Crackdown in Bahrain risks widening sectarian rift across region, experts warn



WASHINGTON // The crackdown on mostly peaceful protesters in Bahrain risks deepening divisions in the country and widening a Sunni-Shiite sectarian rift across the region. The deployment of Gulf Cooperation Council security forces, moreover, could serve to bolster Iran and has already caused a diplomatic fall-out with the US.

The Bahraini government yesterday announced it had restored order in the country after Bahraini forces, backed by tanks and helicopters, cleared protestors from the Pearl Roundabout in Manama and elsewhere and imposed a 12-hour, nationwide curfew.

The country had almost ground to a halt after a month of protests, and reports in recent days suggested demonstrators had begun putting up ad hoc checkpoints as talks between the government and opposition figures failed to get off the ground.

But the violent crackdown - three protesters and three police were killed and hundreds wounded, security forces were reported to have prevented ambulances from reaching hospitals and opposition leaders were rounded up and arrested - is at best likely only to provide temporary calm.

The underlying structural problem that brought people into the streets in the first place, the systemic disenfranchisement of Bahrain's Shiite majority, which has been exacerbated by an economic downturn that hit Bahrain harder than other countries in the region, remains unaddressed.

Any negotiations between the government and opposition figures will only prove harder in the wake of the crackdown, which is likely to polarise opinions and marginalise those in Bahrain who transcend the sectarian divide.

Jean-Francois Seznec, visiting associate professor at the Center for Contemporary Arab Studies at Georgetown University, aaid: "The centre, which was really occupied by liberal Sunnis and liberal Shiites, has exploded. Now the communities are at each other's throat."

Much will depend now on whether the government will move forward on reforms and if the opposition can cobble together a joint platform.

Some suggest that re-asserting government control was a necessary step for any movement and that the opposition had pushed too hard, too long.

Roby Barrett, a Gulf security expert and a scholar with the Middle East Institute in Washington, said: "I think there was a misreading by protestors of the strength of their position." Dr Barrett said the lack of traction in negotiations had been largely due to protesters refusing to temper their demands - "the government is not going to commit political suicide" - and left the regime with a choice of either allowing a "continued slide into chaos" or clearing the streets.

Having made the decision to clamp down, the smartest approach, Dr Barrett suggested, was to ask for GCC involvement, in part to defuse any international criticism a security operation would invite.

If that was the intention, it seems to have partially worked.

Before the GCC force moved in, Bahrain had been under pressure from the US administration to enact serious reforms and enter into a dialogue with the opposition.

"Baby steps" were not enough and there could be no return to the status quo, Robert Gates, the US secretary of defence, had said on a visit to Manama on Saturday, just two days before Saudi Arabia and the UAE sent in forces in response to a request from King Hamad bin Issa al Khalifa

That deployment seemed to take Washington by surprise. The involvement of Saudi Arabia in particular, the US's most important ally in the region, has complicated the picture for the US administration. There has so far been no call for the GCC to remove its troops.

"I think it's a message to the US," Mr Seznec said. "The GCC was basically saying that 'you're not going to dictate how the political system of the region is managed'."

But the administration has been critical. Hillary Clinton, the US secretary of state, told CBS news yesterday that Bahrain and the GCC are "on the wrong track. There is no security answer to this." Barack Obama, the US president, in calls on Wednesday to both King Abdullah of Saudi Arabia and King Hamad of Bahrain, has urged both countries to exercise "maximum restraint".

It is a measure of the seriousness with which GCC countries viewed the situation in Bahrain that they would risk a diplomatic fall-out with the US by sending in troops, a questionable move even under the GCC charter, which forbids interference in the internal affairs of a member country.

On the other hand, the GCC has signalled that it will play an active, if not leading, role in any international intervention in Libya, for which the US has keenly sought Arab participation. The Council was also out ahead of the Arab League in calling for a no-fly zone to be imposed.

Moreover, with the GCC set to collectively spend some US$80 billion on American arms in 2011, member countries may reasonably have calculated that the US response would be restrained. The US navy base in Bahrain is also of key strategic importance.

Thomas Lippman of the Council on Foreign Relations said: "It's not as if the Americans are going to pack up the 5th Fleet and move it out because we're mad at them."

Nevertheless, Mr Lippman argued that the deployment of GCC troops to Bahrain was "potentially very counterproductive" because it would serve to exacerbate regional sectarian tensions.

Indeed, on Wednesday, Moqtada al Sadr, a senior Iraqi Shiite cleric, called for mass demonstrations in Baghdad and Basra in support of Shiite demonstrators in Bahrain. Saudi Arabia has a sizeable Shiite minority with grievances of its own, and the involvement of GCC troops in Bahrain could create a situation where collectively, Shiites feel "rejected, put down and more oppressed," Mr Lippman said.

That in turn, he said, will cause Arab Shiites with no real attachment to Iran - which has described the deployment of GCC troops in Bahrain as an "invasion" - to ask where their interests are best protected.

"The Iranians don't have to do anything but sit and watch," Mr Lippman said. "Things are breaking their way."

Family reunited

Nazanin Zaghari-Ratcliffe was born and raised in Tehran and studied English literature before working as a translator in the relief effort for the Japanese International Co-operation Agency in 2003.

She moved to the International Federation of Red Cross and Red Crescent Societies before moving to the World Health Organisation as a communications officer.

She came to the UK in 2007 after securing a scholarship at London Metropolitan University to study a master's in communication management and met her future husband through mutual friends a month later.

The couple were married in August 2009 in Winchester and their daughter was born in June 2014.

She was held in her native country a year later.

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The Sand Castle

Director: Matty Brown

Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

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: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
Investments: Grants/private funding
COMPANY PROFILE
Name: HyperSpace
 
Started: 2020
 
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
 
Based: Dubai, UAE
 
Sector: Entertainment 
 
Number of staff: 210 
 
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
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Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

It's Monty Python's Crashing Rocket Circus

To the theme tune of the famous zany British comedy TV show, SpaceX has shown exactly what can go wrong when you try to land a rocket.

The two minute video posted on YouTube is a compilation of crashes and explosion as the company, created by billionaire Elon Musk, refined the technique of reusable space flight.

SpaceX is able to land its rockets on land  once they have completed the first stage of their mission, and is able to resuse them multiple times - a first for space flight.

But as the video, How Not to Land an Orbital Rocket Booster, demonstrates, it was a case if you fail, try and try again.

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If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.