Eleven people were reportedly killed as the US conducted “precision air strikes” in eastern Syria after the death of an American contractor in a drone attack on a US coalition base near Hasakah in north-east Syria on Thursday.
The US Central Command forces conducted air strikes against facilities used by groups affiliated with Iran’s Islamic Revolutionary Guard Corps, in response to the drone strike.
The Syrian Observatory for Human Rights said 11 people were killed in the US attack, including two Syrians.
"US strikes targeted a weapons depot inside Deir Ezzor city, killing six pro-Iran fighters, and two other fighters were killed by strikes targeting the desert of Al Mayadeen, and three others near Albu Kamal," said the UK-based watchdog, which has a wide network of sources on the ground in Syria.
The unmanned aerial vehicle that killed the contractor had hit a coalition maintenance plant, the Pentagon said.
"My heart and deepest condolences to the family of American we lost and wish the speedy recovery for those who are wounded," US President Joe Biden said on Friday.
"Make no mistake, the United States does not, does not, I emphasise, seek conflict with Iran. But be prepared for us to act forcefully to protect our people."
The intelligence community assessed the drone to be of Iranian origin, the Pentagon added.
“The air strikes were conducted in response to today’s attack as well as a series of recent attacks against coalition forces in Syria by groups affiliated with the IRGC,” said Secretary of Defence Lloyd Austin.
The department said the strikes were “intended to protect and defend US personnel”.
“The United States took proportionate and deliberate action intended to limit the risk of escalation and minimise casualties,” it said.
Mr Austin said he authorised the retaliatory strikes at the direction of Mr Biden.
“As President Biden has made clear, we will take all necessary measures to defend our people and will always respond at a time and place of our choosing,” he said.
“No group will strike our troops with impunity.”
Two of the wounded service members were treated on site, while three others and the US contractor were taken to coalition medical facilities in Iraq, the department said.
The US confirmed reports of another attack on a base in north-east Syria on Friday following its retaliatory air strikes but said there were no casualties.
"It is not uncommon, when we take a retaliatory strike like this, for them to answer right back with some ineffective rocket fire — and these were largely, completely ineffective," National Security Council spokesman John Kirby said.
"Nobody was hurt, no US casualties at all."
'Necessary measures' to defend people
Centcom said Thursday's drone attack “was another in a series of attacks on our troops and partner forces”.
“This evening, we responded to an attack on our forces that killed an American contractor and wounded our troops and another American contractor by striking facilities used by groups affiliated with Iran’s Islamic Revolutionary Guard Corps,” Centcom said.
“Our troops remain in Syria to ensure the enduring defeat of ISIS, which benefits the security and stability of not only Syria, but the entire region.”
Overnight, social media users posted videos showing explosions said to have taken place in Syria’s Deir Ezzor, a strategic province that borders Iraq and contains oilfields.
Iran-backed militia groups and Syrian forces control the area, which has been hit by suspected Israeli air strikes in recent months, allegedly targeting Iranian supply routes.
The US deploys about 900 troops in bases and posts across north-eastern Syria as part of the international coalition fighting remnants of ISIS.
American troops also support the Syrian Democratic Forces (SDF), the Kurds' de facto army in the area, which led the battle that dislodged ISIS from the last scraps of their Syrian territory in 2019.
The US personnel have frequently been targeted in attacks by militia groups.
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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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