In an unprecedented escalation, Washington has sanctioned two Turkish ministers involved in the detention of US pastor Andrew Brunson in the one of the biggest crises between the two Nato allies in recent years.
Tensions have soared over Turkey's detention on terror charges of the American pastor, who was first held in October 2016 and was moved to house arrest last week.
One week after US President Donald Trump and Vice President Mike Pence threatened Ankara with sanctions if Mr Brunson was not released, the Treasury’s Office of Foreign Assets Control (OFAC) designated Turkey’s Minister of Justice Abdulhamit Gul and Minister of Interior Suleyman Soylu, and accused them of “leading roles in the organisations responsible for the arrest and detention of Pastor Brunson”.
He is under house arrest facing espionage charges. He is accused of acting on behalf of two groups deemed by Turkey to be terrorist organisations - the movement led by US-based Muslim preacher Fethullah Gulen who Ankara says was behind the 2016 coup bid and the outlawed Kurdistan Workers' Party (PKK).
Turkey was on Thursday drawing up retaliatory measures to the US sanctions.
The two Turkish officials were targeted under the Global Magnitsky Act and in accordance with Executive Order 13818, "Blocking the property of persons involved in serious human rights abuse or corruption".
“Pastor Brunson’s unjust detention and continued prosecution by Turkish officials is simply unacceptable,” said Treasury Secretary Steven Mnuchin.
Mr Pence weighed in on Twitter, saying the "harsh economic sanctions on Turkey [would] continue until President Erdogan and the Turkish government release Pastor Brunson and return this innocent man of faith to the US".
His language was immediately echoed by President Donald Trump, who had enjoyed a relatively warm relationship with Erdogan and was even reported to have "fist-bumped" the Turkish president at a Nato summit last month.
Turkish Foreign Minister Mevlut Cavusoglu, who is set to meet US Secretary of State Mike Pompeo in the next few days, said the move "will not go without response".
The Senate voted on Wednesday to pass a $716 billion (Dh2,630bn) National Defence Authorisation Act that would that temporarily blocks the delivery of F-35 jets to Turkey.
The Senate voted 87-10 approving the act, which includes a provision to force the Pentagon to halt the transfer until it can provide a report in 90 days to Congress addressing key issues of Turkish behaviour, paticularly its military deals with Russia and detention of Mr Brunson.
On Wednesday, Turkey's Foreign Ministry said: "An equivalent response to this aggressive attitude will be given without delay. There is no doubt that the decision, which disrespectfully intervenes in our judicial system, stands in contrast to the essence of our relations and will seriously damage the constructive efforts made in order to resolve problems between the two countries."
The standoff appears to be one of the most serious crises between Turkey and the United States in modern history, along with the rows over the 1974 Turkish invasion of Cyprus and the 2003 US-led invasion of Iraq.
The sanctions rattled financial markets with the Turkish lira hitting five to the dollar for the first time in history. The currency has lost four percent against the dollar in the last week alone.
Turkish Finance Minister Berat Albayrak, who is Erdogan's son-in-law, insisted the impact on the economy would be "limited".
Aaron Stein, a senior fellow at the Atlantic Council's Rafik Hariri Centre for the Middle East, told The National that the new sanctions "are obviously a big deal, but these seem calibrated to try and limit damage to the Turkish economy, while still making a point".
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Turkish lira falls to record low as US sanctions hit
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“The US is trying to thread the needle here and escalate with Turkey by targeting officials associated with the Brunson case” Mr Stein said. “The point is to, once again, signal that there are consequences for the imprisonment of Americans.”
Aykan Erdemir, a former Turkish parliamentarian and expert at the Foundation for Defence of Democracies, told The National that the move is "unprecedented".
“The US sanctions against ministers of a Nato member are unprecedented. It shows how strained bilateral relations are between Washington and Ankara.”
He blamed Mr Erdogan’s “hostage diplomacy” behind the deterioration.
Mr Erdemir saw the most significant impact of today’s sanctions “will be on Turkey’s economy” in “eroding investor confidence in Turkey and exacerbate devaluation and capital flight”.
US Congress is also considering two legislations to punish Turkey, one that would restrict international loans and another attached to the defence authorisation that would block F-35 deliveries to Ankara.
Ankara and Washington are at odds over American support for a Kurdish militia in Syria and the United States is extremely wary over Turkey's growing cooperation with Russia and its deal to buy Russian air defence systems.
Two Turkish employees of US consulates in Turkey are also currently in jail on terror charges and another is under house arrest, while several Americans have been caught up in the crackdown that followed the failed coup.
Turkey is meanwhile furious the US has failed to extradite Mr Gulen, who lives in rural Pennsylvania, to face trial over the failed coup bid.
