Kinda Al Khatib belives she was set up because of her vocal condemnation of Hezbollah. The National
Kinda Al Khatib belives she was set up because of her vocal condemnation of Hezbollah. The National
Kinda Al Khatib belives she was set up because of her vocal condemnation of Hezbollah. The National
Kinda Al Khatib belives she was set up because of her vocal condemnation of Hezbollah. The National

Kinda Al Khatib: The ‘spy’ and Hezbollah critic Lebanon would rather forget


Sunniva Rose
  • English
  • Arabic

The raid began at dawn. Dozens of armed men in black hoods stormed Kinda Al Khatib’s family home, arresting her and her brother, and starting a year-long ordeal for the 25-year-old Hezbollah critic.

“I couldn’t see their faces. They had guns, as if they were coming to take a terrorist,” she told The National.

General Security, one of Lebanon’s most powerful security bodies, released her brother Bandar, 31, a day after the raid, on June 18 last year. But Kinda remained in custody.

Six months later, she was brought before the Military Court and sentenced to three years in prison for entering Israel and communicating with Israeli spies.

These are serious accusations in Lebanon, which is still technically at war with its neighbour to the south.

Little over a year after that morning raid, Kinda’s life is on hold as she battles to clear her name.

Released in March after launching an appeal, she insists she is innocent and was set up because of her vocal condemnation of Hezbollah.

Meanwhile, her opponents accuse her of stoking sectarian tension with inflammatory attacks against the Iran-backed Lebanese political party and paramilitary group, which the US has designated a terrorist organisation. She says this is an excuse to repress freedom of speech.

Kinda’s retrial, initially planned for April 8, is now scheduled to begin on December 23. Sources at the Lebanese judiciary are divided over the significance of repeated delays to her hearings, caused by one judge’s retirement, a lawyers’ strike and national holidays.

Some insiders consider these postponements coincidental. But others believe they are a sign of the reluctance to tackle the highly sensitive – and quite possibly unsubstantiated – accusations levelled at the young activist.

One judicial source said, simply: “Nobody wants to deal with this file any more.”

A former US State Department official described the case as a “witch-hunt” that could undermine Lebanon’s relationship with Washington at a tumultuous time for the small Mediterranean country.

Kinda is now back at home in Akkar, an impoverished, rural region in Lebanon’s north. She keeps a low profile – only months ago, the activist and commentator Lokman Slim, one of Hezbollah’s most articulate detractors, was assassinated.

But, forced to abandon her university studies and living in constant fear for her safety, Kinda says the damage has been done.

Kinda at work in her role with the EU. Courtesy Kinda Al Khatib
Kinda at work in her role with the EU. Courtesy Kinda Al Khatib

Social media and sectarianism

Military Court trials of those accused of spying for Israeli are not uncommon. A Lebanese man was sentenced to seven years with hard labour in March for providing intelligence to Israel and “spreading Zionist ideology through social media”.

Yet few cases have attracted as much attention as Kinda’s, particularly from pro-Hezbollah news outlets. A Military Court source explained this was due to her influence on Twitter, on which she has more than 30,000 followers, and most importantly because of the sectarian element of the case.

“This is a Sunnite-Shiite affair,” they said, referring to the two biggest Muslim sects in Lebanon, which are represented by rival political parties.

Kinda’s Twitter feed reads like a stream of accusations against Hezbollah, which gained significant popular support in Lebanon for its guerrilla war that ended Israeli occupation in 2000. Hostility to the group is relatively common in Sunni-dominated Akkar. The locals there were active in the nationwide anti-government protests in late 2019 triggered by the country’s worst economic crisis. Hezbollah closed ranks with the country’s dominant political parties to discredit and attack demonstrators.

Kinda’s critics allege she has ties to Lebanon’s largest Sunni Muslim political party, the Future Movement, which is influential in Akkar. But both she and party representatives The National spoke to said this was untrue, though she did tweet her support for the late founder of the party, Rafik Hariri, and his son, the former prime minister designate Saad Hariri.

