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The freighter MV Rubymar, which was targeted in an attack by Houthi rebels on February 18, has sunk in the Red Sea, Yemen's government said on Saturday.
Experts told The National last week that the failure to recover the ship could lead to an environmental disaster as its cargo of more than 20,000 tonnes of fertiliser could damage the region’s fragile ecology.
Yemeni Prime Minister Ahmed Awad Bin Mubarak said the ship's sinking was an “environmental catastrophe that Yemen and the region have never experienced before”.
“It is a new tragedy for our country and our people. Every day, we pay for the Houthi militia’s adventures, which were not stopped at plunging Yemen into the coup disaster and war,” he wrote on X, formerly Twitter.
The Rubymar was heading for Bulgaria when it was struck by Yemen's Houthis, who have been attacking commercial vessels in the Red Sea since November, in a campaign the group says is aimed at disrupting global trade to put pressure on Israel to withdraw from the Gaza Strip.
The ship had been taking on water since it was hit by two Houthi ballistic missiles, one of which pierced its side. Photos released showed the vessel's stern submerged to deck level. Fuel leaking from the ship had created a 30km-long slick.
The Rubymar is the first vessel to be sunk since Iran-aligned Houthi forces began drone and missile attacks in mid-November against international commercial shipping in the Red Sea and the Bab Al Mandeb – a route that accounts for about 12 per cent of the world's shipping traffic.
The militia has vowed to continue their attacks as long as Israel continues to commit “crimes” against Palestinians.
The ship’s cargo of fertiliser could have disastrous ecological consequences in the Red Sea, according to Sammy Kayed, an environmental expert who has worked with the UN.
The area is home to a delicate aquatic ecosystem with coral reefs as far south as the Bab Al Mandeb.
“Essentially, a fertiliser spill would cause a rapid nutrient increase, which means it gives a lot of food or nutrition for algae to bloom rapidly and this will disrupt the balance of marine ecosystems,” Mr Kayed told The National.
“And then you'd have oxygen depletion, where the algae breaks down and consumes a lot of oxygen and leads to very low dissolved oxygen levels, which leads to dead zones where aquatic life can't survive,” he said.
“If the current takes the spill towards the coast where the corals are, the algae brooms would block and deprive coral reefs of sunlight and that would cause serious damage to coral reefs,” he said.
“If there is a lot of ammonium in the water it can also be toxic to marine organisms. It will damage gills, cause respiratory stress or failure, and neurological effects.
“All this puts stress on a very biodiverse part of the world. Southern Red Sea coral reefs are some of the most pristine and undisturbed in the world.”
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Name: Tratok Portal
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Size: 36 employees
Funding: Privately funded
In the Restaurant: Society in Four Courses
Christoph Ribbat
Translated by Jamie Searle Romanelli
Pushkin Press
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Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
Intercontinental Cup
Namibia v UAE Saturday Sep 16-Tuesday Sep 19
Table 1 Ireland, 89 points; 2 Afghanistan, 81; 3 Netherlands, 52; 4 Papua New Guinea, 40; 5 Hong Kong, 39; 6 Scotland, 37; 7 UAE, 27; 8 Namibia, 27
The major Hashd factions linked to Iran:
Badr Organisation: Seen as the most militarily capable faction in the Hashd. Iraqi Shiite exiles opposed to Saddam Hussein set up the group in Tehran in the early 1980s as the Badr Corps under the supervision of the Iran Revolutionary Guards Corps (IRGC). The militia exalts Iran’s Supreme Leader Ali Khamenei but intermittently cooperated with the US military.
Saraya Al Salam (Peace Brigade): Comprised of former members of the officially defunct Mahdi Army, a militia that was commanded by Iraqi cleric Moqtada Al Sadr and fought US and Iraqi government and other forces between 2004 and 2008. As part of a political overhaul aimed as casting Mr Al Sadr as a more nationalist and less sectarian figure, the cleric formed Saraya Al Salam in 2014. The group’s relations with Iran has been volatile.
Kataeb Hezbollah: The group, which is fighting on behalf of the Bashar Al Assad government in Syria, traces its origins to attacks on US forces in Iraq in 2004 and adopts a tough stance against Washington, calling the United States “the enemy of humanity”.
Asaeb Ahl Al Haq: An offshoot of the Mahdi Army active in Syria. Asaeb Ahl Al Haq’s leader Qais al Khazali was a student of Mr Al Moqtada’s late father Mohammed Sadeq Al Sadr, a prominent Shiite cleric who was killed during Saddam Hussein’s rule.
Harakat Hezbollah Al Nujaba: Formed in 2013 to fight alongside Mr Al Assad’s loyalists in Syria before joining the Hashd. The group is seen as among the most ideological and sectarian-driven Hashd militias in Syria and is the major recruiter of foreign fighters to Syria.
Saraya Al Khorasani: The ICRG formed Saraya Al Khorasani in the mid-1990s and the group is seen as the most ideologically attached to Iran among Tehran’s satellites in Iraq.
(Source: The Wilson Centre, the International Centre for the Study of Radicalisation)
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Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
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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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