When the former emir of Qatar, Hamad bin Khalifa, handed over power to his son in June 2013, many in the Gulf hoped the transition would herald a new beginning for Qatar’s relationship with its neighbours. Since the Arab uprisings two years earlier, Doha had played an outsize role in changing the geopolitical map of the region to the detriment of its neighbours’ interests. It aligned itself with what seemed to be the primary benefactors of the new Arab world, namely the Muslim Brotherhood and other Islamists.
By the time Sheikh Tamim took over, the regional standing of Islamists appeared to be declining. The perception then was that the new emir was poised to lead a foreign policy transition too, away from the divisive ways of his father. Chatter in the Gulf suggested that Sheikh Tamim was close to the Saudi royal court before his ascent to power, unlike his father who captured power in a coup in 1995 and pursued a truculent policy to rival his larger neighbour.
A test of the optimism came a week after he took office, with the removal of Mohammed Morsi, Egypt’s Islamist president. The rift between Qatar, on one hand, and Saudi Arabia and the UAE, on the other, deepened. For several months, Sheikh Tamim insisted that he wanted to keep the Qatari foreign policy in synch with that of its neighbours. The problem, the Saudis and Emiratis were told, was that the new emir could not reverse policies overnight.
Attempts to settle differences behind closed doors failed. In March 2014, Riyadh, Abu Dhabi and Manama recalled their ambassadors from Doha in protest at what they described as policies that threatened regional stability. The public move was uncharacteristic of Gulf politics, and citizens and expatriates immediately realised, without necessarily knowing the details, that the feud must have been too deep for those countries to take such an action publicly.
The four countries resumed talks and Qatar bowed down the following month to a set of demands. The demands included refraining from undermining another country’s security, interests and safety; reining in media outlets critical of the Gulf countries; cessation of support to the Muslim Brotherhood and the Houthis; putting an end to Qatar’s naturalisation of nationals of other Gulf countries. (Qatar was accused of providing Qatari citizenship, besides financial support, to Islamist oppositionists from other Gulf countries.)
Qatar was given a three-month period to prove its compliance. Authorities there deported Islamist figures previously domiciled in Doha, and supposedly took steps to roll back its support for Islamists in Libya, Syria, Yemen and the Gulf. Youssef Al Qaradawi, a senior Egyptian cleric and the nominal spiritual leader of the Muslim Brotherhood, stopped giving Friday sermons for a few weeks. The row was visibly contained.
Until Monday. The three Gulf states announced unprecedented measures against Qatar, severing diplomatic ties and shutting down all land, air and sea crossings. The rigorous action was accompanied by equally unprecedented media attacks: “Qatari opposition” called for Sheikh Tamim’s removal and the establishment of a “national accord government”, no doubt an ironic echoing of calls made by Qatar’s proxies during the Arab uprisings.
The rhetoric is more serious and damaging than the economic and diplomatic measures, as anyone familiar with Gulf politics will recognise.
What happened between 2014 and Monday to warrant such action? Why now? There was no such thing as a spark. As described by an official familiar with the process, the situation escalated over time, specifically since January 2015, when King Salman took office. The new king subsequently inaugurated a new approach to engage Qatar.
Riyadh reset its relations with Qatar, and began a dialogue to resolve all outstanding issues. The Saudis also pushed the more sceptical UAE to do the same, especially since the 2014 agreement led nowhere anyway. The new approach, according to the official, emboldened the Qataris, who felt the pressure was off to revert to old policies. The timing of the reset may have also indicated to Qatar that Riyadh was too stretched in Yemen, and preoccupied with the effort to counter Iran under the Trump presidency, to pick a fight with pro-Islamist Qatar.
Tension was coming to a head for some time and what officials describe as “unacceptable behaviour” by Qatar increased recently. Whenever confronted, officials say, Qatar would deny and obfuscate. Media attacks emanating from Doha-funded outlets noticeably heightened in recent months. Riyadh, per the public statement, also accused the Qataris of supporting Shia Islamists in Bahrain and Saudi Arabia's eastern region.
A combination of factors led the Gulf states to act against Qatar at this time. The American unease about Qatar’s role in the financing of extremist organisations in the Middle East, and the momentum of the Riyadh-Washington relationship, meant that if there was a time to attempt to change Qatar’s behaviour, it was now.
Each of the Gulf states has its own reasons for escalating against Qatar, with the common denominator being the support of Shia and Sunni Islamists against their interests. For now, the Qatari emir’s immediate concern is to demonstrate strength before his people — as indicated by his ceremonial Ramadan iftar with Al Qaradawi on Monday. But Qatar’s priority will no doubt be to seek a de-escalation as soon as possible, while the Gulf powers are determined to change Doha’s behaviour. The question is how, not if, it will be changed.
Hassan Hassan is a senior fellow at the Tahrir Institute for Middle East Policy and co-author of ISIS: Inside the Army of Terror
On Twitter: @hxhassan
VEZEETA PROFILE
Date started: 2012
Founder: Amir Barsoum
Based: Dubai, UAE
Sector: HealthTech / MedTech
Size: 300 employees
Funding: $22.6 million (as of September 2018)
Investors: Technology Development Fund, Silicon Badia, Beco Capital, Vostok New Ventures, Endeavour Catalyst, Crescent Enterprises’ CE-Ventures, Saudi Technology Ventures and IFC
Company%20profile
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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
The specs
Engine: 3.9-litre twin-turbo V8
Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)
COMPANY%20PROFILE
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Killing of Qassem Suleimani
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.”
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
COMPANY%20PROFILE
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UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
THE BIO
Favourite car: Koenigsegg Agera RS or Renault Trezor concept car.
Favourite book: I Am Pilgrim by Terry Hayes or Red Notice by Bill Browder.
Biggest inspiration: My husband Nik. He really got me through a lot with his positivity.
Favourite holiday destination: Being at home in Australia, as I travel all over the world for work. It’s great to just hang out with my husband and family.
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
THREE
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THE%20HOLDOVERS
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