Why did the Pakistani parliament choose to be nuetral regarding the conflict in Yemen? STR / EPA
Why did the Pakistani parliament choose to be nuetral regarding the conflict in Yemen? STR / EPA

Pakistan’s vote on Yemen is ‘contradictory’



Given the strong ties between Pakistan and the Gulf countries, particularly the UAE and Saudi Arabia, the Pakistani parliament’s unanimous decision to be neutral in the Yemen conflict is disappointing and throws up several important questions. As the UAE Minister of State for Foreign Affairs, Dr Anwar Gargash, said, the parliament’s rejection of the opportunity to join the coalition that is restoring order in Yemen was an “unexpected” response.

The Saudi-led coalition is engaged in a battle to restore regional security and stability. It is at times like these that one appreciates the support of friends. The Pakistani parliament’s decision stipulating “neutrality” while expressing “genuine support” for Saudi Arabia is, as Dr Gargash said, “contradictory”.

It requires explanation. Surely there must be more to this decision than the Pakistani army’s case that it is overstretched because of a counterterrorism campaign against the Pakistani Taliban and tensions with India.

So the question must be why did the Pakistani parliament unanimously pass such a resolution? It came the day after Iran’s foreign minister, Mohammad Javad Zarif, visited Islamabad for talks on Yemen.

He met both prime minister Nawaz Sharif and chief of army staff Raheel Sharif. This was, clearly, a crucial meeting at a critical time. What was said during Mr Zarif’s visit? The Gulf countries deserve an answer.

The Pakistani parliament’s resolution was unwise, and certainly not in its interests, and hurts the brotherly bonds with the Gulf states. Shared ties have always been based on the sense of common values.

The sense of hurt is all the deeper when the close relationship with Islamabad goes back so many decades. The Saudis have long been large-hearted friends to Pakistan but this is not about payback. It is about doing the right thing at the right time and in the right way.

Perhaps Pakistan’s lawmakers will reconsider their position in line with the Saudis’ stoic and measured view that the parliamentary vote may not be the end of the matter.

'Shakuntala Devi'

Starring: Vidya Balan, Sanya Malhotra

Director: Anu Menon

Rating: Three out of five stars

West Indies v England ODI series:

West Indies squad: Jason Holder (c), Fabian Allen, Devendra Bishoo, Darren Bravo, Chris Gayle, Shimron Hetmyer, Shai Hope, Evin Lewis, Ashley Nurse, Keemo Paul, Nicholas Pooran, Rovman Powell, Kemar Roach, Oshane Thomas.

Fixtures:

1st ODI - February 20, Bridgetown

2nd ODI - February 22, Bridgetown

3rd ODI - February 25, St George's

4th ODI - February 27, St George's

5th ODI - March 2, Gros Islet

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.”

T20 World Cup Qualifier

Final: Netherlands beat PNG by seven wickets

Qualified teams

1. Netherlands
2. PNG
3. Ireland
4. Namibia
5. Scotland
6. Oman

T20 World Cup 2020, Australia

Group A: Sri Lanka, PNG, Ireland, Oman
Group B: Bangladesh, Netherlands, Namibia, Scotland

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