North Korean conducted its sixth nuclear test, believed to be a hydrogen bomb, on Sunday. KCNA via Reuters
North Korean conducted its sixth nuclear test, believed to be a hydrogen bomb, on Sunday. KCNA via Reuters

North Korea may be setting a precedent for other rogue nations



North Korea has spent much of the year showing off its destructive capabilities. The world, it seems, cannot catch a break from Pyongyang's relentless provocations on the Korean peninsula. The longstanding threats to decimate cities in Japan and South Korea are now accompanied by warnings that North Korea can put an end to life in American cities. What might once have been dismissed as the boasts of a pariah state eager for attention can no longer be ignored. Kim Jong-un, the 33-year-old president of the ironically named Democratic People's Republic of Korea, has left no room for doubt that he possesses the means to turn menacing words into lethal action. Just to dispel any residual uncertainty, he followed up July's successful test of North Korea's intercontinental ballistic missiles – which placed the United States within the range of Pyongyang's weapons delivery systems – with its sixth nuclear test, said to be a hydrogen bomb, on Sunday. In between, Mr Kim sent an ICBM sailing over Japan.

Pyongyang signed the Nuclear Non-Proliferation Treaty in 1985. The NPT is perhaps the most successful multilateral treaty of its kind: virtually all signatories to it have complied with its central call to curb the spread of nuclear weapons. Some states – notably India, Pakistan and Israel – never joined the NPT. Of those that did join, a tiny number were found by the International Atomic Energy Agency to be in breach of the NPT’s terms. The leaders of this notorious club of non-compliant rogue states have always been Iran and North Korea.

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Washington, which led the negotiations with Pyongyang and Tehran, has been humiliated by both. The nuclear deal with Tehran, as The National pointed out last month, has not enhanced the world's security or halted the sinister conduct of Iran, which last week revealed plans to "boost" its existing missile power. All that the nuclear deal has done is encourage North Korea (and possibly others) to follow in Iran's footsteps.

The United Nations will no doubt be unanimous in its condemnation of North Korea. But what will that achieve? Sanctions and censure can no longer obscure the fact that the world's options to contain Pyongyang have shrunk. Washington's security commitments to Japan and South Korea will severely be compromised by North Korea's upgraded retaliatory powers. Resolving the current crisis – even in the form of a temporary fix – will depend on whether or not the US is able to conscript China into an international effort to restrain Pyongyang. But a long-term solution seems elusive. The predicament of dealing with Pyongyang is that it exposes the poverty of options while reminding the world that inaction is not an option.

There was a time when the US was in a position to halt the nuclear programmes of North Korea and Iran. It chose, sadly, to delude itself into believing that concessions would stimulate Tehran and Pyongyang to behave responsibly. Concessions have instead emboldened them – and created the need for yet more concessions. How this pattern will be broken is impossible to guess. But there is an invaluable lesson here for Washington: rewarding bad behaviour does not inhibit such behaviour but rather encourages it.

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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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Test

Director: S Sashikanth

Cast: Nayanthara, Siddharth, Meera Jasmine, R Madhavan

Star rating: 2/5

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COMPANY PROFILE

Name: Xpanceo

Started: 2018

Founders: Roman Axelrod, Valentyn Volkov

Based: Dubai, UAE

Industry: Smart contact lenses, augmented/virtual reality

Funding: $40 million

Investor: Opportunity Venture (Asia)

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The White Lotus: Season three

Creator: Mike White

Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell

Rating: 4.5/5

Continental champions

Best Asian Player: Massaki Todokoro (Japan)

Best European Player: Adam Wardzinski (Poland)

Best North & Central American Player: DJ Jackson (United States)

Best African Player: Walter Dos Santos (Angola)

Best Oceanian Player: Lee Ting (Australia)

Best South American Player: Gabriel De Sousa (Brazil)

Best Asian Federation: Saudi Jiu-Jitsu Federation

Europe’s rearming plan
  • Suspend strict budget rules to allow member countries to step up defence spending
  • Create new "instrument" providing €150 billion of loans to member countries for defence investment
  • Use the existing EU budget to direct more funds towards defence-related investment
  • Engage the bloc's European Investment Bank to drop limits on lending to defence firms
  • Create a savings and investments union to help companies access capital
SPEC%20SHEET%3A%20APPLE%20IPHONE%2015%20PRO%20MAX
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From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

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 

Calls

Directed by: Fede Alvarez

Starring: Pedro Pascal, Karen Gillian, Aaron Taylor-Johnson

4/5

The specs: 2018 Ducati SuperSport S

Price, base / as tested: Dh74,900 / Dh85,900

Engine: 937cc

Transmission: Six-speed gearbox

Power: 110hp @ 9,000rpm

Torque: 93Nm @ 6,500rpm

Fuel economy, combined: 5.9L / 100km

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