Soldiers loyal to the Aden-based Yemeni government stand before a poster of Rashad Al Alimi, head of the Presidential Leadership Council. AFP
Soldiers loyal to the Aden-based Yemeni government stand before a poster of Rashad Al Alimi, head of the Presidential Leadership Council. AFP
Soldiers loyal to the Aden-based Yemeni government stand before a poster of Rashad Al Alimi, head of the Presidential Leadership Council. AFP
Soldiers loyal to the Aden-based Yemeni government stand before a poster of Rashad Al Alimi, head of the Presidential Leadership Council. AFP

Yemen’s Presidential Leadership Council to restructure army and security forces


Ismaeel Naar
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Yemen’s Presidential Leadership Council has formed a military commission to restructure the army and security apparatus, a statement released on Monday said.

The goal of the newly approved military and security committee is to prevent internal clashes within Yemeni forces and to create a unified joint command, the council said in a statement issued after a meeting headed by its chairman, Gen Rashad Al Alimi.

The council said the decision was in accordance with Article 5 of the agreement announced last month in Riyadh regarding the transfer of power from Yemeni President Abdrabu Mansur Hadi.

The 59-member committee will be headed by Maj Gen Haitham Qassem Taher, with Maj Gen Taher Ali Al Aqili as deputy. It includes Brig Gen Hussein Al Hayal, a former director of the Office of the Minister of Defence, the council said.

“The council also agreed to form a committee to evaluate and restructure the intelligence services, stressing the importance of these committees carrying out their duties in achieving security and stability, and adopting policies that ensure the integration of all military and security forces under a unified national leadership,” said the statement carried by the Saba news agency.

Rashad Al Alimi attends the swearing in of the Presidential Leadership Council during a session of the Yemeni parliament in Aden on April 19, 2022. Reuters
Rashad Al Alimi attends the swearing in of the Presidential Leadership Council during a session of the Yemeni parliament in Aden on April 19, 2022. Reuters

Mr Hadi handed all executive powers to the newly formed Presidential Council last month after removing his vice president, Ali Mohsen Al Ahmar, from office.

The eight-member council includes powerful political and military figures — some involved in the continuing civil war with the Houthi rebel group.

Maj Gen Aidarous Al Zubaidi, the deputy head of the council who also heads the Southern Transitional Council, told The National last month that the council would form bodies to audit and oversee spending. This, he said, was in an attempt to clamp down on corruption in the liberated areas of Yemen.

Yemen’s warring parties met in the Jordanian capital Amman last week to discuss lifting a blockade by the rebels of the country’s third largest city of Taez. The talks were inconclusive.

Lifting the siege is one of the conditions of a two-month UN-brokered truce that began on April 2. Government figures have said it is essential to prospects of extending the nationwide ceasefire, the first in more than six years.

The UN special envoy for Yemen, Hans Grundberg, has voiced hope that the truce could lead to a political solution to the civil war that began when the Houthis seized the capital, Sanaa, in late 2014.

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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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Updated: May 30, 2022, 4:04 PM