Much of the modern-day Middle East as we know it was drawn up in the Sykes-Picot Agreement of 1916, seen in this map of "Eastern Turkey in Asia, Syria and Western Persia" / Unispal
Much of the modern-day Middle East as we know it was drawn up in the Sykes-Picot Agreement of 1916, seen in this map of "Eastern Turkey in Asia, Syria and Western Persia" / Unispal

Why do we still use the term Middle East when West Asia is more relevant to Arab nations?



Neuroscientists and linguists have demonstrated that the language we speak and the words we use shape how we think. Terminology certainly matters in geopolitics as well, conditioning how we view entire regions of the world. Crucially, our geographic vocabulary evolves to suit the times. The Cold War, for example, was often referred to as the "East-West conflict" but today nobody thinks of Russia as representative of the "East" – when it is China that is clearly the eastern superpower. Unfortunately, when it comes to the Arab, Turkic and Persian realms, the catch-all term "Middle East" continues to hold sway among English speakers. Subsuming any of the geographic distinctions and nuance contained in the Arabic terms Maghreb, Khaleej and Mashriq, the vague "Middle East" continues to represent so much –even as it increasingly means nothing at all. Isn't it time for our vocabulary to adapt to reality?

At its most obtuse, Middle East connotes everything from Morocco to Afghanistan, spanning a melange of sub-regions stretching from North Africa to Central Asia. But North African countries from Egypt westwards have little relevance to Asia, even though they are mostly Arab-populated. It makes far more sense to refer to West Asia and Southwest Asia to capture Turkey, Iran, the Gulf states, and the nations lying between them. Neutral geographic labels are ultimately much more revealing than colonial artefacts. Of course we can blame colonialism and the Cold War for fragmenting what was once a far more fluid and integrated picture of relations across Asia’s Silk Roads. But it has been nearly three decades since the collapse of the Soviet Union, more than enough time for Arab leaders to come to terms with the new global circumstances.

Since that time, East and South Asia’s rise has compelled West Asia to rediscover its Asian geography. The energy “supercycle” that kicked off in the 1990s rapidly tied the Gulf’s fortunes to Asians – especially China, Japan and South Korea, and now also energy-thirsty India – rather than to the West. The Gulf states’ trade with all other sub-regions of Asia is intensifying. The GCC exports petroleum and gold to India and imports jewellery and textiles amounting to nearly $200 billion per year. China also has nearly $170 billion in trade with GCC countries and its growing use of the renminbi is rekindling plans for a free-trade agreement. In the past decade, Japan and South Korea have also increased their trade with the Gulf states and Japan is pursuing a free-trade agreement with the GCC. Meanwhile, Asean exports of meat, fruit, tea and other agricultural goods to the Gulf states have doubled in less than a decade, contributing to their $130 billion in annual trade. Asean energy consumption is expected to double between 2015 and 2030, with much of the additional supply coming from the Gulf.

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Fresh investments spanning the breadth of this new maritime Silk Road from the Strait of Hormuz to the Strait of Malacca – the world’s most significant energy passageways – are further evidence of the Asianisation pulling all corners of the region together. In early 2017, Saudi Arabia’s King Salman spent one month travelling to Malaysia, Indonesia, Japan, and China, inaugurating new petrochemical refineries for their oil imports from the kingdom. Many of his generation studied in India, and now thousands of young Saudis are returning to Indian universities as King Abdullah Scholarship recipients. All Gulf states have launched eastward-facing campaigns. Kuwait and Qatar have invested in large new refineries in Indonesia, while Mubadala Petroleum is underwriting gas exploration in Thailand and elsewhere in Southeast Asia.

In the reverse direction, China has bought into the UAE’s oil fields by acquiring a stake in Adnoc’s onshore drilling operations, while both the Jiangsu Province Overseas Cooperation and Investment Company and Cosco have signed 35-year and 50-year leases, respectively, on facilities at Abu Dhabi’s Khalifa Port. Across the Arab world, China invested $26 billion in 2016 alone. Arabic is the fastest-growing language at Beijing’s Foreign Studies University. Cross-Asian investment growth is inspiring plans for a great decoupling between oil and the dollar, with many experts predicting the imminent establishment of petro-RMB oil pricing.

Gulf economies cannot achieve their goal of economic diversification without support from East Asia. In 2015, Saudi Arabia's Public Investment Fund (PIF) purchased a 38 per cent stake in South Korea's Posco Engineering and Construction, after which Saudi Aramco turned to Korea's Hyundai to construct the Gulf's largest shipyard. Bahrain and Oman are turning ever more to East Asian banks for trade financing and joint investments. Both Japan and South Korea have been crucial in providing the high-end industrial machinery and electronics necessary for the Gulf states' ambitions for economic transformation.

