NEW YORK // The leaders of Pakistan and India on Sunday agreed to find ways to end the outbreak of violence along Kashmir’s disputed border as a first step toward peace talks.
During their first meeting since Nawaz Sharif was elected Pakistani prime minister in May, Mr Sharif and his Indian counterpart, Manmohan Singh, also accepted invitations to visit the other’s countries, but no dates were set.
The pair, who met for an hour on the sidelines of the United Nations General Assembly, decided to task senior military officers to “find effective means to restore the ceasefire” in the disputed Kashmir region, the Indian national security adviser Shivshankar Menon said.
“Both agreed that the precondition for forward movement in the relationship, which they both desire, is really an improvement of the situation on the LoC,” Mr Menon said, referring to the Line of Control that divides the Pakistan- and Indian-controlled portions of the Muslim-majority region claimed by both countries.
Mr Sharif was elected to his third term as Pakistan’s leader – the first since being ousted in a military coup in 1999 – after a campaign that focused in part on improved economic relations with India and an end to tensions between the rivals.
During his address to the General Assembly on Friday, Mr Sharif called for a “new beginning” with India and said the two countries “have wasted massive resources in an arms race”, resources that could have been used for economic and human development in the overwhelmingly poor countries.
But the meeting came a day after Mr Singh called on Pakistan to stop being “the epicentre of terrorism” in South Asia. “For progress to be made, it is imperative that the territory of Pakistan and the areas under its control are not utilised for aiding or abetting terrorism,” Mr Singh told the General Assembly.
India accuses Pakistan of backing Kashmiri separatist militants, though violence in the region has dropped sharply since the most intense years of insurgency there in the 1990s and early 2000s, when tens of thousands of civilians were killed or disappeared as Indian security forces waged war against the militants.
Recently, however, there has been an uptick in militancy and general unrest in the region. On Thursday, suspected separatist rebels raided an Indian army base and police station in Kashmir, killing 13 people including a senior army officer. The top elected official in the Indian-controlled part of the region said the attacks were aimed at derailing the peace process.
Reconciliation has moved in fits and starts over the past decade, and has largely stalled since 2008 when Pakistan-linked militants carried out a three-day attack on Mumbai that left 166 people dead.
Mr Sharif promised “there would be action” on punishing those responsible for the attacks, Mr Menon said. “As for how useful and productive the meeting was, I think the only proof will be in the months to come.”
Analysts cautioned against high expectations after Sunday’s meeting.
“The sole tangible positive outcome of the meeting is that two armies’ head of military operations will meet to restore the ceasefire on the Line of Control in Kashmir,” said Arif Rafiq, a Pakistan expert at the Middle East Institute, a Washington-based think tank.
But, he said, “there will be no breakthroughs until India’s elections take place next spring”.
“Till then, both countries should aim to prevent other forces in their respective countries from fomenting instability.”
Mr Singh, 81, is expected to step down after the election, but will not want to appear soft on Pakistan before then. The main challenger to his Congress party is the Hindu-nationalist Bharatiya Janata Party, whose controversial candidate for prime minister, Narendra Modi, is staunchly opposed to detente with Pakistan.
tkhan@thenational.ae
The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
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.”
If you go
The Flights
Emirates and Etihad fly direct to Johannesburg from Dubai and Abu Dhabi respectively. Economy return tickets cost from Dh2,650, including taxes.
The trip
Worldwide Motorhoming Holidays (worldwidemotorhomingholidays.co.uk) operates fly-drive motorhome holidays in eight destinations, including South Africa. Its 14-day Kruger and the Battlefields itinerary starts from Dh17,500, including campgrounds, excursions, unit hire and flights. Bobo Campers has a range of RVs for hire, including the 4-berth Discoverer 4 from Dh600 per day.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
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
