A fighter with the Iraqi Kataeb Hezbollah militia group inspects the site of a US air strike in Hilla, Iraq. Reuters
A fighter with the Iraqi Kataeb Hezbollah militia group inspects the site of a US air strike in Hilla, Iraq. Reuters
A fighter with the Iraqi Kataeb Hezbollah militia group inspects the site of a US air strike in Hilla, Iraq. Reuters
A fighter with the Iraqi Kataeb Hezbollah militia group inspects the site of a US air strike in Hilla, Iraq. Reuters

US strikes sites used by Iran-backed forces in Iraq


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The US military carried out strikes on three sites used by Iran-backed forces in Iraq on Monday after an attack wounded three American personnel the previous day, drawing a protest from the Iraqi government.

The strikes hit bases of the Popular Mobilisation Forces, a state-linked paramilitary organisation, in the cities of Hilla, Juraf Al Sakhar and Suwaira in central Iraq, according to posts on Telegram channels linked to Iran-backed Shiite militias.

The Iraqi government condemned the “targeting of Iraqi military sites by the US” as an “unacceptable infringement to the Iraqi sovereignty”, said Maj Gen Yahya Rasool, a military representative for Prime Minister Mohammed Shia Al Sudani.

He said one paramilitary member was killed and 18 others wounded, including civilians.

“It is a clear and unconstructive hostile act that doesn't help the long-term joint interests in establishing security and stability, and contradicts the declared desire by the US to enhance relations with Iraq,” Brig Gen Rasool said.

He warned that “this step negatively affects bilateral relations between the two countries and complicates avenues for reaching understandings through mutual dialogue to end the presence of the [US-led] International Coalition” against ISIS.

A video on social media showed the site in Hilla littered with debris and a car in flames as firefighters battled to put out fire. A dormitory of the city's university nearby was damaged.

Another video showed several wounded men on stretchers receiving treatment.

Washington has repeatedly targeted sites used by Iran and its proxy forces in Iraq and Syria in response to dozens of attacks on American and allied forces in the region since the October 7 outbreak of the Israel-Hamas war.

“US military forces conducted necessary and proportionate strikes on three facilities used by Kataeb Hezbollah and affiliated groups in Iraq,” Defence Secretary Lloyd Austin said.

“These precision strikes are a response to a series of attacks against US personnel in Iraq and Syria by Iranian-sponsored militias, including an attack by Iran-affiliated Kataeb Hezbollah and affiliated groups on Erbil Air Base earlier today,” he said.

Three US military personnel were wounded, one critically, in the drone attack, US National Security Council spokeswoman Adrienne Watson said.

It came hours after Iran announced that a commander in its Islamic Revolutionary Guard Corps, Brig Gen Razi Mousavi, had been killed in a suspected Israeli strike in Syria.

President Joe Biden was briefed on the attack, which was carried out with a one-way attack drone, and directed the strikes in a call with Mr Austin and other national security officials after ordering the Defence Department to prepare a response, Ms Watson said.

Mr Biden “places no higher priority than the protection of American personnel serving in harm's way”.

“The United States will act at a time and in a manner of our choosing should these attacks continue,” she added.

The drone attack was claimed by the Islamic Resistance in Iraq, a loose formation of armed groups affiliated with the Popular Mobilisation Forces, a coalition of former paramilitaries that are now integrated into Iraq's regular armed forces.

Meanwhile, a US defence official confirmed on Tuesday that several rockets had been launched against US and coalition forces at Patrol Base Shaddadi in Syria.

The official told The National that there were “no casualties and no damage to infrastructure”.

That brings total attacks against US forces to at least 105 since October 17, the official added, including 49 in Iraq and 56 in Syria.

Most of these have been claimed by the Islamic Resistance in Iraq, which opposes US support for Israel in its war against Hamas in the Gaza Strip.

The latest round of the Israel-Hamas conflict began when the Palestinian militant group carried out a shock cross-border attack from Gaza on October 7 that killed about 1,140 people, mostly civilians, according to an AFP tally based on Israeli figures.

Following the attack, the US rushed military aid to Israel, which has carried out a relentless campaign in Gaza that has killed more than 20,600 people, also mostly civilians, according to the Hamas-run territory's health ministry.

The death toll has sparked widespread anger in the Middle East and provided an impetus for attacks on American troops by forces opposed to their presence in the region.

There are roughly 2,500 American troops in Iraq and some 900 in Syria as part of efforts to prevent a resurgence of ISIS.

The extremist militant group once held significant territory in both countries but was pushed back by local ground forces supported by international air strikes in a bloody, multiyear conflict.

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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Updated: December 26, 2023, 3:09 PM