• Fighting between the Sudanese Armed Forces and the paramilitary Rapid Support Forces, which intensified on Sunday September 17, led to fires in several buildings in the centre of Khartoum, including the Greater Nile Petroleum Company Tower. All photos: AFP
    Fighting between the Sudanese Armed Forces and the paramilitary Rapid Support Forces, which intensified on Sunday September 17, led to fires in several buildings in the centre of Khartoum, including the Greater Nile Petroleum Company Tower. All photos: AFP
  • The Greater Nile Petroleum Oil Company Tower is in the Nile-side Al Mugran district, close to the centre of Khartoum
    The Greater Nile Petroleum Oil Company Tower is in the Nile-side Al Mugran district, close to the centre of Khartoum
  • Besides the Greater Nile Petroleum Oil Company Tower, buildings belonging to the Justice Ministry, State Authority for Measurements, Tax Authority, and Ministry of Higher Education in Khartoum also caught fire
    Besides the Greater Nile Petroleum Oil Company Tower, buildings belonging to the Justice Ministry, State Authority for Measurements, Tax Authority, and Ministry of Higher Education in Khartoum also caught fire
  • A grab from a UGC video posted on X, formerly Twitter, on September 17, 2023, shows a raging fire inside the Greater Nile Petroleum Oil Company Tower in Khartoum
    A grab from a UGC video posted on X, formerly Twitter, on September 17, 2023, shows a raging fire inside the Greater Nile Petroleum Oil Company Tower in Khartoum
  • It was not clear how the buildings in Khartoum caught fire, but the fighting over a nearby armed forces' headquarters involved artillery and air strikes
    It was not clear how the buildings in Khartoum caught fire, but the fighting over a nearby armed forces' headquarters involved artillery and air strikes

High-rise building on fire in Khartoum as conflict intensifies


Hamza Hendawi
  • English
  • Arabic

An 18-storey building in the centre of Khartoum was engulfed in flames on Sunday as fighting intensified between the army and a rival paramilitary group in the Sudanese capital.

Images posted online showed the Greater Nile Petroleum Oil Company Tower, a conical building with glass facades that had become an emblem of the city, on fire as fighting centred on the armed forces' headquarters in the heart of Khartoum, with fighters from the Rapid Support Forces (RSF) trying to seize the part of the sprawling complex that remains under army control.

The tower is located in the Nile-side Al Mugran district, a short distance away from the city's downtown area.

Four other key buildings in central Khartoum — the Justice Ministry, State Authority for Measurements, Tax Authority and Ministry of Higher Education — were also gutted by fire in the fighting, which was continuing on Sunday afternoon.

The four buildings are about a kilometre away from the armed forces headquarters.

The fighting was taking place near to where army chief Gen Abdel Fattah Al Burhan was stranded for about four months before he was able to slip out last month and leave the capital. He has since been based in the Red Sea city of Port Sudan, visiting Egypt, Qatar, Eritrea, South Sudan and Uganda in the past month.

Video clips posted online on Sunday showed deserted and debris-strewn streets and badly damaged vehicles in central Khartoum with the sound of heavy machinegun fire ringing out in the background. Other clips purported to show fighting inside the armed forces headquarters.

Gen Al Burhan's one-time deputy and ally, RSF commander Gen Mohamed Dagalo, last week threatened to march on Port Sudan. He claimed his fighters were in near total control of the entire Nile-side capital and challenged the army chief's legitimacy as the country's leader.

He has also threatened to set up a governing administration in Khartoum if Gen Al Burhan declares one in Port Sudan. The threat drew warnings from politicians that the country could be heading to effective partition.

It was not immediately clear how the buildings caught fire but the fighting over the nearby armed forces' headquarters involved artillery shelling and air strikes. There has been no word from the army or the RSF on the fires.

The fighting in Sudan boils down to a struggle for political and military supremacy between Gen Al Burhan and Gen Dagalo, who in 2021 staged a joint military coup that toppled the civilian-led government, derailing Sudan's democratic transition and plunging the vast Afro-Arab nation into a political and security crisis.

The conflict has created a massive humanitarian crisis, forcing more than five million of Sudan's 48 million people to flee their homes. More than one million of those sought refuge in neighbouring nations.

There are no reliable estimates for the number of people killed so far but it is widely thought to be in the thousands.

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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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UAE currency: the story behind the money in your pockets
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RESULTS
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Updated: September 18, 2023, 5:27 AM