US vice president Mike Pence with Iraqi Prime Minister Haider Al Abadi before their meeting at the 53rd Munich Security Conference in Munich, Germany, February 18, 2017.   REUTERS/Michael Dalder
US vice president Mike Pence with Iraqi Prime Minister Haider Al Abadi before their meeting at the 53rd Munich Security Conference in Munich, Germany, February 18, 2017. REUTERS/Michael Dalder

Russia seeks 'post-West' order as US vows loyalty to allies



Munich // Russia on Saturday called for an end to what it said was an outdated world order dominated by the West after US vice president Mike Pence pledged Washington’s “unwavering” commitment to transatlantic allies in Nato.

Russian Foreign Minister Sergei Lavrov offered a diametrically opposed global vision, just hours after Mr Pence vowed to stand with Europe to rein in a resurgent Moscow.

“I hope that [the world] will choose a democratic world order — a post-West one — in which each country is defined by its sovereignty,” said Mr Lavrov.

The time when the West called the shots was over while Nato was a relic of the Cold War, he said.

In its place, Moscow wanted a relationship with Washington that is “pragmatic with mutual respect and acknowledgement of our common responsibility for global stability”.

Moscow has been impatiently waiting for Donald Trump to make good on his pledge to improve ties which plunged to a post-Cold War low as Barack Obama slapped on sanctions over the Ukraine crisis and Russia’s alleged meddling in Trump’s election.

On the campaign trail, Mr Trump repeatedly praised Vladimir Putin and voiced his willingness to work with him in fighting terrorism.

But in the face of growing heat over its links to Moscow, Mr Trump’s administration appears to be backing off the warmer words used earlier for the former Cold War foe.

Exasperated and worried by Mr Trump’s calling into question long-standing foreign policy assumptions, European leaders have warned Washington not to take transatlantic ties for granted.

On a European roadshow this week, Mr Trump’s lieutenants have sought to reassure jittery allies that the administration will hold fast to existing foreign policy, including maintaining sanctions on Russia over the Ukraine crisis.

Hours before Mr Lavrov addressed the Munich Security Conference, Mr Pence told the same forum that the United States will stay loyal to its old friends.

“The United States is and will always be your greatest ally. Be assured that President Trump and our people are truly devoted to our transatlantic union,” Mr Pence said.

The US would also not relent in pushing Russia to honour the Minsk ceasefire accords with Ukraine, he said.

“The United States will continue to hold Russia accountable, even as we search for new common ground, which as you know, President Trump believes can be found,” the vice-president said.

At Nato headquarters in Brussels on Thursday, defence secretary James Mattis said Russia must first “prove itself” and respect international law before there could be any improvement in relations strained by Moscow’s Ukraine intervention and annexation of Crimea.

Likewise, US secretary of state Rex Tillerson indicated he would take a tough line in his dealings with Russia.

Following his first meeting with Mr Lavrov in Bonn on Thursday, Mr Tillerson said the US would cooperate with Moscow but only when doing so “will benefit the American people”.

Despite the US charm offensive, European leaders gave a cautious reaction.

German foreign minister Sigmar Gabriel said he “had no doubt that the American vice-president and the defence secretary will do everything to fulfil their commitments within Nato as in the past.”

* Agence France-Presse

What is blockchain?

Blockchain is a form of distributed ledger technology, a digital system in which data is recorded across multiple places at the same time. Unlike traditional databases, DLTs have no central administrator or centralised data storage. They are transparent because the data is visible and, because they are automatically replicated and impossible to be tampered with, they are secure.

The main difference between blockchain and other forms of DLT is the way data is stored as ‘blocks’ – new transactions are added to the existing ‘chain’ of past transactions, hence the name ‘blockchain’. It is impossible to delete or modify information on the chain due to the replication of blocks across various locations.

Blockchain is mostly associated with cryptocurrency Bitcoin. Due to the inability to tamper with transactions, advocates say this makes the currency more secure and safer than traditional systems. It is maintained by a network of people referred to as ‘miners’, who receive rewards for solving complex mathematical equations that enable transactions to go through.

However, one of the major problems that has come to light has been the presence of illicit material buried in the Bitcoin blockchain, linking it to the dark web.

Other blockchain platforms can offer things like smart contracts, which are automatically implemented when specific conditions from all interested parties are reached, cutting the time involved and the risk of mistakes. Another use could be storing medical records, as patients can be confident their information cannot be changed. The technology can also be used in supply chains, voting and has the potential to used for storing property records.

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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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UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Company Profile

Name: Thndr
Started: 2019
Co-founders: Ahmad Hammouda and Seif Amr
Sector: FinTech
Headquarters: Egypt
UAE base: Hub71, Abu Dhabi
Current number of staff: More than 150
Funds raised: $22 million

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Director: Eli Roth

Rating: 0/5

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