The decaying oil tanker FSO Safer off the Yemeni port of Ras Isa. AFP
The decaying oil tanker FSO Safer off the Yemeni port of Ras Isa. AFP
The decaying oil tanker FSO Safer off the Yemeni port of Ras Isa. AFP
The decaying oil tanker FSO Safer off the Yemeni port of Ras Isa. AFP

UN vessel en route to Yemen to collect oil from decaying tanker


Mina Aldroubi
  • English
  • Arabic

A UN supertanker left China on Friday on a mission to collect more than a million barrels of crude stored on a decaying vessel off Yemen's west coast and prevent a devastating oil spill in the Red Sea.

The UN Development Programme purchased the crude carrier Nautica in March after Yemen's Houthi rebels, who control much of the western coastline, agreed to a plan last year to remove the oil stored aboard the FSO Safer.

“The departure of the Nautica, and its onward journey to the Red Sea, is a significant next step in the complex operation to take on the oil from the Safer,” UNDP chief Achim Steiner said in a statement.

It is not clear how long it will take the supertanker to reach Yemen, where a civil war that began in 2014 has prevented the FSO Safer from receiving proper maintenance.

Mr Steiner called for urgent contributions to fund the operation, which was $34 million short of its $129 million budget as of April 4.

The UN even launched a crowdfunding page with a target of raising $500,000.

“We are in a race against time and I urge leaders in government, CEOs of corporations and any individual in a position to contribute to step forward and support us in keeping this operation, that is fast reaching a critical stage, on track,” Mr Steiner said.

The statement cited “spiralling costs” for very large crude carriers like the Nautica, known as VLCCs, in a market affected by the war in Ukraine.

“We have the best available technical expertise and political support from all sides,” said David Gressly, the UN resident and humanitarian co-ordinator for Yemen, who has been a key figure in the talks on the operation.

“We just need the final piece of funding this month to ensure success” and prevent “a catastrophe”, he said.

The UN has been raising funds for the operation since May last year.

UN officials have been negotiating for years with the Houthis to get experts on board the FSO Safer to assess its condition.

The Iran-backed rebels control Red Sea ports including Ras Isa, just six kilometres from where the Safer is moored.

Experts have said a spill from tanker would cause an ecological disaster that could also affect shipping through the Bab Al Mandeb between Africa and the Arabian Peninsula and through the Suez Canal.

Efforts increased to end war

The UN's oil recovery operation comes amid increased efforts to end the war between the Houthis and the internationally recognised government, which has been supported by a Saudi-backed coalition.

The real issue right now is the Houthis accepting the government's terms for pushing forward the peace process, Hamzah Al Kamaly, Yemen's Deputy Youth Minister, told The National.

A UN-brokered peace deal that halted the fighting for six months expired in October, though diplomacy has continued and full-scale conflict has not resumed.

The truce collapsed after the rebels did not agree to renew.

“The Saudis have been shuttling between the two sides about getting them to agree to renew the truce and forming a negotiations delegation,” Mr Al Kamaly said.

The talks have also focused on unifying the central bank and reopening roads across the country, and will continue for a while, he said.

The head of Yemen's Presidential Leadership Council, Rashad Al Alimi, met Saudi Arabia's Defence Minister Prince Khalid bin Salman on Thursday.

The PLC's eight-member team gathered in Riyadh this week to discuss the continuing political efforts.

Frankenstein in Baghdad
Ahmed Saadawi
​​​​​​​Penguin Press

Libya's Gold

UN Panel of Experts found regime secretly sold a fifth of the country's gold reserves. 

The panel’s 2017 report followed a trail to West Africa where large sums of cash and gold were hidden by Abdullah Al Senussi, Qaddafi’s former intelligence chief, in 2011.

Cases filled with cash that was said to amount to $560m in 100 dollar notes, that was kept by a group of Libyans in Ouagadougou, Burkina Faso.

A second stash was said to have been held in Accra, Ghana, inside boxes at the local offices of an international human rights organisation based in France.

FFP EXPLAINED

What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.

What the rules dictate? 
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.

What are the penalties? 
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.

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Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 

Springtime in a Broken Mirror,
Mario Benedetti, Penguin Modern Classics

 

UK’s AI plan
  • AI ambassadors such as MIT economist Simon Johnson, Monzo cofounder Tom Blomfield and Google DeepMind’s Raia Hadsell
  • £10bn AI growth zone in South Wales to create 5,000 jobs
  • £100m of government support for startups building AI hardware products
  • £250m to train new AI models
MATCH INFO

Champions League quarter-final, first leg

Tottenham Hotspur v Manchester City, Tuesday, 11pm (UAE)

Matches can be watched on BeIN Sports

Villains
Queens of the Stone Age
Matador

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.”

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

The bio

Who inspires you?

I am in awe of the remarkable women in the Arab region, both big and small, pushing boundaries and becoming role models for generations. Emily Nasrallah was a writer, journalist, teacher and women’s rights activist

How do you relax?

Yoga relaxes me and helps me relieve tension, especially now when we’re practically chained to laptops and desks. I enjoy learning more about music and the history of famous music bands and genres.

What is favourite book?

The Perks of Being a Wallflower - I think I've read it more than 7 times

What is your favourite Arabic film?

Hala2 Lawen (Translation: Where Do We Go Now?) by Nadine Labaki

What is favourite English film?

Mamma Mia

Best piece of advice to someone looking for a career at Google?

If you’re interested in a career at Google, deep dive into the different career paths and pinpoint the space you want to join. When you know your space, you’re likely to identify the skills you need to develop.  

 

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

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Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

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MATCH INFO

Fixture: Thailand v UAE, Tuesday, 4pm (UAE)

TV: Abu Dhabi Sports

Updated: April 07, 2023, 7:13 AM