The sanctions came as Nato Supreme Allied Commander Europe General Curtis Scaparrotti arrived in Turkey for a visit aimed at easing tension between Ankara and Washington, and co-ordinating efforts in Northern Syria and the city of Manbij. The senior US general in Europe was on Thursday holding talks with Turkish military officials in Ankara but there was no indication the Brunson case would be raised.
The court trying Brunson has repeatedly refused to allow him to go free. The next hearing is October 12 with the pastor facing 35 years in jail if convicted.
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Length 152.4 m
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Draught: 7.4 m
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Lowest Test scores
26 - New Zealand v England at Auckland, March 1955
30 - South Africa v England at Port Elizabeth, Feb 1896
30 - South Africa v England at Birmingham, June 1924
35 - South Africa v England at Cape Town, April 1899
36 - South Africa v Australia at Melbourne, Feb. 1932
36 - Australia v England at Birmingham, May 1902
36 - India v Australia at Adelaide, Dec. 2020
38 - Ireland v England at Lord's, July 2019
42 - New Zealand v Australia in Wellington, March 1946
42 - Australia v England in Sydney, Feb. 1888
Match info
Wolves 0
Arsenal 2 (Saka 43', Lacazette 85')
Man of the match: Shkodran Mustafi (Arsenal)
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
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%20PROFILE
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TEACHERS' PAY - WHAT YOU NEED TO KNOW
Pay varies significantly depending on the school, its rating and the curriculum. Here's a rough guide as of January 2021:
- top end schools tend to pay Dh16,000-17,000 a month - plus a monthly housing allowance of up to Dh6,000. These tend to be British curriculum schools rated 'outstanding' or 'very good', followed by American schools
- average salary across curriculums and skill levels is about Dh10,000, recruiters say
- it is becoming more common for schools to provide accommodation, sometimes in an apartment block with other teachers, rather than hand teachers a cash housing allowance
- some strong performing schools have cut back on salaries since the pandemic began, sometimes offering Dh16,000 including the housing allowance, which reflects the slump in rental costs, and sheer demand for jobs
- maths and science teachers are most in demand and some schools will pay up to Dh3,000 more than other teachers in recognition of their technical skills
- at the other end of the market, teachers in some Indian schools, where fees are lower and competition among applicants is intense, can be paid as low as Dh3,000 per month
- in Indian schools, it has also become common for teachers to share residential accommodation, living in a block with colleagues
Profile of Tamatem
Date started: March 2013
Founder: Hussam Hammo
Based: Amman, Jordan
Employees: 55
Funding: $6m
Funders: Wamda Capital, Modern Electronics (part of Al Falaisah Group) and North Base Media
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
Business Insights
- Canada and Mexico are significant energy suppliers to the US, providing the majority of oil and natural gas imports
- The introduction of tariffs could hinder the US's clean energy initiatives by raising input costs for materials like nickel
- US domestic suppliers might benefit from higher prices, but overall oil consumption is expected to decrease due to elevated costs
Teams
India (playing XI): Virat Kohli (c), Ajinkya Rahane, Rohit Sharma, Mayank Agarwal, Cheteshwar Pujara, Hanuma Vihari, Ravichandran Ashwin, Ravindra Jadeja, Wriddhiman Saha (wk), Ishant Sharma, Mohammed Shami
South Africa (squad): Faf du Plessis (c), Temba Bavuma, Theunis de Bruyn, Quinton de Kock, Dean Elgar, Zubayr Hamza, Keshav Maharaj, Aiden Markram, Senuran Muthusamy, Lungi Ngidi, Anrich Nortje, Vernon Philander, Dane Piedt, Kagiso Rabada, Rudi Second
Panipat
Director Ashutosh Gowariker
Produced Ashutosh Gowariker, Rohit Shelatkar, Reliance Entertainment
Cast Arjun Kapoor, Sanjay Dutt, Kriti Sanon, Mohnish Behl, Padmini Kolhapure, Zeenat Aman
Rating 3 /5 stars
GULF MEN'S LEAGUE
Pool A Dubai Hurricanes, Bahrain, Dubai Exiles, Dubai Tigers 2
Pool B Abu Dhabi Harlequins, Jebel Ali Dragons, Dubai Knights Eagles, Dubai Tigers
Opening fixtures
Thursday, December 5
6.40pm, Pitch 8, Abu Dhabi Harlequins v Dubai Knights Eagles
7pm, Pitch 2, Jebel Ali Dragons v Dubai Tigers
7pm, Pitch 4, Dubai Hurricanes v Dubai Exiles
7pm, Pitch 5, Bahrain v Dubai Eagles 2
Recent winners
2018 Dubai Hurricanes
2017 Dubai Exiles
2016 Abu Dhabi Harlequins
2015 Abu Dhabi Harlequins
2014 Abu Dhabi Harlequins
The Sand Castle
Director: Matty Brown
Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea
Rating: 2.5/5
