Fabrizio Carboni, International Red Cross Committee regional director for the Near and Middle East. AFP
Fabrizio Carboni, International Red Cross Committee regional director for the Near and Middle East. AFP
Fabrizio Carboni, International Red Cross Committee regional director for the Near and Middle East. AFP
Fabrizio Carboni, International Red Cross Committee regional director for the Near and Middle East. AFP

Red Cross: violence in Yemen will cause systemic failure


Mina Aldroubi
  • English
  • Arabic

Yemen will suffer systemic failure if violence in the country does not end, a top humanitarian official told The National this week as fighting in the northern city of Marib intensified.

Marib, a strategically important trading centre, has experienced an increase in fighting between the government and Houthi rebels in recent weeks, trapping hundreds of thousands of civilians in the crossfire.

“The systemic failure of Yemen is around the corner; the focus has been on systemic fighting and not on rehabilitation, reconstruction and providing basic services,” said Fabrizio Carboni, regional director for the Near and Middle East for the International Committee of the Red Cross.

Marib is now almost surrounded by the Iran-backed rebels after an offensive that began in February.

“Today the violence is really high, we’ve asked the parties to really be careful, but, at the end of the day it’s the parties themselves who have to reach a conclusion [to stop the fighting],” Mr Carboni said during a visit to Beirut.

UN-led efforts to engineer a nationwide ceasefire have stalled as the warring sides failed to come to an agreement. The UN says more than six years of war in Yemen has created the world’s biggest humanitarian crisis.

Since the latest escalation in Marib, the ICRC has been in contact with both sides to ensure that assistance reaches affected civilians.

The ICRC says the fighting endangers more than one million civilians who were displaced from other parts of Yemen. Many families have already been forced to flee from displacement camps.

“There is a concern that people are trapped because of the fighting in the city, and the other concern is if they are displaced and moving in big quantities, we won’t know where they are going,” Mr Carboni said.

“We don’t see the next urban centre that could hold so many people,” he said.

“Those in Marib have been displaced so many times, the question is where will they go?”

The ancient city sits on a network of roads that could give the Houthis several options for advancing into the government-controlled southern half of Yemen.

Donor fatigue

ICRC officials have been battling donor fatigue for years to raise funds for Yemen's battered healthcare system, economy and infrastructure to fight looming famines.

Yemen’s health care faces the threat of institutional collapse, in large part because of the ongoing conflict, and needs a great amount of money.

"Donors have difficult times to mobilise funds for places like Yemen, Syria and Iraq because there’re other countries facing crises, such as Libya and Tigray [in Ethiopia]," Mr Carboni said.

The ICRC has been pleading with donor countries for financial assistance to meet "the bare minimum of humanitarian actions".

"We are not talking about luxury, but bare minimum," Mr Carboni said. "I hope the donors can see this as a duty that goes beyond politics."

Earlier this year, an online conference held by the UN and co-hosted by Sweden and Switzerland fell far short of its aid goal for Yemen.

More than 100 governments and donors worked to raise $3.85 billion to help civilians, but in the end only $1.7bn was pledged.

"If we are not there then there’s nothing, and nothing leads to traumatic situations," Mr Carboni said.

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MATCH INFO

Mainz 0

RB Leipzig 5 (Werner 11', 48', 75', Poulsen 23', Sabitzer 36')

Man of the Match: Timo Werner (RB Leipzig)

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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Date started: December 2015

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Sector: Technology and home services

Based: Jumeirah Lake Towers, Dubai

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Funding:  The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups. 

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"They see their tomorrows slipping out of their reach. And though it seems to them that everything outside this reality is heaven, yet they do not want to go to that heaven. They stay, because they are afflicted with hope." - Mahmoud Darwish, to attendees of the Palestine Festival of Literature, 2008

His life in brief: Born in a village near Galilee, he lived in exile for most of his life and started writing poetry after high school. He was arrested several times by Israel for what were deemed to be inciteful poems. Most of his work focused on the love and yearning for his homeland, and he was regarded the Palestinian poet of resistance. Over the course of his life, he published more than 30 poetry collections and books of prose, with his work translated into more than 20 languages. Many of his poems were set to music by Arab composers, most significantly Marcel Khalife. Darwish died on August 9, 2008 after undergoing heart surgery in the United States. He was later buried in Ramallah where a shrine was erected in his honour.

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MATCH INFO

Scotland 59 (Tries: Hastings (2), G Horne (3), Turner, Seymour, Barclay, Kinghorn, McInally; Cons: Hastings 8)

Russia 0

Updated: October 15, 2021, 8:41 AM