Months before her arrest, Hezbollah supporters tried to silence Kinda by filing a complaint against her for “disturbing public peace”. She said the police made her sign a pledge promising to stop criticising the party and President Michel Aoun. But she continued. Lawyers say these pledges have no legal standing.

Kinda believes she is on trial because she did not heed these warnings.

Concerns in Washington

Kinda’s case has also drawn interest outside Lebanon at a time of almost unprecedented political and economic uncertainty in the country. Nizar Zakka, a Lebanese citizen and permanent US resident who was detained for close to four years in Iran on spying charges that he denies, actively lobbied for her release.

“Each time I checked on her case it got worse and worse. A lot of people told me to stay away from it,” he said. “But nothing against her was true. We triple-checked everything.”

Mr Zakka, a respected figure in Lebanon who met Mr Aoun shortly after his release by Iran in 2019, believes Kinda’s prosecution is an attempt to muzzle her. He said it echoes past attempts to silence critics of powerful Lebanese political parties or figures.

“What happened to Kinda is a trend. If we don’t speak up this time it will affect every single Lebanese in the near future,” he told The National.

Officials in Washington are also following the case closely. David Schenker, the former US assistant secretary of state for near eastern affairs, shared Mr Zakka’s views. “Kinda Al Khatib’s case is a witch-hunt driven by Hezbollah and its ilk,” he said. “The flimsy evidence brought against Ms Al Khatib is likely to delay even further the already lengthy judicial process.”

Nizar Zakka was released from Iran's notorious Evin prison in 2019. EPA
Nizar Zakka was released from Iran's notorious Evin prison in 2019. EPA

The court case against her is an “absurd use of resources,” he said. He pointing out that decades-old investigations into political assassinations, including Slim’s, as well as the stalled probe into the devastating port explosion last August, have yet to yield results.

But sources at the Military Court denied singling out Kinda for her anti-Hezbollah views. They shied away from describing her outright as a spy, emphasising instead her contact with numerous high-profile Israelis, for which they say she should be punished in accordance with Lebanese law. “If we hadn’t caught her in time, she would have become a Mossad agent,” said one.

The Military Court is presided over by a serving military general and hears cases of terrorism, espionage and some matters of national security. As with other top posts in Lebanon’s sectarian system, the court’s heads represent different communities. Its president is Shiite Muslim, and the head of the court of cassation – a civilian judge – is Maronite Christian.

Lebanon’s judicial system is intertwined with its politics, and the Military Court is no exception. The defence minister, not a judicial body nor the army head, chooses its president, currently General Mounir Shehadeh.

Human Rights Watch has repeatedly criticised the Military Court for trying civilians.

Charges and contradictions

It was Gen Shehadeh who last December sentenced Kinda to three years in prison for entering Israel and sharing intelligence with Israeli spies. Kinda reacted with defiance.

“The judge asked me: ‘What do you want?’ I told him: ‘I just want to ask you to protect young people of my generation from being arrested for political reasons,’” she said.

The indictment’s account of her alleged visit to Israel – a crime in Lebanon – seems to rely heavily on assumptions based on her social media activity.

It was read aloud at the Military Cassation Court in the presence of journalists at the start of what should have been her first hearing in April, minutes before it was postponed.

Kinda, it says, privately told politically affiliated Lebanese personalities that she had entered Israel during a six-day holiday to Jordan in January 2020 and posted a video of Jerusalem’s Al Aqsa Mosque on Instagram.

Kinda was accused of entering Israel – a serious crime in Lebanon. AFP
Kinda was accused of entering Israel – a serious crime in Lebanon. AFP

But Kinda told a military investigative judge that the video was shot by a friend living in Israel and her lawyer provided the Military Court with a statement from the Jordanian authorities showing that she had never crossed from Jordan to Israel.

“During the preliminary investigation, Kinda says that she did not enter the enemy’s territory and that she got the video from her Pakistani-British friend called Adnan, and that she claimed she had visited Jerusalem to show off but she couldn’t justify how she knew that Crossing 15 existed,” the indictment read.

