The US is “building a coalition” and will take “every step” to deter Yemen’s Houthi rebels from carrying out attacks in the Red Sea, US National Security Adviser Jake Sullivan said in Tel Aviv on Friday, after the rebels struck two ships in the strategic waterway.
Mr Sullivan’s warning came a day after western diplomats told The National that the US and its allies were studying options to respond to Houthi attacks on Israel-linked ships in the Red Sea, including strikes in their country.
The Iran-backed Houthis have attacked several ships, claiming they were linked to Israel, in support of Hamas. In some cases however, the ships had no clear connection to Israel and at least two were carrying cargo to Italy and a destination in northern Europe.
“The Houthis represent a material threat to freedom of navigation to commercial shipping to lawful commerce, and they're doing so in a vital artery," Mr Sullivan told reporters after meetings with Israeli officials.
“We are building a coalition. We are working to ensure that we rally the nations of the world, all of whom have an interest in seeing this stop.
“This is not about the United States and Israel. This is about the entire international community. And we will continue to take every step that we deem necessary and appropriate to deal with the threat that the Houthis pose.”
Houthi escalation risk
A diplomat involved in Yemen’s peace talks told The National earlier that “western security agencies and diplomatic missions … are studying together with other intelligence agencies how to respond to this increasing threat in the Red Sea, including possibly conducting targeted air strikes”.
On Thursday, Pentagon press secretary Brig Gen Pat Ryder said the US and partners were working to bolster a maritime task force to address the Houthi threat, despite Tehran warning that any proposed multinational task force would be “challenged”.
Meanwhile, the International Chamber of Shipping told The National that more warships are needed in the Red Sea where the US Navy leads multinational task forces, to prevent the escalating Houthi attacks on merchant vessels.
The body that represents nearly all merchant shipping warned that the rebels have become increasingly indiscriminate in launching missiles and drones at ships, with the latest attacks on vessels on Friday.
A US defence official said that attacks from Yemen struck two Liberian-flagged ships in Bab Al Mandeb.
US Central Command later said in a statement posted on X, formerly Twitter, that "forces maintained direct communications with the vessel" and stated the Liberian-flagged Alanya ship "is believed to be travelling safely at this time".
A projectile, believed to be a drone, struck one of the vessels, the German-owned Al Jasrah, causing a fire but no injuries, the official said. Two ballistic missiles were fired in the second attack, one of which struck a vessel, causing a fire, which was eventually extinguished.
It also said the USS Mason destroyer had assisted with the Liberian-flagged MSC Palatium III ship after it issued a mayday call for a fire on board.
The Houthis confirmed in a statement that they carried out "a military operation against two container ships", adding that the ships "were targeted with two naval missiles".
"No injuries have been reported by any of the three ships attacked, but this latest round of attacks is yet another demonstration of the great risk to international shipping caused by these Houthi actions," the Centcom statement concluded.
In the months running up to the current war in Gaza, there had been relative optimism over the prospects of a peace deal in Yemen, which has been ravaged by one of the world's worst humanitarian crises.
Yemen's warring parties were considering a broader ceasefire to allow for crucial peace talks. But the Houthis' actions in support of Hamas in Gaza are jeopardising the process, Yemeni officials have said.
Fighting in Yemen was curtailed by a UN-brokered ceasefire in April last year, despite the truce expiring six months later. In September, Saudi Arabia hosted Houthi representatives for several days of talks, in the first public official visit by a Houthi delegation to the kingdom since the beginning of the war in 2014.
Despite the risks, the Houthis have vowed to continue their attacks in the Red Sea and attempts to strike Israel with drones and missiles as long as the war continues in Gaza, where more than 18,400 Palestinians have been killed in Israeli strikes and shelling since October 7.
On Friday, a Houthi senior official said the Red Sea waters, a strategic route for tankers and cargo ships, “is safe for international trade movement, with the exception of the Zionist enemy’s ships or those sailing to and from its ports, until the aggression against the Palestinian people in Gaza stops, and their food and medicine needs are brought in”.
Bharat
Director: Ali Abbas Zafar
Starring: Salman Khan, Katrina Kaif, Sunil Grover
Rating: 2.5 out of 5 stars
Drivers’ championship standings after Singapore:
1. Lewis Hamilton, Mercedes - 263
2. Sebastian Vettel, Ferrari - 235
3. Valtteri Bottas, Mercedes - 212
4. Daniel Ricciardo, Red Bull - 162
5. Kimi Raikkonen, Ferrari - 138
6. Sergio Perez, Force India - 68
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.”
Medicus AI
Started: 2016
Founder(s): Dr Baher Al Hakim, Dr Nadine Nehme and Makram Saleh
Based: Vienna, Austria; started in Dubai
Sector: Health Tech
Staff: 119
Funding: €7.7 million (Dh31m)
Golden Shoe top five (as of March 1):
Harry Kane, Tottenham, Premier League, 24 goals, 48 points
Edinson Cavani, PSG, Ligue 1, 24 goals, 48 points
Ciro Immobile, Lazio, Serie A, 23 goals, 46 points
Mohamed Salah, Liverpool, Premier League, 23 goals, 46 points
Lionel Messi, Barcelona, La Liga, 22 goals, 44 points
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
