Fighters loyal to Yemen's government take part in a military parade marking the anniversary of the 1962 revolution, which established the Yemeni republic, in the north-eastern province of Marib. AFP
Fighters loyal to Yemen's government take part in a military parade marking the anniversary of the 1962 revolution, which established the Yemeni republic, in the north-eastern province of Marib. AFP
Fighters loyal to Yemen's government take part in a military parade marking the anniversary of the 1962 revolution, which established the Yemeni republic, in the north-eastern province of Marib. AFP
Fighters loyal to Yemen's government take part in a military parade marking the anniversary of the 1962 revolution, which established the Yemeni republic, in the north-eastern province of Marib. AFP

UN envoy to Yemen Hans Grundberg in Riyadh for talks on truce expansion


Nada AlTaher
  • English
  • Arabic

UN Special Envoy to Yemen Hans Grundberg has visited Riyadh to discuss the expansion of the truce between the government and the Houthi rebel militia with Saudi and Yemeni officials.

The UN-brokered truce, which began in April and has been extended three times in two-month increments, will expire on October 2.

UN officials hope that this iteration of the truce will be expanded beyond two months.

In an interview with Al Jazeera on Monday, Mr Grundberg said he is waiting for the warring parties to respond to a UN proposal for expanding the truce.

“We are entering a sensitive period where we're only less than nine days away from the end of the month of October — we had provided to all parties a proposal for a longer truce and what we want is for them to have a full commitment to see this achievement through and to find a political track for a permanent solution,” Mr Grundberg said.

During the 77th UN General Assembly in New York last week, the head of Yemen's Presidential Leadership Council (PLC) Rashad Al Alimi voiced his support for keeping the truce in place as long as it is not used by the Houthis as a launch pad for more serious escalations.

“The PLC strongly welcomes renewing the truce as long as it does not come at the expense of the future of Yemen's people, while preparations for a bloodier stage ahead are under way and terrorist militias are empowered, threatening not only Yemen or the region but the entire world,” he said.

Mr Al Alimi also said that Houthi breaches of the truce had resulted in the deaths of 300 people in Yemen.

On Monday, Yemenis marked the 60th anniversary of the formation of the republic during the 1962 revolution.

The army held a military parade in the recently liberated governorate of Marib and Yemenis took to the streets, waving flags and shouting patriotic slogans.

People even gathered in the capital Sanaa, where the Houthis took control in a 2014 coup. They have since banned demonstrations and exercise stringent security controls over civilians.

“The right to peaceful assembly and demonstration is a human right guaranteed by law … However, today in Sanaa and on the occasion of September 26, the youth found an opportunity to go out to Al Sabeen Square and express their rejection of the Houthi project and celebrate,” activist Riyadh Aldubai wrote on Twitter.

Rasha Jarhum — founder and director of the Peace Track Initiative, which works closely with the UN — said the celebrations in Sanaa “show that the people are fed up with Houthi rule”.

“The government of Marib's military parade is another message to the Houthis that a military solution is ready.”

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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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9.25pm: Conditions (TB) Dh120,000 (D) 1,900m, Winner: Sanad Libya, Richard Mullen, Satish Seemar.

10pm: Handicap (TB) Dh92,500 (D) 1,400m, Winner: Madkhal, Adrie de Vries, Fawzi Nass.

Updated: September 27, 2022, 2:50 PM