A Military Court source described “Crossing 15” as a border crossing that allows travellers to enter Israel from Jordan without a stamp on their passport. The National was unable to verify the existence of the crossing.

The indictment also states that in April 2019, Israeli journalist Roi Kais contacted Kinda by Twitter. She conceded that this had happened, saying they messaged back and forth about the economic crisis and political situation in Lebanon.

But she refutes accusations that he asked her to arrange interviews with Saudi Crown Prince Mohammed bin Salman and denies they both expressed hope for peace between Israel and Lebanon.

Victim or manipulator?

While the court source said the alleged travel to Israel and contact with the Israeli journalist were the foundation of her conviction, several other accusations were levelled against her in the indictment.

These include communicating by Twitter with an Israeli woman called Juliet, who the Military Court source said was a Mossad agent without offering any proof.

Despite the indictment stating Mr Kais wrote to Kinda first, they believe she initiated contact and then deleted her messages, a claim she rejects.

A 1955 Israel boycott law states that anyone living in Lebanon who engages in “any transaction, whatever its nature” with any person living in Israel is subject to three to 10 years in prison.

This wording allows for a wide interpretation, said lawyers familiar with the boycott law. It puts any Lebanese person who comes in contact with an Israeli, whether via social media or in person outside Lebanon, at risk of prosecution.

People become spies for different reasons: for money, because they are forced to, because they want to, or for power. She falls in the latter category. She has no ideology
Military Court source

Kinda claimed that she only realised Mr Kais was Israeli the day after he first sent her a message, despite his Twitter handle mentioning that he works for Israeli media.

“I had almost 28,000 followers, I didn’t check every single one of them,” she said.

She said that she reported the exchange to the Lebanese Internal Security Forces and was given no instructions on what to do. But the Military Court source said they asked Internal Security Forces head Imad Osman about the report and he informed them she was told the same as other similar cases: that she should cut contact.

The Military Court source accused Kinda of manipulating local police by reporting to them as a cover to continue talking to the Israeli journalist. Far from a hapless victim or the target of a political smear, the source described Kinda as smart and cunning. “She is an intelligent girl who tells a lot of lies,” they said. “She is sick.”

“People become spies for different reasons: for money, because they are forced to, because they want to or for power. She falls in the latter category. She has no ideology,” they said.

Kinda denies manipulating the local authorities. She recognised that she continued talking to Mr Kais sporadically, “from month to month”, after reporting their initial conversation to the police. But she claimed that she thought that the police were aware of this and that she had nothing to hide because she had previously given them her Twitter account details.

“Everything was under the eye of the police,” she said.

The court did not ask the policeman who received Kinda’s calls to testify.

The Kuwaiti connection

Kinda’s indictment goes beyond accusations of contact with Israelis. It alleges she was in touch with high-level figures from countries and international bodies with a strong presence in Lebanon, including the EU, Saudi Arabia and Kuwait.

The Military Court source described these connections as “suspicious in itself”.

“What is your role, little Lebanese girl, to be able to suggest interviews with Mohammad Bin Salman?” the source asked rhetorically.

“It was clear that the defendant Kinda shared security information about Lebanon to foreign countries, including the EU and Kuwait. She is accused of being a spy,” the indictment read.

But Kinda said her connection to the EU was simply as an interpreter and assistant during the 2018 elections monitoring mission. She denies having spied.

Kinda Al Khatib's sister Mariam Al Khatib (second from left) and brother Bandar (right) during a protest outside the Military Court in Beirut shortly after her arrest in June 2020. Sunniva Rose for The National
Kinda Al Khatib's sister Mariam Al Khatib (second from left) and brother Bandar (right) during a protest outside the Military Court in Beirut shortly after her arrest in June 2020. Sunniva Rose for The National

The National contacted the EU, a major donor to Lebanese institutions. A representative for the bloc’s delegation in Beirut declined to comment on the indictment, but refuted the claim that it was gathering intelligence in Lebanon.

