'Historic opportunities' for US in the Middle East, Marco Rubio says in confirmation hearing



US senator Marco Rubio, Donald Trump's pick to lead the State Department, said during his confirmation hearing on Tuesday that there are “historic opportunities” for the US in the Middle East, and that he is “hopeful” of an imminent ceasefire in the Gaza war.

Mr Rubio appeared to sign on to the “day-after” plan outlined this week by current Secretary of State Antony Blinken, highlighting the importance of the Biden administration's proposed six-week transitional period, “where it's going to require international co-operation to bring some level of stability in administration”.

“There are opportunities available now in the Middle East that did not exist 90 days ago, whether it's what's happened in Lebanon, whether it's what's happened in Syria, whether it's what hopefully will happen with this ceasefire and the release of hostages,” Mr Rubio said at his Senate confirmation hearing. “But these things, again, are going to be hard work, and they'll require us to take advantage of those opportunities."

Mr Rubio signalled that the new Trump administration will adopt a harder posture against Iran, doubling down on the incoming president's “America First” agenda, as well as a more antagonistic relationship with the UN and international courts. He said that during Mr Trump's first term in office, “American strength was a deterrent to our adversaries, and it gave us leverage in diplomacy".

“There were no new wars. ISIS was eviscerated. [Islamic Revolutionary Guards Corps-Quds Force Maj Gen Qassem] Suleimani was dead. The historic Abraham Accords were born, and Americans were safer as a result. Now, President Trump returns to office with an unmistakable mandate from the voters. They want a strong America,” said Mr Rubio.

The Florida senator aligned himself with a growing hostility towards the UN and international courts, a mounting trend in the incoming “Trump trifecta” in Washington. He blasted the International Criminal Court's warrant for the arrest of Israeli Prime Minister Benjamin Netanyahu, saying the court “did tremendous damage to its global credibility” and warned that the warrants are a “test run” for whether the ICC can pursue figures in the US.

Mr Rubio described a vision of a post-Cold War order in which the US is being “manipulated” by its adversaries as Washington's enemies “hide behind their veto power at the United Nations Security Council". He has previously advocated the US halt its funding of the UN agency for Palestinian refugees, UNRWA, a measure that is expected to be among the policy priorities as Republicans take the helm.

The Florida Republican said Mr Trump has given a “very clear” directive that US policy abroad must be driven by “three simple questions”: “Does it make America safer? Does it make America stronger? Does it make America more prosperous?”

Mr Rubio indicated he would push for a swift end to the Russia-Ukraine war, and that Kyiv and Moscow should prepare for territorial concessions. “There's no way Ukraine is also going to push these people all the way back to where they were on the eve of the invasion,” he said.

“This war has to end, and I think it should be the official policy of the United States that we want to see it end. Now what that masterplan looks like … it's going to require bold diplomacy. It is important for everyone to be realistic."

Mr Rubio was in friendly company at his Senate confirmation hearing: the longtime senator was until recently a member of the Foreign Relations Committee responsible for questioning him. He is considered one of the few Trump nominees with bipartisan support – in sharp contrast to Mr Trump's pick to lead the Department of Defence, Pete Hegseth.

The committee's top Democrat, ranking member Jean Shaheen, told Mr Rubio that she believes he has "the skills and [is] well qualified to serve as secretary of state". The committee has scheduled its official vote to endorse Mr Rubio's nomination for Mr Trump's inauguration day, January 20.

Tuesday's fixtures
Group A
Kyrgyzstan v Qatar, 5.45pm
Iran v Uzbekistan, 8pm
N Korea v UAE, 10.15pm

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.”

Match info

Bournemouth 0
Liverpool 4
(Salah 25', 48', 76', Cook 68' OG)

Man of the match: Andrew Robertson (Liverpool)

Updated: January 16, 2025, 2:35 PM