Barack Obama arrives to address troops at Bagram Air Base in Afghanistan.
Barack Obama arrives to address troops at Bagram Air Base in Afghanistan.

Obama makes surprise visit to Afghanistan



The US President, Barack Obama, praised American troops for "important progress" against militants in Afghanistan, during an unannounced visit to an American airbase outside the capital on Friday.

A planned helicopter trip to Kabul to meet Mr Obama's Afghan counterpart Hamid Karzai was cancelled because of bad weather, and instead the two leaders spoke only briefly by telephone.

Mr Obama's second visit to Afghanistan as president came as the White House prepared to release a review of the war strategy and the day after leaked cables detailed deep US concerns about Mr Karzai's abilities and alleged widespread fraud.

The US president is under pressure to show progress in the increasingly unpopular nine-year-old war, and told nearly 4,000 troops gathered in a hangar to hear him that they were gaining ground against insurgents.

"Today we can be proud that there are fewer areas under Taliban control," Mr Obama said, in a speech filled with tributes to sacrifices of serving troops and their families back home.

"We said we were going to break the Taliban's momentum and that's what you're doing, you're going on the offense, tired of playing defense," he said to the crowd of mostly US troops.

The trip comes at a time of spiralling violence and record casualties. Altogether about 1,400 U.S. troops have died in Afghanistan since the 2001 ouster of the Taliban.

Mr Obama last year increased force levels to widen the Afghan military campaign, and many of the extra troops have been thrown into tough fighting.

A major offensive in the southern Taliban heartland of Kandahar has won some ground, but the insurgency is also spreading in previously relatively peaceful northern and western parts of Afghanistan.

White House officials emphasised the main purpose of Obama's journey was a visit with the troops around the Thanksgiving and Christmas holidays, rather than a fact-finding mission ahead of the upcoming strategic review.

"I know it's not easy for all of you to be away from home especially during the holidays and I know its hard on your families, they have got an empty seat at the dinner table," Mr Obama told the crowd, after visiting wounded soldiers.

He awarded five Purple Heart medals in the Bagram hospital.

In addition to talking to Mr Karzai, Mr Obama got briefings from key advisers, including Gen David Petraeus, the top commander of US and Nato forces in Afghanistan, and Karl Eikenberry, the US ambassador to Afghanistan.

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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The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5