The indictment also said Kinda had provided sensitive information to a Kuwaiti intelligence officer with whom she spent four hours in a hotel by the Dead Sea during a holiday in Jordan.

The officer is described as having links with Ahmad Al Assir, a notorious Lebanese cleric sentenced to death in 2017 for leading deadly clashes against the army in the southern city of Sidon.

The Military Court source claimed Kinda had become romantically involved with the officer, who used her to access sensitive information.

Kinda denies meeting the Kuwaiti officer, an assertion supported by her brother Bandar – a former soldier who was wounded in the 2013 Sidon clashes and who was with her in Jordan.

She said that the alleged affair was an attempt to smear her in the socially and religiously conservative region of Akkar. “They are trying to ruin my reputation as a woman. This affects us a lot in our society,” she said.

Kinda’s family is standing by her, with her brother Sultan often showing his support in posts on social media.

Beirut and Washington

One judicial source played down the accusations of spying for Kuwait and the EU, pointing out that neither are Lebanon’s enemies. The source also cast doubt on her alleged visit to Israel, but nonetheless described her as reckless and a “show off”. “She speaks too much, and that caused her downfall,” they said.

They said they were surprised by the level of interest shown in Kinda’s case in the US. The head of the Lebanese army, which relies heavily on American support, has little say in how the Military Court is run. The court reports directly to the Defence Ministry.

But Mr Schenker, the former state department official, said the fallout from Kinda’s retrial could have far-reaching consequences for Lebanese-US relations. “Should this case progress, it may cause some in Congress to question Washington’s continued extremely generous support to Lebanon,” he said.

The US is the single largest international donor to the Lebanese army.

US diplomats are preparing a humanitarian aid package for Lebanon as the country’s economic crisis deepens. In late May, the US announced it would increase in-kind aid purchased and delivered directly to the army, including parts, systems and training, by 12 per cent, to $120 million.

Lebanese President Michel Aoun, right, meets with David Schenker, Assistant Secretary of State for Near Eastern Affairs, at the presidential palace, in Baabda east of Beirut, September 10, 2019. AP
Lebanese President Michel Aoun, right, meets with David Schenker, Assistant Secretary of State for Near Eastern Affairs, at the presidential palace, in Baabda east of Beirut, September 10, 2019. AP

The army has never been good at making a distinction between themselves and Lebanon’s military justice system, said Aram Nerguizian, senior associate, Burke Chair in strategy at the Centre for Strategic and International Studies.

At best, Kinda’s case can be a nuisance, he said. At worst, it can become one more problem the Lebanese army will have to firefight to preserve and sustain US military assistance.

“The army does not have direct control over the courts, but if this story and others like it put pressure on US assistance at the congressional level, then the courts’ problems become the army’s problems regardless,” said Mr Nerguizian.

Mr Nerguizian noted that Lebanese political parties are known for attempting to undermine the army to stop it encroaching on their autonomy and clientelist networks.

“Political factions like Hezbollah are more than happy to use the courts through their sectarian clients, and if this casts a negative light on the army, all the better for it,” he told The National.

Lebanon’s last three defence ministers – Zeina Akar, Elias Bou Saab, and Yacoub Sarraf – were nominated by President Michel Aoun’s political party, the Free Patriotic Movement, which is a Hezbollah ally.

A Hezbollah flag flies over the Lebanese side of the border fence with Israel. AFP
A Hezbollah flag flies over the Lebanese side of the border fence with Israel. AFP

Fear for her life

Far removed from diplomatic concerns, Kinda’s court case has already had a significant impact on her day-to-day life. Since her release on bail, she fears being killed and rarely leaves Akkar. “They spread a lot of tweets saying ‘You should kill her, she’s a spy’,” she said, referring to posts by pro-Hezbollah social media accounts.

Before her arrest, Kinda had been writing her master’s degree thesis in English literature at the Lebanese University, focusing on the novel The Shell by Syrian writer Mustafa Khalifa, who was imprisoned in Syria’s infamous Tadmor prison.

