Mariam Al Mansouri, a fighter pilot with the UAE air force, epitomised the GCC’s response to ISIL. Wam
Mariam Al Mansouri, a fighter pilot with the UAE air force, epitomised the GCC’s response to ISIL. Wam

Year in review 2014: GCC fortified by turbulent year



The six GCC countries displayed a new assertiveness in 2014, despite an unprecedented internal dispute that threatened the group's unity. Air strikes were launched on Islamist militants in northern Syria by several GCC countries and two of them formally designated the Muslim Brotherhood a terrorist organisation.

Such direct actions were previously unheard of in the history of the Gulf Cooperation Council, which for decades has made a careful point of exerting influence quietly.

It was the rise of ISIL and the eruption of turmoil and violence across the region that prompted a surprise shift towards a regional strategy that analysts described as projecting force to counter threats before they hit home.

The changes came amid revelations about how deep the differences among some of the GCC governments ran. GCC diplomats described the countries as “brothers” that could squabble especially hard.

The opposing stances exploded into public view in March when the UAE, Saudi Arabia and Bahrain withdrew their ambassadors from Qatar.

The rupture in diplomatic ties stemmed mainly from Qatar's support for the Muslim Brotherhood. Qatar viewed the group as a conduit for increasing its regional clout. The UAE and Saudi Arabia viewed the group as a destabilising force, even though it had a presence in Arabian Gulf parliaments. Qatar was also accused of interfering in the affairs of other Gulf states. Among the allegations was Doha-based preacher Yusuf Al Qaradawi using his show on Qatar's Al Jazeera television to criticise the UAE's stance on Egypt, angering Emirati officials.

The UAE, along with Saudi Arabia, had backed the Egyptian military’s removal of Islamist president Mohammed Morsi in July 2013, while Qatar had supported him during the Brotherhood’s short-lived time in power.

The “GCC dispute”, as it became known, raged for months, despite the best efforts of Kuwait and Oman to mediate. Some speculated that border crossings with Qatar might be closed or economic sanctions imposed.

In September, in a move towards reconciliation, Qatar announced that it would expel several members of the Brotherhood from Doha.

Still, as the end of the year approached, doubts were raised that the GCC’s annual summit, scheduled to be held in Doha, would go ahead. Qatar was also expected to assume the GCC’s rotating presidency for 2015.

Analysts said it would be difficult for the summit to go ahead while the diplomatic feud was unresolved.

In March, Saudi Arabia had designated the Muslim Brotherhood a terrorist organisation, a move followed by the UAE in November.

A meeting of GCC foreign ministers on November 10 was postponed. Tensions had risen so high that there were rumours that Qatar might even be expelled from the group.

Such a crisis was only averted after Saudi Arabia's King Abdullah called for an extraordinary meeting of GCC states in Riyadh on November 16.

Leaders from every Gulf country except Oman attended the gathering. The widely respected King Abdullah felt that either the pressure on Qatar must be intensified, possibly to a breaking point, or that reconciliation must happen, according to Mustafa Alani, the director of security and defence studies at the Geneva-based Gulf Research Centre.

“King Abdullah thought that you either have to compromise to maintain the unity of the GCC or escalate the internal conflict, which basically could lead to the disintegration of the GCC. I think this is the reason why he put his weight behind this issue.”

Qatar reportedly convinced the other states that it would honour a previous agreement not to interfere in the affairs of other states.

“The agreement was basically that, based on the collective security of the GCC, the behaviour of one single state should not undermine the security of the other members,” Alani says. “You can find this in any regional or international structure.” The GCC summit went ahead successfully in December, with Qatar assuming the presidency.

The GCC was established in 1981 with the goal to unify policies among the member states.

The main reason behind the 2014 push for GCC unity, despite some still existing differences, was the consensus that the states best faced the growing regional challenges together.

From the wars in Syria and Iraq to the unrest in Yemen and the ambitions of Iran, along with the threat of terrorism at home, the GCC states faced a series of trials unlike anything they had faced before.

The United States, the traditional security guarantor in the region, was shifting resources away from the Middle East and reorienting its positioning towards East Asia.

The ongoing negotiations between world powers and Iran over Tehran’s nuclear programme might also result in a historic deal that could change the status quo in the region.

The exact terms of a possible agreement with Iran, a regional rival, were less of a problem than what it might do for Tehran's regional ambitions. There was the question of what Iran would get out of an eventual deal "not on the nuclear front, but on the regional front", the Minister of Foreign Affairs Sheikh Abdullah bin Zayed said in an interview.

The region was changing very quickly and the GCC found itself needing to project power to defend itself from the growing number of threats.

Abdullah Al Murad, a former Kuwaiti ambassador to the United Nations, told The National that in 2015 the GCC would focus much more on military matters.

He highlighted the threats posed by Yemen, Iran, Syria, and Iraq. “It’s time to focus on military issues,” he said.

To accomplish this, the GCC states announced the establishment of a regional police force based in Abu Dhabi, and a joint naval force based out of Bahrain. A joint military command is likely to also be formed after further discussions.

“It will be an Interpol-like force but inside GCC countries,” Qatari foreign minister Khalid bin Mohammed Al Attiyah said of the police force, which is to be called GCC-Pol.

The establishment of such a force also highlights the threat the states see from their own citizens who might become radicalised.

