Georgia's allies have little help to offer



"The image of President Bush smiling and chatting with Prime Minister Vladimir V Putin of Russia from the stands of the Beijing Olympics even as Russian aircraft were shelling Georgia outlines the reality of America's Russia policy. While America considers Georgia its strongest ally in the bloc of former Soviet countries, Washington needs Russia too much on big issues like Iran to risk it all to defend Georgia," Helene Cooper wrote in a news analysis for The New York Times. "And Bush administration officials acknowledged that the outside world, and the United States in particular, had little leverage over Russian actions. "'There is no possibility of drawing Nato or the international community into this,' said a senior State Department official in a conference call with reporters... "'Strategically, the Russians have been sending signals that they really wanted to flex their muscles, and they're upset about Kosovo,' the diplomat said. He was alluding to Russia's anger at the West for recognising Kosovo's independence from Serbia. "Indeed, the decision by the United States and Europe to recognise Kosovo may well have paved the way for Russia's lightning-fast decision to send troops to back the separatists in South Ossetia. During one meeting on Kosovo in Brussels this year, Mr Lavrov, the foreign minister, warned [US Secretary of State Condoleezza] Rice and European diplomats that if they recognised Kosovo, they would be setting a precedent for South Ossetia and other breakaway provinces." The commentator, Steven Clemons, wrote: "By pushing Kosovo the way the US did and aggravating nationalist sensitivities, Russia could in reaction be rationally expected to further integrate and cultivate South Ossetia and Abkhazia under de facto Russian control and pull these provinces that border Russia away from the state of Georgia. "At the time, there was word from senior level sources that Russia had asked the US to stretch an independence process for Kosovo over a longer stretch of time - and tie to it some process of independence for the two autonomous Georgia provinces. In exchange, Russia would not veto the creation of a new state of Kosovo at the Security Council. The US rejected Russia's secret entreaties and instead rushed recognition of Kosovo and said damn the consequences. "Now thousands are dead. The fact is that a combination of American recklessness, serious miscalculation and overreach by Georgian president Mikheil Saakashvili, as well as Russia's forceful reassertion of its regional national interests and status as an oil and gas rich, tough international player means America and Europe have yet again helped generate a crisis that tests US global credibility." James Sherr from Chatham House wrote in The Sunday Telegraph: "Russia's regional objectives are ... straightforward. It aims to show its neighbours, by means of the Georgian example, that Russia is 'glavniy' ['number one']: that its contentment is the key to 'stability and security', and that if Russia expresses its discontent, Nato will be unwilling and unable to help. It aims to show Nato that its newest aspirant members are divided, divisible and, in the case of Georgia, reckless. It aims to show both sets of actors that Russia has (in Putin's words) 'earned a right to be self-interested' and that in its own 'zone', it will defend these interests irrespective of what others think about them. For Russia, the broader implications are also becoming straightforward. To its political establishment, to the heads of Gazprom and Rosneft, to its armed forces and security services and to their advisers and 'ideologists', the key point is that the era of Western dominance is over." In The Observer, Thomas de Waal described Georgia's president by saying: "Saakashvili is a famously volatile risk-taker, veering between warmonger and peacemaker, democrat and autocrat. On several occasions international officials have pulled him back from the brink. On a visit to Washington in 2004, he received a tongue-lashing from then Secretary of State Colin Powell who told him to act with restraint. Two months ago, he could have triggered a war with his other breakaway province of Abkhazia by calling for the expulsion of Russian peacekeepers from there, but European diplomats persuaded him to step back. This time he has yielded to provocation and stepped over the precipice. "The provocation is real, but the Georgian President is rash to believe this is a war he can win or that the West wants it. Both George Bush and John McCain have visited Georgia, made glowing speeches praising Saakashvili and were rewarded with the Order of St George. But Bush, at least in public, is now bound to be cautious, calling for a ceasefire. "The reaction in much of Europe will be much less forgiving. Even before this crisis, a number of governments, notably France and Germany, were reporting 'Georgia fatigue'. Though they broadly wished the Saakashvili government well, they did not buy the line that he was a model democrat - the sight last November of his riot police tear-gassing protesters in Tbilisi and smashing up an opposition TV station dispelled that illusion. And they have a long agenda of issues with Russia, which they regard as more important than the post-Soviet quarrel between Moscow and Tbilisi. Paris and Berlin will now say they were right to urge caution on Georgia's Nato ambitions at the Bucharest Nato summit."

