Before Israeli President Isaac Herzog makes his country’s first presidential visit in a dozen years to Turkey next month, he plans to stop in Nicosia and Athens to reassure those allies of Israel’s continued commitment. The order of the meetings is telling: Turkey, last on the agenda, is clearly the headliner, while Cyprus and Greece are opening acts.
Israel’s diplomatic nicety underscores the extent to which Turkey has strengthened its position in the Eastern Mediterranean in the past two years. In late 2019, the EU levied sanctions against Turkey for its exploratory drilling in waters claimed by the Republic of Cyprus, but which Turkey claims belong to the Turkish Republic of Northern Cyprus (TRNC).
Some weeks later, Ankara signed a maritime borders deal with Tripoli that essentially ignored the Greek island of Crete and sparked widespread criticism. The next summer, after a tense standoff of French and Turkish vessels near the Libyan coast, France suspended its Nato patrols in protest of Ankara’s aggressions. Then Turkey and Greece came to the brink of war due to a dispute over a tiny Greek island a few kilometres off the Turkish coast.
September 2020 saw the official formation of the Eastern Mediterranean Gas Forum, which sought to build a major pipeline to Europe. With Israel, Egypt, Greece, Italy, Cyprus and Jordan as members, the new alliance was widely seen as a counter to Turkey. The UAE and EU soon joined as observer states.
By the end of 2020, Ankara appeared increasingly isolated. Fast forward 14 months and it peers out at a new world
Also that September, the US lifted its long-standing arms embargo on Cyprus, enabling military shipments to the Turkish rival. Following Turkey’s purchase of S-400 missile defences from Russia, the US had evicted Turkey from its F-35 programme and many observers called for Turkey to be ousted from Nato. By the end of 2020, when former US president Donald Trump levied sanctions against Turkey for the S-400 purchase, Ankara's isolation seemed complete.
Fast forward 14 months and Ankara peers out at a new world. The race for Eastern Mediterranean gas reserves ended almost before it began, as a price decline and a pandemic-driven drop in demand rendered Europe an unlikely market. Washington underscored this shift last month when it dropped out of the EastMed Pipeline.
What’s more, Turkey boosted its regional energy stance with a sizeable gas discovery in the Black Sea, which is expected to come online next year. More recently, pro-government outlets report another major Black Sea discovery could be in the offing.
Ankara and Athens continue to snipe at each other, but for the past year, the two have regularly met for high-level talks, including this Monday, to settle a range of disputes. In northern Cyprus, Turkey has established a drone base and helped install an Ankara-friendly president. And since TRNC voters now prefer Turkey’s two-state plan to the bizonal federation they had long advocated, the two-state proposal is now part of official negotiations. Meanwhile, Nicosia has shifted from calling for sanctions on Turkey to focusing on confidence-building measures.
Perhaps most importantly, in recent months Turkey has been able to simultaneously improve ties with regional heavy hitters in Egypt, Saudi Arabia, the UAE and Israel. Last week, the UAE welcomed Turkish President Recep Tayyip Erdogan with great fanfare as the two countries signed more than a dozen co-operative agreements, mostly in defence and trade.
That rapprochement is already paying dividends in Libya. Turkish Ambassador Kenan Yilmaz last month visited House Speaker Aguila Saleh in the country’s east, while the UAE named a new ambassador and reopened its embassy in Tripoli.
Despite the cancellation of the December elections, there seems to be momentum towards reconciliation, with Ankara and Abu Dhabi playing key roles. In addition, the US much prefers the continued military presence of Nato member Turkey in Libya to that of Russia, in the form of Wagner Group militants.
Even the Ukraine crisis has thus far helped boost Turkey's regional profile, as the US and Nato understand that a greater role for Turkey in the Eastern Mediterranean and Black Sea, and as Ukraine’s ally, can help contain Russia. Also, favouring Turkey in these theatres could help keep Ankara onside if war does erupt between Ukraine and Russia, as many expect.
Turkey is now in talks with Riyadh about its president visiting Saudi Arabia, while top Erdogan adviser Ibrahim Kalin stopped in Israel last week to lay the groundwork for Mr Herzog’s Turkey trip. The Israeli president is expected in Ankara March 9-10, and Tel Aviv has made clear that normalisation will not require Turkey to cut ties with Hamas, the Gaza-based, Muslim Brotherhood-linked terror group that has offices in Istanbul.
Anticipation for the summit is considerable, as it will mark the highest-level bilateral meeting since the 2010 Mavi Marmara incident, in which Israeli troops boarded a Turkish humanitarian vessel aiming to break the Gaza blockade and ended up killing 10 Turkish citizens. Some analysts have even suggested that Turkey might offer an alternative to the faltering EastMed Pipeline plan and help deliver Israeli gas to Europe.
Rampant inflation, growing public resentment and record numbers of Covid-19 cases still trouble Turkey at home, but beyond its borders, Ankara is riding high. It’s almost as if the past dozen years had been erased.
To top it off, just as Mr Herzog departs, Turkish officials will open the Antalya Diplomacy Forum. The March 11-13 summit expects high-level delegations from Greece, Egypt, Israel, the Council of Europe, Malta, Iraq and other regional players, perhaps including Armenia.
Turkey is suddenly poised to cement its renewed position of prominence in the Eastern Mediterranean and beyond. It’s all rather tenuous, and one wrong move could still derail this peace train. But since late 2020, what Ankara has achieved with a shift in approach, a dash of desperation and a bit of chutzpah is impressive, and shows just how fleeting isolation can be in this fast-changing geopolitical landscape.
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.”
COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
UAE currency: the story behind the money in your pockets
UAE currency: the story behind the money in your pockets
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
How Alia's experiment will help humans get to Mars
Alia’s winning experiment examined how genes might change under the stresses caused by being in space, such as cosmic radiation and microgravity.
Her samples were placed in a machine on board the International Space Station. called a miniPCR thermal cycler, which can copy DNA multiple times.
After the samples were examined on return to Earth, scientists were able to successfully detect changes caused by being in space in the way DNA transmits instructions through proteins and other molecules in living organisms.
Although Alia’s samples were taken from nematode worms, the results have much bigger long term applications, especially for human space flight and long term missions, such as to Mars.
It also means that the first DNA experiments using human genomes can now be carried out on the ISS.
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Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)
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COMPANY%20PROFILE
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Profile of Whizkey
Date founded: 04 November 2017
Founders: Abdulaziz AlBlooshi and Harsh Hirani
Based: Dubai, UAE
Number of employees: 10
Sector: AI, software
Cashflow: Dh2.5 Million
Funding stage: Series A
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