Leaked data reveal countries' stark opinions and dramatic plans of aggression



More than a quarter of a million leaked documents provide the frank assessments of US diplomats on a range of issues, from behind the scenes negotiations to terrorist threats and even spying on allies:

Afghanistan

Deep suspicions of corruption: accounts from US officials' meetings with President Hamid Karzai's brother, Ahmed Wali Karzai, in February 2010, a powerful figure in the Taliban stronghold of Kandahar, describe him as a "narcotics trafficker" who "demonstrated that he will dissemble when it suits his needs". Another communique alleged that the Afghan vice president, Zia Massoud, was stopped by local authorities working with the US Drug Enforcement Administration on a trip to the UAE in September 2009 with US$52million (Dh191m) in cash. The cable said that Mr Massoud "was ultimately allowed to keep [the money] without revealing the money's origin or destination".

China

Internet sabotage: a Chinese contact told the US Embassy in Beijing in January 2010 that a senior member of the country's Politburo was responsible for the hacking of Google's computer systems in China, according to an embassy cable dated the same month. The cyber attacks forced the company to quit its operations in China. The cable also alleged that the hacking was part of a wider computer sabotage operation carried out by the Chinese government.

Chechnya

Nation's leader: a cable sent to Washington in August 2006 by the US deputy chief of mission in Moscow describes a wedding party he attended in the volatile North Caucasus republic of Dagestan with Chechnyan leader Ramzan Kadyrov. Mr Kadyrov, the cable alleged, danced "clumsily with his gold-plated automatic stuck down in the back of his jeans". The groom, identified as Dagestan Oil Company chief and current member of parliament Gadzhi Makhachev, and Mr Kadyrov also "showered the dancing children with hundred dollar bills" and that he gave the "happy couple a 'five kilo lump of gold' as his wedding present".

North Korea

Growing military co-operation with Iran: according to secret US intelligence reports, North Korea gave Iran 19 advanced new missiles more powerful than anything previously acknowledged to be in Tehran's possession, a diplomatic cable from February 2010 revealed. The New York Times noted that with a range of 3,200km the missiles, known as BM-25s, could for the first time give Iran the ability to strike at capitals in Western Europe.

Yemen

Air strikes: a cable from the US ambassador to Yemen and dated January 2010 confirms the widespread belief that the US had carried out missile strikes against the local branch of al Qa'eda, an assertion Sana'a denies. In a meeting between Yemeni President Ali Abdullah Saleh and Gen David Petraeus, the leader of US military forces in the Middle East at the time, Mr Saleh says, "We'll continue saying the bombs are ours, not yours," according to the cable. Yemen's deputy prime minister then joked that "he had just 'lied' by telling parliament" that Yemen had carried out the strikes.

Pakistan

Nuclear proliferation: secret American efforts to remove enriched uranium from a Pakistani research reactor have been unsuccessful and officials warned that if the country collapsed, government employees could smuggle out enough nuclear material for an illicit bomb. Then US ambassador, Anne Patterson, reported in May 2009 that Pakistani officials were refusing to allow American technical experts to visit nuclear facilities because "if the local media got word of the fuel removal, 'they certainly would portray it as the United States taking Pakistan's nuclear weapons', [a Pakistani official] argued".

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.”

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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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 
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Fuel economy, combined: 8.1L / 100km (estimated)