US grows interested in Maghreb countries



In an opinion article in the UAE newspaper Al Khaleej, Alhussein al Zawi reviewed the status of US relations with the Maghreb countries, saying that they have recently experienced enormous growth thanks to special development and economic programmes. A more comprehensive plan is to come next month during US-Algerian business council talks in Algiers, which are expected to detail investment initiatives in the countries of the region.

Except for Algeria, the growing US strategic role in the Maghreb Arab countries should not be seen as  an alternative to that of France's, however.  Currently, Algiers considers Washington to be the right economic partner. The US, in turn, sees Algeria as a potential market and an ally in fighting al Qa'eda in sub-Saharan Africa. Tunisia and Morocco represent for the US a haven of political and social stability. Both countries would like to expand their dealings with Washington, while keeping their traditional relations with France and the rest of Europe. Although US relations with Libya and Mauritania have improved recently, they are less developed in comparison to other states. The US is still uncertain about the future of Tripoli, but that does not prevent it from considering it for investment in the energy sector. Mauritania is less appealing because of its small economy.

In a comment piece for the Jordanian newspaper Addustour, Yaser al Zaatra argued that  the Palestinian Authority must engage in negotiations to ensure the Palestinians that it is striving to establish an independent state.

Amid the propaganda for and against direct negotiations, talking about pressure exerted on the Palestinians is pointless. It should be noted that continuous consultation has always been undertaken between the two parties either in Ramallah or in contacts' offices. "These are the kind of negotiations that yield practical results, while much publicised talks have other hidden goals and are less likely to lead to a final deal. And if the Palestinians accept Benjamin Netanyahu's proposal, this can translate into plain political suicide." The Israelis have shown interest in this new round of negotiations because they look forward to an "economic peace" that will avoid the eruption of a new intifada across the Occupied Territories, and especially in the West Bank. But the Palestinian Authority is left with no other choice but to concede to the Israelis' demands.

The military action in Afghanistan has both declared and undeclared objectives, wrote Zakariya Shaheen in a comment piece for the London-based newspaper Al Arab. The discovery of substantial reserves of oil and valuable mineral resources in the north of the country has prompted many observers to question the real reasons for invading Afghanistan in the first place. According to The New York Times, the war launched in Afghanistan in 2001 was aimed originally at ensuring the installation and security of oil pipelines in close consultation with some Taliban groups. This was carried out further after the US troops had controlled Kabul and its surrounding areas, and vowed to assign permanent forces there.

"The US knew at the time that the war could not be decided overnight against the Taliban because of the complex tribal character of local communities and other factors. For this reason, the Americans contracted with para-military forces, whose number has reached about 104,000, to watch over the oil pipelines." Although the US administration claimed that it was first informed about Afghanistan's mineral wealth in 2007 in a Pentagon survey, the elite of the business community already knew this fact after geological studies undertaken by the then Soviet Union before the war of 1979-1988.

"As soon as Saudi Arabia launches its products in a foreign country's market, we witness our won market drowned with their products," noted the Saudi newspaper Al Jazeera. "Many countries have even resorted to protective duties in violation of the laws and regulations stipulated by the International Trade Oraganisation, which encourages smooth trade activities across the world." Many countries obstruct the entry of Saudi goods, especially petrochemicals, to their markets. Such products have faced the protectionist measures that were first applied in Europe. Now India has followed the same trend, although the trade balance is strongly in its favour. Indian exports to the kingdom amount to billions of dollars, and no constraints have ever been imposed. "This is not to mention the value of remittances of one million Indian expatriates working in the Saudi Arabia. They are estimated at billions of dollars every year.For all these reasons, India's attitude is a breach of the simplest rules of reciprocity that govern relations between states."

* Digest compiled by Mostapha El Mouloudi @Email:melmouloudi@thenational.ae

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

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
INDIA V SOUTH AFRICA

First Test: October 2-6, at Visakhapatnam

Second Test: October 10-14, at Maharashtra

Third Test: October 19-23, at Ranchi

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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GP3 race: 12:10pm
Formula 2 race: 1:35pm
Formula 1 race: 5:10pm
Performance: Guns N' Roses

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Business Insights
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