WASHINGTON // He was re-elected governor of Utah with an exceptional 78 per cent of the vote and has been touted as the Republicans' best chance to oust Barack Obama from the White House in 2012.
So why is Jon Huntsman Jr giving all that up to accept a position in the Obama administration as ambassador to China?
It is not that he does not have the credentials for the new job: he learnt to speak Chinese as a Mormon missionary in Taiwan and later worked in the commerce department and served as ambassador to Singapore and as deputy US trade ambassador before becoming the governor of Utah in 2004.
But an ambassador's role is, by nature, less public than a governor's - a quieter turn for Mr Huntsman, just as he was emerging as a national voice for a more inclusive Republican Party.
About two weeks before Mr Huntsman's nomination as ambassador to China, David Plouffe, who managed Mr Obama's successful 2008 presidential campaign, said: "I think the one person in [the Republican] party who might be a potential presidential candidate is Gov Jon Huntsman of Utah."
Kirk Jowers, director of the Hinckley Institute of Politics at the University of Utah, said that although Mr Huntsman was looking like an interesting presidential candidate, "the reality of his future for 2012 was more difficult".
For one thing, Mr Obama is hugely popular and would be tough to dislodge. More immediately, Mr Huntsman, a moderate Republican, would have to contend with his own party, which, after major defeats in the past few years, is undergoing a soul-searching period that has pitted right-wing elements against moderates.
As Utah governor, Mr Huntsman broke with conservatives in his party by signing on to a regional initiative to reduce greenhouse gases with a carbon cap-and-trade programme and by publicly supporting civil unions for same-sex couples, a move that also demonstrated independence from his church.
While he takes more conservative stands on many other issues, his moderate views would probably not play well in the next few years with Republican voters, who have been tending towards more conservative candidates, even though they are less likely to win a general election.
Not surprisingly, there was little criticism from within his party about his acceptance of the post, reflecting, some observers say, a desire to purge some of the more moderates from the party.
Mr Jowers said that time and experience on the other side of the globe would only improve Mr Huntsman's position for national politics later - including, possibly, a presidential bid in 2016.
"He was able to be a key voice in the current Republican self-identification crisis, but he doesn't have to be a part of the coming war on it. And he may very well return when the Republican Party is more at ease with itself," Mr Jowers said.
"I imagine that Gov Huntsman will take the steps necessary to be ready to run [for president] at some point in the future. It's so far away and it's such a moment of chance, that all you can do is take the steps necessary ? When he returns, he will not be simply an interesting small-state governor, but a high-level diplomat."
In an unusual move, Mr Obama personally announced the nomination at a press conference last month in Washington, where he talked up the significance of the position. "Given the breadth of issues at stake in our relationship with China, this ambassadorship is as important as any in the world," Mr Obama said.
The actual role of an ambassador, however, is fairly limited, according to Robert Daly, the director of the Institute for Global Chinese Affairs at the University of Maryland.
"While it is surely one of the most fascinating jobs in the world, I think the importance of it has been somewhat exaggerated," Mr Daly, a former diplomat who has worked at the American Embassy in Beijing, said. "Policy is primarily made in Washington."
Ambassadors often work behind the scenes, but Mr Huntsman will have the opportunity to explain China to high-level policymakers. He appears also to have the attention of the president and other administration officials, which could put him in a stronger position to advocate for rational China policy, according to Mr Daly.
The next step for Mr Huntsman is confirmation by the US Senate. Although he has won unanimous Senate confirmation on two occasions in the past and is likely to draw wide support from both Democrats and Republicans this time, his ties to a family company with a strong presence in China are likely to come up.
Mr Huntsman's résumé includes work for Huntsman Corporation, a chemical company founded by his father and currently run by his brother. The firm says its 2008 revenues exceeded US$10 billion (Dh36.7bn) and that it expects sales to grow by more than $1bn in China and throughout South East Asia over the next two years.
Such ties could put him in a position to gain from China policies he advocates, but Mr Daly noted that the governor could also spin his company ties as an asset because they have given him hands-on, China-related business experience.
As for policy, no major shifts are expected in US-China relations.
In the meantime, if the confirmation hearings go smoothly, bringing another popular Republican into the administration helps Mr Obama score points with moderates of both parties. His nomination of Mr Huntsman has been described by political commentators in the US as "a political coup" and a "masterstroke of political strategy".
* The National
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Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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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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