“If Afghanistan was a primary school for terrorists, then Syria and Iraq are a university for them – these are serious threats and lots of people from our country have gone and joined them,” Bahraini foreign minister Sheikh Khalid Al Khalifa told the Financial Times.

For years, the GCC states preferred to play a quiet role. Staying out of the headlines was part of a defensive strategy that aimed to deter both attention and attacks.

But times change. In recent years, the GCC states have spent billions of dollars on weapons and training for their militaries.

In 2013, Saudi Arabia was the world’s fourth-largest military spender, purchasing weaponry worth US$67 billion (Dh246bn).

Riyadh had ranked seventh in 2012’s study by the Stockholm International Peace Research Institute.

Across the Middle East, military spending in 2013 reached an estimated $150bn, a 4 per cent increase over 2012.

Every GCC state joined the US-led coalition against ISIL. The most militarily-capable – the UAE, Saudi Arabia, Bahrain and Qatar – also sent jets to attack the group in northern Syria. Air force pilots such as Mariam Al Mansouri and Saudi prince Khaled bin Salman carried out strikes on ISIL.

The states were concerned not only about the chaos that the group was creating in Iraq and Syria, but also about the potential for unrest at home.

ISIL's goal was to eventually spread its self-declared caliphate across the region, including the Arabian Gulf. The group's chief Abu Bakr Al Baghdadi had singled out Saudi Arabia for attacks. Sympathisers were listening. The group claimed an attack that wounded a Danish citizen in Riyadh on November 22.

The group was also implicated in the November 5 killing of eight Shiites in Saudi Arabia’s eastern province.

The attacks occurred despite Saudi Arabia arresting dozens of citizens and foreigners over the past year on suspicions that they had links to Islamist groups.

Some of those arrested were said to be planning to carry out attacks inside the country.

Differences remain, but the GCC has banded together after a year of turmoil to face a dangerous region together.

Justin Vela is Gulf Correspondent at The National.

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

GAC GS8 Specs

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Transmission: 8-speed auto

Fuel consumption: 9.1L/100km

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'Top Gun: Maverick'

Rating: 4/5

 

Directed by: Joseph Kosinski

 

Starring: Tom Cruise, Val Kilmer, Jennifer Connelly, Jon Hamm, Miles Teller, Glen Powell, Ed Harris

 
The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

UAE currency: the story behind the money in your pockets
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Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

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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Other acts on the Jazz Garden bill

Sharrie Williams
The American singer is hugely respected in blues circles due to her passionate vocals and songwriting. Born and raised in Michigan, Williams began recording and touring as a teenage gospel singer. Her career took off with the blues band The Wiseguys. Such was the acclaim of their live shows that they toured throughout Europe and in Africa. As a solo artist, Williams has also collaborated with the likes of the late Dizzy Gillespie, Van Morrison and Mavis Staples.
Lin Rountree
An accomplished smooth jazz artist who blends his chilled approach with R‘n’B. Trained at the Duke Ellington School of the Arts in Washington, DC, Rountree formed his own band in 2004. He has also recorded with the likes of Kem, Dwele and Conya Doss. He comes to Dubai on the back of his new single Pass The Groove, from his forthcoming 2018 album Stronger Still, which may follow his five previous solo albums in cracking the top 10 of the US jazz charts.
Anita Williams
Dubai-based singer Anita Williams will open the night with a set of covers and swing, jazz and blues standards that made her an in-demand singer across the emirate. The Irish singer has been performing in Dubai since 2008 at venues such as MusicHall and Voda Bar. Her Jazz Garden appearance is career highlight as she will use the event to perform the original song Big Blue Eyes, the single from her debut solo album, due for release soon.

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General%20Classification
%3Cp%3E1.%20Elisa%20Longo%20Borghini%20(ITA)%20Trek-Segafredo%3Cbr%3E2.%20Gaia%20Realini%20(ITA)%20Trek-Segafredo%207%20secs%3Cbr%3E3.%20Silvia%20Persico%20(ITA)%20UAE%20Team%20ADQ%201%20min%2018%20secs%3C%2Fp%3E%0A
'Panga'

Directed by Ashwiny Iyer Tiwari

Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta

Rating: 3.5/5

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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Mobile phone packages comparison
Stage 2 results

Caleb Ewan (AUS) Lotto Soudal 04:18:18

Sam Bennett (IRL) Deceuninck-QuickStep 00:00:02

Arnaud Demare (FRA) Groupama-FDJ 00:00:04

4 Diego Ulissi (ITA) UAE Team Emirates

5 Rick Zabel (GER) Israel Start-Up Nation

General Classification

Caleb Ewan (AUS) Lotto Soudal 07:47:19

2 Sam Bennett (IRL) Deceuninck-QuickStep 00:00:12

3 Arnaud Demare (FRA) Groupama-FDJ 00:00:16

4 Nikolai Cherkasov (RUS) Gazprom-Rusvelo 00:00:17

5 Alexey Lutsensko (KAZ) Astana Pro Team 00:00:19

The Equaliser 2

Director Antoine Fuqua

Starring: Denzel Washington, Bill Pullman, Melissa Leo, Ashton Sanders

Three stars

Barbie
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Greta%20Gerwig%3Cbr%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20Margot%20Robbie%2C%20Ryan%20Gosling%2C%20Will%20Ferrell%2C%20America%20Ferrera%3Cbr%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%204%2F5%3Cbr%3E%3C%2Fp%3E%0A
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5