Qatar's defiant rhetoric is increasingly resembling the tone taken by Tehran. Urbanmyth / Alamy Stock Photo
Qatar's defiant rhetoric is increasingly resembling the tone taken by Tehran. Urbanmyth / Alamy Stock Photo

Judge Qatar by the tone of its voice



Does Qatar have any interest in resolving the crisis it has provoked in the region? Its conduct leaves us in no doubt as to its intentions. Doha's behaviour has gone from bad to worse since the Arab quartet – Saudi Arabia, UAE, Bahrain and Egypt – called on Doha to abandon its sponsorship of extremists and reverse its policies of destabilisation in June.

First, Qatar tried to play the innocent victim. But as proof of its complicity in fuelling instability and terrorism began to mount, Doha changed tack. It made incendiary statements about Hajj and tried in vain to internationalise the dispute. It even attempted to make use of its soft power and money to lure western capitals to its side. None of this has worked. And yet instead of opting for conciliation, Qatar has chosen verbal combat, adopting a bellicose tone and intensifying tensions with a tone of defiance.

Tuesday's press conference in Doha, in which Qatar's foreign minister, Sheikh Mohammed bin Abdulrahman Al-Thani, accused the quartet of fomenting tensions is a case in point. The reality is simply that the quartet has given Qatar numerous opportunities to bring this crisis to an end – only to be rebuffed on each occasion. In its rhetoric and truculent posturing, Qatar is beginning increasingly to resemble Iran, a pariah state with a record of financing terrorism and destabilising the region. Perhaps encouraged by this rift, Iran lashes out at sanctions and threatens to abandon the nuclear deal.

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Qatar clearly believes that its confrontational behaviour and aggressive rhetoric serves its long-term interests. It is profoundly mistaken. As the UAE's Minister of State for Foreign Affairs, Dr Anwar Gargash, stated on Twitter on Tuesday, "Qatar is burning bridges with its neighbours, and is banking on external influences to mediate the crisis, which will result in deepening the crisis". The resolve of the quartet to hold Qatar to account will not be weakened just because Doha drags this out or supplicates to external parties to come to its aid. If anything, Doha is making matters worse for itself. It can no longer conceal its history of support for terrorism. A recent report in the pan-Arab newspaper Asharq Alawsat, for instance, revealed how Qatar had plotted with Iran and Hizbollah to ignite a war in the southern borderlands of Saudi Arabia.

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Bahrain says Qatar's media is making diplomatic crisis worse

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On Tuesday, Bahrain's minister of information, Ali Al Rumaihi, lamented Qatar's evident disdain for "the kinship of the Arabian Gulf countries". Doha's fanning of the flames is in stark contrast to the regional efforts to douse the flames. Qatar must realise the importance of a measured and pragmatic tone. Contrary to what Doha claims, the Arab states have not behaved unreasonably. Also on Tuesday, Dr Gargash once again urged Qatar's leadership to visit Riyadh and negotiate the demands placed before it by the quartet. Doha should heed his call.

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THE LIGHT

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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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Top tips

Create and maintain a strong bond between yourself and your child, through sensitivity, responsiveness, touch, talk and play. “The bond you have with your kids is the blueprint for the relationships they will have later on in life,” says Dr Sarah Rasmi, a psychologist.
Set a good example. Practise what you preach, so if you want to raise kind children, they need to see you being kind and hear you explaining to them what kindness is. So, “narrate your behaviour”.
Praise the positive rather than focusing on the negative. Catch them when they’re being good and acknowledge it.
Show empathy towards your child’s needs as well as your own. Take care of yourself so that you can be calm, loving and respectful, rather than angry and frustrated.
Be open to communication, goal-setting and problem-solving, says Dr Thoraiya Kanafani. “It is important to recognise that there is a fine line between positive parenting and becoming parents who overanalyse their children and provide more emotional context than what is in the child’s emotional development to understand.”
 

Famous left-handers

- Marie Curie

- Jimi Hendrix

- Leonardo Di Vinci

- David Bowie

- Paul McCartney

- Albert Einstein

- Jack the Ripper

- Barack Obama

- Helen Keller

- Joan of Arc