Pro-Houthi soldiers patrol a street in Sanaa in June. EPA
Pro-Houthi soldiers patrol a street in Sanaa in June. EPA
Pro-Houthi soldiers patrol a street in Sanaa in June. EPA
Pro-Houthi soldiers patrol a street in Sanaa in June. EPA

Omani delegation visits Sanaa in last-ditch effort to renew Yemen truce


Nada AlTaher
  • English
  • Arabic

An Omani delegation has arrived in Yemen's rebel-held capital to discuss extending a nationwide ceasefire that expires on Tuesday, Houthi media reported on Sunday.

The UN-brokered truce that went into effect on April 2 was extended for another two months in June. It has provided a window of relative calm after seven years of civil war and has been seen as an opportunity for the warring sides to reach a political agreement to end the conflict.

The Omani delegation's visit coincided with UN envoy Hans Grundberg's meeting with the Houthis in Sanaa, after talks with the government now based in the southern city of Aden.

Mr Grundberg has suggested that a third extension of the truce could be for a longer period than two months.

The UN and the US have intensified efforts to extend the truce despite some of its terms not being met, in particular the reopening of roads around the rebel-besieged city of Taez.

US Secretary of State Antony Blinken spoke by phone to the head of Yemen's presidential council, Rashad Al Alimi, on Sunday, a day after speaking to Oman's Foreign Minister Sayyid Badr Al Busaidi, about the importance of renewing the truce.

Mr Blinken described the ceasefire as Yemen's "best opportunity for peace in years".

Mr Al Alimi highlighted to Mr Blinken the "failed experiments of appeasing Houthi militia, and most recently the UN truce," state news agency Saba reported.

"The Houthi militia relinquished all its commitments included in the truce, including its continuous siege on Taez and other provinces," Saba quoted him as saying.

The government's demand for the Houthis to reopen the roads around Taez, Yemen's third-largest city, remains one of the biggest sticking points for extending the truce. Mr Al Alimi refused to meet Mr Grundberg in Aden because of his anger over the issue, sources told The National last week.

Despite a significant reduction in violence, both sides accuse each other of violating the truce. Most recently, the Houthis conducted an attack in Taez that killed a child and wounded 11 others. The Armed Conflict Location and Event Data Project has recorded 1,173 "shelling, artillery or missile attacks" since April 2, but no air strikes.

It also said 228 drone strikes have taken place since April 2.

From its side, the government allowed fuel imports to enter the Houthi-controlled port of Hodeidah and the operation of civilian flights between Amman in Jordan and Cairo in Egypt.

Government officials have accused the rebels of allowing passengers with Houthi-issued passports, which it does not recognise, to board the flights, including non-Yemenis.

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Crops that could be introduced to the UAE

1: Quinoa 

2. Bathua 

3. Amaranth 

4. Pearl and finger millet 

5. Sorghum

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: August 01, 2022, 9:45 AM