A Syrian soldier inside the historical city of Palmyra on March 29, 2016. EPA
A Syrian soldier inside the historical city of Palmyra on March 29, 2016. EPA
A Syrian soldier inside the historical city of Palmyra on March 29, 2016. EPA
A Syrian soldier inside the historical city of Palmyra on March 29, 2016. EPA

Why the Syrian regime’s recapture of Palmyra was a political move


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The capture of Palmyra this week was a clear attempt by the regime of Bashar Al Assad to rewrite history.

Damascus and its allies presented the victory as part of the wider campaign to strike extremists in Syria.

In truth, they wanted a victory to strengthen the regime’s political position in the peace talks, after a relentless Russian air campaign helped Mr Al Assad’s forces secure its territory and reorganise its forces to launch offensives against mainstream rebel groups.

The recapture of Palmyra does not mean the regime will now focus on ISIL and Al Qaeda-affiliated Jabhat Al Nusra.

Yet Mr Al Assad has successfully turned the narrative upside down in an attempt to showcase his forces as a bulwark against radicalism.

This cynical plan began shortly after Russia launched its military intervention in September. Some observers visiting Beirut, Damascus, Tehran or Moscow returned with a similar conclusion: that a push to retake Palmyra from ISIL was imminent.

As talk of a Palmyra offensive circulated, western governments estimated that more than 90 per cent of Russian air strikes had hit regular opposition forces, not ISIL.

The floating of a plan for a symbolic victory over ISIL was designed to divert attention from the real objective – weakening the opposition and securing the regime’s heartlands.

The expulsion of ISIL from Palmyra should be welcomed by everyone, including the opposition. But a line should also be drawn between celebrating the survival of the ancient ruins and celebrating a dictator that remorselessly reduced much of his country to rubble. For Syrians, Palmyra is symbolic not only for historical reasons but also because its notorious Tadmur Prison epitomised the regime’s repressive machine.

But it is also for practical reasons that the regime’s claims should be rejected.

Some reports stated that the regime would use Palmyra as a launch pad to retake Deir Ezzor and Raqqa from ISIL, despite the fact Raqqa is located much closer to the regime’s strongholds in Aleppo and Hama than Palmyra. Others inaccurately characterised the regime’s win in Palmyra as the biggest military defeat for ISIL in two years.

Observers should not make the mistake of overstating the regime’s capabilities as they did in February when many thought government forces were about to retake Aleppo.

The capture of Palmyra was primarily a political move. Palmyra and Raqqa have suddenly become strategically important for the regime – part of “useful Syria” – to beef up its position as the most effective force against extremists.

The regime may seek to retake the Tabqa airbase in Raqqa to both assert its “sovereignty” on the only province where the regime has no presence and to demonstrate it is a capable force against extremists, especially as the truce between the government and the rebels persists.

But the mainstream rebels will continue to be its main target, a strategy that has long enabled the rise of extremist forces in Syria.

In December 2014, the British defence think tank IHS Jane’s issued data showing that the regime and ISIL were “ignoring each other”. For Syrians inside the country, such strategy was so evident that many went further to claim the regime and ISIL were working together, especially when the two attacked the rebels at the same time or when the regime targeted the rebels and turned a blind eye to the ISIL bases across the country.

The presence of extremist forces is convenient for the Assad regime as long as the rebels pose a threat to its rule. That it will now turn its attention to destroy ISIL is a fantasy, even if it has the strength and resources to do so.

The capture of Palmyra was a clear prize, given its symbolism for people inside and outside Syria.

Yet the response to the capture of Palmyra revealed the vulnerability of outsiders to the regime’s playing of the extremism card.

By rescuing the “pearl of the desert” from ISIL, the regime and its allies wanted to show they are the defenders of civilisation.

But the regime stands accused of being responsible for the rise of these extremist forces, both directly and indirectly, and failing to defend Palmyra as it did other militarily important areas.

foreign.desk@thenational.ae

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“Technology and education should be the main drivers to make this happen, whether it’s investing in a few clicks or their schools/parents stepping up their personal finance education skills,” he adds.

Mr Chahwan says younger generations have a higher capacity to take on risk, but for some their appetite can be more cautious because they are investing for the first time. “Schools still do not teach personal finance and stock market investing, so a lot of the learning journey can feel daunting and intimidating,” he says.

He advises millennials to not always start with an aggressive portfolio even if they can afford to take risks. “We always advise to work your way up to your risk capacity, that way you experience volatility and get used to it. Given the higher risk capacity for the younger generations, stocks are a favourite,” says Mr Chahwan.

Highlighting the role technology has played in encouraging millennials and Gen Z to invest, he says: “They were often excluded, but with lower account minimums ... a customer with $1,000 [Dh3,672] in their account has their money working for them just as hard as the portfolio of a high get-worth individual.”

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Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar

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Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

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.”