The volume of international deliveries of major arms was flat over the past five years, ending more than a decade of growth, according to new data.
The volume of international transfers of major arms in 2016-20 was 0.5 per cent lower than in 2011-15, the Stockholm International Peace Research Institute (Sipri) said in a new report. This is the first time since 2001-2005 that the volume of arms transfers between nations did not increase on the previous five-year period, the data showed.
Middle East nations accounted for the biggest rise in arms deliveries.
Arms imports by states in the Middle East were 25 per cent higher in 2016-20 than in 2011-15. Four of the top 10 arms-importing countries in 2016-20 are in the Middle East: Saudi Arabia, Egypt, Qatar and the UAE.
The US accounted for 52 per cent of arms exports to states in the region, while Russia supplied 13 per cent and France 12 per cent, the report showed.
Globally, the "five largest arms importers were Saudi Arabia, India, Egypt, Australia and China", Sipri said in its Trends in International Arms Transfers report. These nations collectively received 36 per cent of total arms imports in 2016-2020.
Saudi Arabia, the world’s largest arms importer in 2016-2020, received 11 per cent of global arms imports, Sipri said. The US provided 79 per cent of the kingdom's arms imports during the period, followed by the UK with 9.3 per cent and France with 4 per cent.
The kingdom increased its arms imports during the five-year period by 61 per cent, the data showed.
The UAE has been among the world’s top 10 arms importers since 2001-2005 but its imports in the 2016-20 period were 37 per cent lower than in 2011-15, the report said.
"Outstanding deliveries at the end of 2020 – including for 2 frigates from France as well as air defence systems and 38 combat helicopters from the USA – indicate that the UAE’s arms imports will continue to be at a high level in the coming years," the report said.
The UAE recently signed an agreement with the US to buy 50 F-35 jets and up to 18 armed drones as part of a $23 billion deal.
"If deliveries of these aircraft are implemented as planned, the UAE’s arms imports will increase in the second half of the 2020s," the authors said.
The world's five largest arms exporters in 2016-20 were the US, Russia, France, Germany and China, accounting for 76 per cent of all arms exports, Sipri said. The US, France and Germany increased their arms exports during the period, while Russia and China saw their exports drop.
At the regional level, Asia and Oceania accounted for 42 per cent of arms imports in 2016-20, followed by the Middle East with 33 per cent, Europe with12 per cent, Africa at 7.3 per cent and the Americas at 5.4 per cent, the report showed.
Sipri presents arms transfer data for five-year periods to give a more stable measure of trends given the significant year-on-year fluctuations in international transfers, the research agency said.
The value of global arms transfers last year was exceptionally low – 16 per cent lower than in 2019 and 20 per cent below the annual average for the previous nine years, it said.
This may partly be due to the Covid-19 pandemic – which disrupted some arms companies’ planned production and delivery schedules – and the related economic crisis, Sipri said.
The drop in arms transfers in 2020 was also due to other factors including national procurement cycles, gaps in deliveries during shifting relations between suppliers and buyers, and economic conditions unrelated to the pandemic, it added.
Sipri said the uncertainty about whether the pandemic was a major cause for the fall in arms transfers in 2020 is underscored by the fact that several states actually had higher levels of arms deliveries in 2020 than in prior years.
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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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Classification of skills
A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation.
A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.
The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000.
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Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
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
Yemen's Bahais and the charges they often face
The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.
The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran.
Today, some 2,000 Baha'is reside in Yemen, according to Insaf.
"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said.
Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer.
The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy.
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THE BIG THREE
NOVAK DJOKOVIC
19 grand slam singles titles
Wimbledon: 5 (2011, 14, 15, 18, 19)
French Open: 2 (2016, 21)
US Open: 3 (2011, 15, 18)
Australian Open: 9 (2008, 11, 12, 13, 15, 16, 19, 20, 21)
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20 grand slam singles titles
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French Open: 1 (2009)
US Open: 5 (2004, 05, 06, 07, 08)
Australian Open: 6 (2004, 06, 07, 10, 17, 18)
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RAFAEL NADAL
20 grand slam singles titles
Wimbledon: 2 (2008, 10)
French Open: 13 (2005, 06, 07, 08, 10, 11, 12, 13, 14, 17, 18, 19, 20)
US Open: 4 (2010, 13, 17, 19)
Australian Open: 1 (2009)
Prize money: $125m