She missed the August 2020 deadline to submit her work because she remained in detention. “I wanted to be a doctor in English literature, but now I’m more interested in defending the rights of the Lebanese,” she said.

Kinda has not gone back to university in the capital for safety reasons and cannot enrol elsewhere without her national ID, which she will reclaim if she is found innocent or has served her sentence.

She said the thought of returning to prison, where she was the youngest detainee in a room with six other women being held on drugs charges, terrifies her.

During the nine months she spent in an all-female high-security prison in Beirut, she said she was allowed to make only four calls to her family. “I tried my best to adapt, even though I was broken inside. I lost six kilos in the first seven days from stress,” she said.

As she waits, she has written and rewritten versions of the first tweet she will send when she feels ready to return to social media. She shared one version in Arabic with The National: “Who is going to return back the nine months that are gone from my life? Who is going to return my health to me? Definitely no one. But if they knew how prison made me stronger, they wouldn’t have put me there. They are cowards. Because one person can shake their whole party.”

Tamkeen's offering
  • Option 1: 70% in year 1, 50% in year 2, 30% in year 3
  • Option 2: 50% across three years
  • Option 3: 30% across five years 
How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
The President's Cake

Director: Hasan Hadi

Starring: Baneen Ahmad Nayyef, Waheed Thabet Khreibat, Sajad Mohamad Qasem 

Rating: 4/5

The biog

Occupation: Key marker and auto electrician

Hometown: Ghazala, Syria

Date of arrival in Abu Dhabi: May 15, 1978

Family: 11 siblings, a wife, three sons and one daughter

Favourite place in UAE: Abu Dhabi

Favourite hobby: I like to do a mix of things, like listening to poetry for example.

Favourite Syrian artist: Sabah Fakhri, a tenor from Aleppo

Favourite food: fresh fish

THE%20SPECS
%3Cp%3EEngine%3A%203-litre%20V6%20turbo%20(standard%20model%2C%20E-hybrid)%3B%204-litre%20V8%20biturbo%20(S)%0D%3Cbr%3EPower%3A%20350hp%20(standard)%3B%20463hp%20(E-hybrid)%3B%20467hp%20(S)%0D%3Cbr%3ETorque%3A%20500Nm%20(standard)%3B%20650Nm%20(E-hybrid)%3B%20600Nm%20(S)%0D%0D%3Cbr%3EPrice%3A%20From%20Dh368%2C500%0D%3Cbr%3EOn%20sale%3A%20Now%3C%2Fp%3E%0A
A timeline of the Historical Dictionary of the Arabic Language
  • 2018: Formal work begins
  • November 2021: First 17 volumes launched 
  • November 2022: Additional 19 volumes released
  • October 2023: Another 31 volumes released
  • November 2024: All 127 volumes completed
Expert advice

“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”

Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles

“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”

Cornelia Gloor, head of RAK Hospital’s Rehabilitation and Physiotherapy Centre 

“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”

Chandrashekar Nandi, physiotherapist at Burjeel Hospital in Dubai
 

Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

Graduated from the American University of Sharjah

She is the eldest of three brothers and two sisters

Has helped solve 15 cases of electric shocks

Enjoys travelling, reading and horse riding

 

Children who witnessed blood bath want to help others

Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.

As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.

Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.

“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”

Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.

“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”

Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

((Disclaimer))

The Liechtensteinische Landesbank AG (“Bank”) assumes no liability or guarantee for the accuracy, balance, or completeness of the information in this publication. The content may change at any time due to given circumstances, and the Liechtensteinische Landesbank AG is under no obligation to update information once it has been published. This publication is intended for information purposes only and does not constitute an offer, a recommendation or an invitation by, or on behalf of, Liechtensteinische Landesbank (DIFC Branch), Liechtensteinische Landesbank AG, or any of its group affiliates to make any investments or obtain services. This publication has not been reviewed, disapproved or approved by the United Arab Emirates (“UAE”) Central Bank, Dubai Financial Services Authority (“DFSA”) or any other relevant licensing authorities in the UAE. It may not be relied upon by or distributed to retail clients. Liechtensteinische Landesbank (DIFC Branch) is regulated by the DFSA and this advertorial is intended for Professional Clients (as defined by the DFSA) who have sufficient financial experience and understanding of financial markets, products or transactions and any associated risks.

