Hezbollah flags flutter on an empty street in south Lebanon. Reuters
Hezbollah flags flutter on an empty street in south Lebanon. Reuters
Hezbollah flags flutter on an empty street in south Lebanon. Reuters
Hezbollah flags flutter on an empty street in south Lebanon. Reuters

Lebanon's Nabatiyeh rocked by overnight explosion


Ismaeel Naar
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An explosion in south Lebanon early on Thursday was caused by a fire that spread to a cache of old munitions, authorities said.

The night-time blast between the south of Lebanon towns of Houmine Al Fawqa and Roumin in the Nabatiyeh district did not cause any casualties.

Videos shared on social media showed flames and smoke over the site of the blast.

The state-run National News Agency said that an electricity generator caught fire and spread to a fuel tank of a house on the Izza River in Wadi Houmeen.

With the state offering very little electricity because of the country's economic crisis, communities and houses are running private generators around the clock — when fuel is not scarce. This has led to several generator fires and accidents in recent months.

The NNA said the fire then blew up cluster munitions and other unexploded ordnance left over from the 2006 Israel-Hezbollah war.

In the final days of the month-long conflict, Israel dropped more than 4 million cluster munitions on south Lebanon, many of which did not explode. Mine clearance groups continue to operate in the area, clearing dangerous ordnance. Injuries and casualties from old mines and cluster bombs are not uncommon even more than 15 years after the war ended.

In 2020 alone, UN peacekeepers cleared 14,541 square metres of land and discovered and destroyed 1,348 anti-personnel mines.

Since 2006, Unifil deminers have cleared nearly 5 million square metres of land in south Lebanon and destroyed more than 43,500 mines, bombs and unexploded ordinances.

The damage from Thursday's blast appeared to be limited to the building where the explosion took place, with some windows of neighbouring houses shattering, witnesses told Turkey's Anadolu Agency.

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: January 13, 2022, 1:41 PM