Hamed Karzai, the Afghan president, met the US secretary of state, John Kerry, last week in Kabul. Mr Karzai is in Doha today on a state visit.  EPA
Hamed Karzai, the Afghan president, met the US secretary of state, John Kerry, last week in Kabul. Mr Karzai is in Doha today on a state visit. EPA

Karzai heads to Qatar in new talks for Taliban Doha office



The Afghan president Hamid Karzai is in Qatar today to discuss the opening of a Taliban office in Doha.

The two-day state visit will be the first high-level talks between the Afghan and Qatari leaders since plans for a Taliban office were announced about a year ago.

"We will discuss the peace process, of course, and the opening of an office for the Taliban in Qatar," the presidential spokesman, Aimal Faizi, said before Mr Karzai left Kabul for Doha yesterday with senior members of his government.

At least two senior Taliban figures are already in Doha, although a Taliban spokesman ruled out any direct talks with the Afghan president.

Nevertheless, Mr Karzai's visit could break the diplomatic deadlock that has stalled the office's official opening. His government had previously opposed a Taliban office outside Afghanistan, fearing that Kabul could be excluded from a final settlement.

The Afghan government reiterated yesterday that negotiations would have to work through official channels, regardless of where the talks took place.

"If we want to have talks to bring peace to Afghanistan, the main side must be the Afghan government's representatives - the High Peace Council, which has members from all the country's ethnic and political backgrounds," Mr Faizi said.

If plans for a political office proceed, it could open a new phase in American attempts to end the decade-long conflict in Afghanistan. The US plans to withdraw its troops by 2014 and hopes a negotiated settlement could ease the transition process.

Mr Karzai's visit was welcomed by Washington, which has not had direct contact with the Taliban for more than a year after negotiations about a prisoner exchange broke down in March 2012.

"We have always said that reconciliation will be a complicated, challenging process should talks begin. But President Obama and President Karzai have agreed that Afghan-led reconciliation is the surest way to end violence and ensure the lasting stability of Afghanistan and the region," a US state department official said.

"We think an office in Doha is the best and most effective way to advance the process."

It is not yet clear how the Taliban office will operate or where it will be. But Mr Faizi warned yesterday that its function should be strictly limited.

"It can only be an address where the armed opposition sit and talk to the Afghanistan government," he said.

The Taliban spokesman Zabihullah Mujahid said the opening of any office was "a matter between the Taliban and the Qatar government".

"If Karzai visits, it is not our concern. Our representatives who are already in Qatar won't see or talk to him."

Leveraging its considerable financial and diplomatic weight, Qatar has a history of recent successes in brokering negotiations, which it did in Darfur, Sudan and Lebanon.

Doha did not release any official statement on Mr Karzai's visit, but the prime minister and foreign minister, Sheikh Hamad bin Jassim bin Jabr Al Thani, said in January that stability in Afghanistan would depend on having "a political process in place" when American troops leave in 2014.

"Our aim is to help our Afghan brothers and find a solution accepted by all, or most, parties," he said.

The Karzai government is struggling to assert its authority over security matters, as Afghan troops try to assume control of much of the country before most of the Nato-led foreign coalition forces leave in December 2014.

Underlining tensions between Kabul and the foreign troops, US special operations forces yesterday withdrew from a district of Wardak province at the insistence of Mr Karzai after allegations that Afghan forces there had committed human-rights abuses on US orders.

Mr Karzai had originally demanded the US forces pull out from the entire province, a gateway and staging area for Taliban and other militants for attacks on Kabul, but he scaled down his demands to just Nirkh district after negotiations with US officials.

Also yesterday, Afghan officials said a Nato helicopter strike killed two children in southern Afghanistan.

The operation close to Ghazni city was conducted after complaints of a Taliban post targeting traffic convoys in the area.

President Karzai recently banned Afghan forces from requesting foreign air support.

Civilian casualties mostly caused by air strikes have been one of the most sensitive issues in relations between Mr Karzai and the Nato-led military.

* Additional reporting by Agence France-Presse and the Associated Press

COMPANY%20PROFILE%3A
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Envision%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2017%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EKarthik%20Mahadevan%20and%20Karthik%20Kannan%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20The%20Netherlands%3Cbr%3E%3Cstrong%3ESector%3A%3C%2Fstrong%3E%20Technology%2FAssistive%20Technology%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%241.5%20million%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2020%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Seed%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%204impact%2C%20ABN%20Amro%2C%20Impact%20Ventures%20and%20group%20of%20angels%3C%2Fp%3E%0A

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.”