Afghan security forces gather at a street in Kunduz on Saturday after 'repelling' a coordinated Taliban assault on the northern city. AFP
Afghan security forces gather at a street in Kunduz on Saturday after 'repelling' a coordinated Taliban assault on the northern city. AFP

Afghan talks must be followed by real commitment to peace



"We are at the threshold of an agreement that will reduce violence and open the door for Afghans to sit together to negotiate an honourable and sustainable peace." So wrote US envoy to Afghanistan Zalmay Khalilzad, even as Taliban insurgents targeted the northern city of Kunduz, killing civilians and security forces in a triple-pronged attack to overrun it. It failed, but Afghanistan continues to be gripped by violence, despite claims from US negotiators that they are close to a peace deal with the Taliban. The attacks have been seen as an attempt by the Taliban to strengthen its hand in the ongoing talks and to show its military prowess. But the blood of innocent civilians is being spilled in this gruesome display of bloody showmanship. The spiral of violence must end and the Taliban must show its seriousness to being committed to a meaningful, long-lasting deal.

The nine rounds of talks between the US and Taliban officials have been punctuated on each occasion by violence outside the negotiating room. Key to the discussions are the withdrawal of US forces. The Taliban, in exchange, are expected to promise that international militant groups will not be allowed to thrive on Afghan soil. Yet such a condition is meaningless if the greatest threat to Afghans is homegrown. What is more, the Taliban have shown little sign so far of honouring the political process, which should lead to elections later this month. They have refused to acknowledge the legitimacy of Afghan president Ashraf Ghani and said they will continue their fight against the Afghan government.

Nevertheless, it is important that diplomatic efforts continue unabated. There are precedents in engaging with militants, as demonstrated by the Good Friday Agreement in Northern Ireland, which led to a decommissioning of weapons and a peace that has lasted more than 20 years. Similarly, the 2016 peace accord between the Colombian government and Farc rebels ended a war that claimed more than 260,000 lives. The fact that agreement is now threatening to unravel, with some Farc leaders declaring war once again, shows how fragile any peace process is and how imperative it is that talks do not end with signatures on paper.

For Afghans, the Taliban are an inevitable part of the landscape. The group controls more territory than it did in 2001. However, they must show a commitment to laying down arms and putting Afghans first if they expect to be taken seriously. An agreement can only be conditional on a full and total ceasefire. US President Donald Trump’s recent announcement to reduce troops in Afghanistan from 14,000 to 8,600 comes with risks at a time of great volatility. His haste to end an 18-year war before the 2020 US presidential election cannot come at the cost of more lives. There are fears a speedy withdrawal could see Afghanistan plunge into civil war once again and herald a return of Taliban rule and the stripping of rights of citizens. Afghans have a right to self-determination but the coming weeks and months will require cautious steps to ensure they all have a say in their future.

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Group A: Palmeiras, Porto, Al Ahly, Inter Miami.

Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.

Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.

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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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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
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