Humanitarian aid will build trust for Geneva



After being repeatedly postponed, a date has finally been set for the long hoped-for talks aimed at ending the conflict in Syria. That’s good news, but steps must be taken to make those talks possible and fruitful.

Scheduled to begin in Geneva on January 22, the talks are expected to bring together for the first time officials from Bashar Al Assad’s regime and members of the Syrian opposition to discuss a political transition. The meeting is surely a “huge opportunity”, as Lakhdar Brahimi, the UN special envoy to Syria, has put it, but the challenges are even more mighty.

Syria is on the verge of collapse, with disastrous humanitarian consequences. According to a recent UN estimate, the number of Syrians reliant on foreign aid has risen to 9.3 million, from 6.8 million in June. That includes 6.5 million people displaced inside the country, up from 4.25 million. Another 2.2 million people have fled the country, with that number expected to rise to 3 million by the end of this year.

January is still a long way off, and there is possibility the meeting will be delayed further. Meanwhile, the humanitarian crisis will worsen, unless efforts are made by the international community to tackle the situation.

The hundreds of thousands of men, people who now need much more than aid cannot wait for the Geneva conference to make their voices heard. Each day that passes without a peaceful resolution will displace more people from their homes, and bring more deaths and suffering.

The UN Security Council members must act now by wielding their influence with both the regime and the opposition to ensure safe passage or access to medical and other humanitarian relief. They must make sure that the regime is serious about negotiations and put pressure on it to stop using starvation as a weapon and to immediately start allowing greater humanitarian assistance to besieged areas.

In this regard, the coming weeks will be a major test of the global community’s ability to push for a lasting solution to the conflict.

The conference offers a real possibility for a political solution. But if it fails, the situation will be worse. Those involved in the process have a responsibility not to allow that to happen.

Squid Game season two

Director: Hwang Dong-hyuk 

Stars:  Lee Jung-jae, Wi Ha-joon and Lee Byung-hun

Rating: 4.5/5

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Generation Start-up: Awok company profile

Started: 2013

Founder: Ulugbek Yuldashev

Sector: e-commerce

Size: 600 plus

Stage: still in talks with VCs

Principal Investors: self-financed by founder

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The specs

Engine: Dual 180kW and 300kW front and rear motors

Power: 480kW

Torque: 850Nm

Transmission: Single-speed automatic

Price: From Dh359,900 ($98,000)

On sale: Now

COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4

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.”