remained a constant sticking point between foreign powers in the bloody conflict. The calamitous consequences of the war, including over 240,000 dead, more than 9 million displaced and the emergence of terror groups such as ISIL and Jabhat Al Nusra, have so far failed to sway foreign powers to reach a compromise on the Syrian conflict.

"Nobody is on the same page, there is zero agreement on who should win and what should be exchanged," Joshua Landis, Syria expert and director of the Centre for Middle East Studies at the University of Oklahoma, told The National.

Mr Lavrov’s remarks spurn speculation that Russia might consider supporting the removal of Mr Al Assad as part of a transitional deal.

Paul Saunders, executive director of the Centre for the National Interest in Washington, said the Kremlin’s continued support for Mr Al Assad is about “saving face” and “exercising Russian influence in Syria.

"Moscow would not have much leverage over Assad if the Russian government attempted to persuade him to step down," he told The National, adding that Mr Al Assad remaining in power for a transitional period would provide Russia with extra negotiating room.

Russia and Iran have become more dependent on Mr Al Assad as the conflict has dragged on, and as the threat posed by ISIL and other extremist groups grows, according to Mr Landis.

“The regime is in a very delicate state. If he were to leave, it might collapse entirely, therefore their (Russia and Iran) entire position would be wiped out,” Mr Landis said.

Any attempt by Russia or Iran to orchestrate an internal coup within the regime to remove Mr Al Assad, while retaining the state apparatus, would likely fail, according to both Mr Landis and Mr Saunders.

“A move like this could fragment what remains of the Syrian government leading to its collapse,” Mr Saunders said, a nightmare scenario Russia is keen to avoid.

“So long as the Assad regime endures, it prevents the Islamic State from consolidating its hold over the whole country,” Mr Saunders added.

Mr Landis believes Moscow and Tehran simply do not have the ability to force the kind of in-house regime-change many in the Syrian opposition hope can be done.

“In order to get Assad to step aside, you have to get the Alawite generals to stand up to him the way the military in Egypt did to Mubarak, point their guns at him, and say he has no choice. The Alawite generals are not going to do that,” he said.

Anas Joudeh, a member of the internal opposition based in Damascus, also expressed caution at any sudden attempt to remove Assad.

“Why does one think that the departure of Assad will end the war? Removing the president cannot be a condition for the transition, but it can be a result of it,” he said.

The basis of Mr Al Assad’s support does not only stem from the backing of Moscow and Tehran, but also the strong support the Syrian president still enjoys from the country’s military, political and business elites, Mr Landis said.

“The Sunni, urban elites still by and large support Assad, which is why he still controls all the major cities. It’s not just brutal force.”

The continuing support from elites, in addition to the large following he enjoys in regime-held areas, makes any attempt to remove Mr Al Assad all the more difficult.

He has also made sure no suitable alternatives will arise that might prompt Russia and Iran to rethink their support of his presidency.

Mr Landis noted the case of veteran opposition figure, Abdelaziz Al Khayyer, a prominent Alawite who was promptly arrested and disappeared by the regime in 2012 following successful trips to Russia and China.

“Assad showed them (Russia, Iran and China), it’s either me or nothing, and that’s been the Assad strategy, that’s why he wipes out all of his liberal opposition and he keeps his most loyal lieutenants divided.”

foreign.desk@thenational.ae

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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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What is a robo-adviser?

Robo-advisers use an online sign-up process to gauge an investor’s risk tolerance by feeding information such as their age, income, saving goals and investment history into an algorithm, which then assigns them an investment portfolio, ranging from more conservative to higher risk ones.

These portfolios are made up of exchange traded funds (ETFs) with exposure to indices such as US and global equities, fixed-income products like bonds, though exposure to real estate, commodity ETFs or gold is also possible.

Investing in ETFs allows robo-advisers to offer fees far lower than traditional investments, such as actively managed mutual funds bought through a bank or broker. Investors can buy ETFs directly via a brokerage, but with robo-advisers they benefit from investment portfolios matched to their risk tolerance as well as being user friendly.

Many robo-advisers charge what are called wrap fees, meaning there are no additional fees such as subscription or withdrawal fees, success fees or fees for rebalancing.

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Year of birth: 1988

Place of birth: Baghdad

Education: PhD student and co-researcher at Greifswald University, Germany

Hobbies: Ping Pong, swimming, reading

 

 

Our legal columnist

Name: Yousef Al Bahar

Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994

Marital status: Single

Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers

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Champions League quarter-final, first leg

Ajax v Juventus, Wednesday, 11pm (UAE)

Match on BeIN Sports

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Saturday, April 20: 11am to 7pm - Abu Dhabi World Jiu-Jitsu Festival and Para jiu-jitsu.

Sunday, April 21: 11am to 6pm - Abu Dhabi World Youth (female) Jiu-Jitsu Championship.

Monday, April 22: 11am to 6pm - Abu Dhabi World Youth (male) Jiu-Jitsu Championship.

Tuesday, April 23: 11am-6pm Abu Dhabi World Masters Jiu-Jitsu Championship.

Wednesday, April 24: 11am-6pm Abu Dhabi World Professional Jiu-Jitsu Championship.

Thursday, April 25: 11am-5pm Abu Dhabi World Professional Jiu-Jitsu Championship.

Friday, April 26: 3pm to 6pm Finals of the Abu Dhabi World Professional Jiu-Jitsu Championship.

Saturday, April 27: 4pm and 8pm awards ceremony.

UAE currency: the story behind the money in your pockets

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