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

HERO%20CUP%20TEAMS
%3Cp%3E%3Cstrong%3E%3Cins%3EContinental%20Europe%3Cbr%3E%3C%2Fins%3E%3C%2Fstrong%3EFrancesco%20Molinari%20(c)%3Cbr%3EThomas%20Detry%3Cbr%3ERasmus%20Hojgaard%3Cbr%3EAdrian%20Meronk%3Cbr%3EGuido%20Migliozzi%3Cbr%3EAlex%20Noren%3Cbr%3EVictor%20Perez%3Cbr%3EThomas%20Pieters%3Cbr%3ESepp%20Straka%3Cbr%3EPlayer%20TBC%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3E%3Cins%3EGreat%20Britain%20%26amp%3B%20Ireland%3C%2Fins%3E%3C%2Fstrong%3E%3Cbr%3ETommy%20Fleetwood%20(c)%3Cbr%3EEwen%20Ferguson%3Cbr%3ETyrrell%20Hatton%3Cbr%3EShane%20Lowry%3Cbr%3ERobert%20MacIntyre%3Cbr%3ESeamus%20Power%3Cbr%3ECallum%20Shinkwin%3Cbr%3EJordan%20Smith%3Cbr%3EMatt%20Wallace%3Cbr%3EPlayer%20TBC%3C%2Fp%3E%0A
THE LOWDOWN

Photograph

Rating: 4/5

Produced by: Poetic License Motion Pictures; RSVP Movies

Director: Ritesh Batra

Cast: Nawazuddin Siddiqui, Sanya Malhotra, Farrukh Jaffar, Deepak Chauhan, Vijay Raaz

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.”

Company%20profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%3C%2Fstrong%3E%20Fasset%0D%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2019%0D%3Cbr%3E%3Cstrong%3EFounders%3A%3C%2Fstrong%3E%20Mohammad%20Raafi%20Hossain%2C%20Daniel%20Ahmed%0D%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Dubai%0D%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3EFinTech%0D%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%3C%2Fstrong%3E%20%242.45%20million%0D%3Cbr%3E%3Cstrong%3ECurrent%20number%20of%20staff%3A%3C%2Fstrong%3E%2086%0D%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%3C%2Fstrong%3E%20Pre-series%20B%0D%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Investcorp%2C%20Liberty%20City%20Ventures%2C%20Fatima%20Gobi%20Ventures%2C%20Primal%20Capital%2C%20Wealthwell%20Ventures%2C%20FHS%20Capital%2C%20VN2%20Capital%2C%20local%20family%20offices%3C%2Fp%3E%0A
Selected fixtures

All times UAE

Wednesday
Poland v Portugal 10.45pm
Russia v Sweden 10.45pm

Friday
Belgium v Switzerland 10.45pm
Croatia v England 10.45pm

Saturday
Netherlands v Germany 10.45pm
Rep of Ireland v Denmark 10.45pm

Sunday
Poland v Italy 10.45pm

Monday
Spain v England 10.45pm

Tuesday
France v Germany 10.45pm
Rep of Ireland v Wales 10.45pm

'Panga'

Directed by Ashwiny Iyer Tiwari

Starring Kangana Ranaut, Richa Chadha, Jassie Gill, Yagya Bhasin, Neena Gupta

Rating: 3.5/5

A%20Little%20to%20the%20Left
%3Cp%3E%3Cstrong%3EDeveloper%3A%20%3C%2Fstrong%3EMax%20Inferno%3Cbr%3E%3Cstrong%3EConsoles%3A%3C%2Fstrong%3E%20PC%2C%20Mac%2C%20Nintendo%20Switch%3Cbr%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%26nbsp%3B%3C%2Fp%3E%0A
Updated: August 20, 2021, 12:56 PM