"The fighting which broke out over the weekend between Russia and Georgia has brought Israel's intensive involvement in the region into the limelight. This involvement includes the sale of advanced weapons to Georgia and the training of the Georgian army's infantry forces," Arie Egozi reported in the Israeli newspaper Ynet. "Israel began selling arms to Georgia about seven years ago following an initiative by Georgian citizens who immigrated to Israel and became businesspeople. "'They contacted defence industry officials and arms dealers and told them that Georgia had relatively large budgets and could be interested in purchasing Israeli weapons,' says a source involved in arms exports. "The military co-operation between the countries developed swiftly. The fact that Georgia's defence minister, Davit Kezerashvili, is a former Israeli who is fluent in Hebrew contributed to this co-operation. "'His door was always open to the Israelis who came and offered his country arms systems made in Israel,' the source said. 'Compared to countries in Eastern Europe, the deals in this country were conducted fast, mainly due to the defence minister's personal involvement.'" The Jerusalem Post, covering an investigative report in the Israeli daily, Ma'ariv, said: "Israeli defence officials were embarrassed in April when an Israeli-manufactured drone was shot down by the Russians, and again in May when another drone, and a state-of-the-art Israeli rocket system called Lynx, were on display at a Georgian military parade. "The Ma'ariv report said former government minister and Tel Aviv mayor Roni Milo was heavily involved in arms sales to Georgia, as a representative of Elbit and the Israeli Military Industries, and that Brig-Gen (res) Gal Hirsch, one of the senior officers who left the IDF after coming under blistering criticism following the Second Lebanon War, was heavily involved in the country in providing training for infantry and elite units. "According to the Ma'ariv story, the Russians sent a letter to Livni asking Israel to refrain from selling state-of-the-art weaponry to Georgia, and stating that Moscow had acceded to similar requests by Jerusalem in the past." Over the weekend, the Israeli foreign ministry recommended a complete halt to the sale of arms and any security-related equipment to Georgia because of the ongoing fighting. Haaretz said: "Israel's recommendation to halt defence sales to Georgia stems from concern that Russia would choose to retaliate against Jerusalem for its continued military support of Georgia by lifting restrictions on its arms transfers to Iran and Arab states. "'Israel needs to be very careful and sensitive these days,' said a senior political source. 'The Russians are selling many arms to Iran and Syria and there is no need to offer them an excuse to sell even more advanced weapons.' "The source noted that Israel is particularly interested in the transfer of advanced S-300 anti-aircraft missiles to Iran, and therefore Jerusalem must show restraint in its arm sales to Georgia."

Founders: Ines Mena, Claudia Ribas, Simona Agolini, Nourhan Hassan and Therese Hundt

Date started: January 2017, app launched November 2017

Based: Dubai, UAE

Sector: Private/Retail/Leisure

Number of Employees: 18 employees, including full-time and flexible workers

Funding stage and size: Seed round completed Q4 2019 - $1m raised

Funders: Oman Technology Fund, 500 Startups, Vision Ventures, Seedstars, Mindshift Capital, Delta Partners Ventures, with support from the OQAL Angel Investor Network and UAE Business Angels

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

The specs

Engine: 0.8-litre four cylinder

Power: 70bhp

Torque: 66Nm

Transmission: four-speed manual

Price: $1,075 new in 1967, now valued at $40,000

On sale: Models from 1966 to 1970

The%20specs
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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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The%20Specs
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Director: Romany Saad
Starring: Mirfat Amin, Boumi Fouad and Tariq Al Ibyari

SPECS

Engine: Two-litre four-cylinder turbo
Power: 235hp
Torque: 350Nm
Transmission: Nine-speed automatic
Price: From Dh167,500 ($45,000)
On sale: Now

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

COMPANY%20PROFILE
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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 
PSG's line up

GK: Alphonse Areola (youth academy)

Defence - RB: Dani Alves (free transfer); CB: Marquinhos (€31.4 million); CB: Thiago Silva (€42m); LB: Layvin Kurzawa (€23m)

Midfield - Angel di Maria (€47m); Adrien Rabiot (youth academy); Marco Verratti (€12m)

Forwards - Neymar (€222m); Edinson Cavani (€63m); Kylian Mbappe (initial: loan; to buy: €180m)

Total cost: €440.4m (€620.4m if Mbappe makes permanent move)

The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now