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Asia’s SWFs and financial conglomerates are also working with high-growth Asian countries on crucial infrastructure projects. Mubadala Investment Company together with its partners in China has committed $1 billion towards opportunities there, while Dubai Ports World has a $3 billion fund that is targeting investments across India’s rapidly growing logistics sector. Asian tech companies are also leading the drive to capture the Arab world’s 400 million customers, half of whom are regular internet users. Alibaba has begun a $600 million investment into a “tech town” near Jebel Ali that will house robotics and mobile app companies. Tencent is launching WeChat services across the region, facilitating payments and remittances for the millions of migrant labourers from South Asia, while Xiaomi has begun selling an $88 smartphone targeting low-wage workers.

For the past quarter of a century, the most fragile part of the Arab world has been the West’s purview, with Asians free riding on western military involvement and financial contributions. But now that most of the significant long-term energy contracts, infrastructure projects and diplomatic initiatives are tied to Asian powers, the Asian-Arab nexus will determine West Asia’s future more than any diktats from Washington or London. China and India are already the largest purchasers of Iraqi oil. The Iraqi army used Chinese-made killer drones in its successful 2017 assault on ISIS, and China’s Huawei outbid European bidders to win the contract to build Iraq’s telecom infrastructure, which it rolled out in just 12 months.

Other Arab countries that have failed to build meaningful postcolonial identities are also seizing the chance to deepen strategic ties with the world’s largest and fastest-growing economies. Jordan is trying to stop relying on Arab and western aid by inviting in Asian investors to help build its economic base. Jordan also became a founding member of the Asian Infrastructure Investment Bank (AIIB), rewarded with immediate approval of financing to construct new shale-oil and renewable-energy power plants, a special economic zone for manufacturing and logistics near the strategic port of Aqaba, and a $3 billion deal for China to build a national railway network. Within a decade, the old Ottoman-era Hejaz Railway will become part of the new Asian Silk Road network. Syrians used to proudly call themselves “eastern Mediterranean”. Now they know their future is Arab-Asian.

Dr Parag Khanna is managing partner of FutureMap, a strategic advisory firm, and author of The Future is Asian: Commerce, Conflict, and Culture in the 21st Century published by Hachette, from which this essay is adapted. The book is available from today in the UAE and across the Gulf region

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.”

Duterte Harry: Fire and Fury in the Philippines
Jonathan Miller, Scribe Publications

The five stages of early child’s play

From Dubai-based clinical psychologist Daniella Salazar:

1. Solitary Play: This is where Infants and toddlers start to play on their own without seeming to notice the people around them. This is the beginning of play.

2. Onlooker play: This occurs where the toddler enjoys watching other people play. There doesn’t necessarily need to be any effort to begin play. They are learning how to imitate behaviours from others. This type of play may also appear in children who are more shy and introverted.

3. Parallel Play: This generally starts when children begin playing side-by-side without any interaction. Even though they aren’t physically interacting they are paying attention to each other. This is the beginning of the desire to be with other children.

4. Associative Play: At around age four or five, children become more interested in each other than in toys and begin to interact more. In this stage children start asking questions and talking about the different activities they are engaging in. They realise they have similar goals in play such as building a tower or playing with cars.

5. Social Play: In this stage children are starting to socialise more. They begin to share ideas and follow certain rules in a game. They slowly learn the definition of teamwork. They get to engage in basic social skills and interests begin to lead social interactions.

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

'Gehraiyaan'
Director:Shakun Batra

Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa

Rating: 4/5

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
The specs

Price, base / as tested Dh12 million

Engine 8.0-litre quad-turbo, W16

Gearbox seven-speed dual clutch auto

Power 1479 @ 6,700rpm

Torque 1600Nm @ 2,000rpm 0-100kph: 2.6 seconds 0-200kph: 6.1 seconds

Top speed 420 kph (governed)

Fuel economy, combined 35.2L / 100km (est)

Profile

Co-founders of the company: Vilhelm Hedberg and Ravi Bhusari

Launch year: In 2016 ekar launched and signed an agreement with Etihad Airways in Abu Dhabi. In January 2017 ekar launched in Dubai in a partnership with the RTA.

Number of employees: Over 50

Financing stage: Series B currently being finalised

Investors: Series A - Audacia Capital 

Sector of operation: Transport

About Takalam

Date started: early 2020

Founders: Khawla Hammad and Inas Abu Shashieh

Based: Abu Dhabi

Sector: HealthTech and wellness

Number of staff: 4

Funding to date: Bootstrapped

if you go

The flights

Emirates fly direct from Dubai to Houston, Texas, where United have direct flights to Managua. Alternatively, from October, Iberia will offer connections from Madrid, which can be reached by both Etihad from Abu Dhabi and Emirates from Dubai.

The trip

Geodyssey’s (Geodyssey.co.uk) 15-night Nicaragua Odyssey visits the colonial cities of Leon and Granada, lively country villages, the lake island of Ometepe and a stunning array of landscapes, with wildlife, history, creative crafts and more. From Dh18,500 per person, based on two sharing, including transfers and tours but excluding international flights. For more information, visit visitnicaragua.us.

NO OTHER LAND

Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal

Stars: Basel Adra, Yuval Abraham

Rating: 3.5/5

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

While you're here