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Israeli warplanes conducted air strikes on the Lebanese city of Baalbek on Sunday, another escalation deep within the country amid continuing clashes between Israeli forces and Lebanese militia Hezbollah.
In response to the attack, the group said it fired 60 rockets towards Israeli military bases over the border, including the Yoav and Kaila barracks.
In Baalbek, the Israeli strike wounded three people according to the town's mayor, Bachir Khodr, who posted the news on X. It was not immediately clear what was struck, but Israel claimed to have hit a Hezbollah-operated manufacturing site.
Hours before the bombing, Hezbollah said it had launched two drones into Kfar Blum, northern Israel. The group said the unmanned aircraft were targeting one of Israel’s Iron Dome rocket defence systems, which have been used extensively to counter Hezbollah rockets in recent weeks.
Israel said that Hezbollah launched 50 rockets in response to the air strike, and that most had fallen in open areas. The Iron Dome system often calculates where rockets will fall, to save firing expensive interceptor missiles.
Hours later, Lebanese media said a blast had destroyed a vehicle in Souairi, in the Bekaa Governorate in the country's east, with images on social media showing the burning remains of a vehicle after the suspected air strike.
The strike on Baalbek, 100km from the border, shows the growing spread of the conflict amid concerns that it could turn into full-scale war.
A pair of Israeli air strikes March 12 near the city killed at least two people and wounded 20. Hezbollah says it launched operations against Israel on October 8 over Israel’s war with Hamas militants in Gaza. The two groups have long been supported by Iran.
Since the Gaza war began on October 7, Hezbollah has been carrying out attacks on Israel’s military posts along the border, sometimes firing rockets and at other times, using anti-tank guided missiles.
Israel has staged hundreds of air strikes, mostly along the border, as well as firing artillery and toxic White Phosphorus, which burns at extremely high temperatures and can contaminate land. Since late February the Baalbek area has been attacked at least three times.
A full-scale war between the two – something Western diplomats have been trying to avoid with visits to the region – could see thousands of Hezbollah rocket attacks and Israeli air strikes occurring within days.
The group is thought to have an arsenal of rockets and missiles consisting of more than 100,000 weapons.
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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Based: UAE
Sector: Travel & tourism
Size: 36 employees
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Favourite TV show: That 70s Show
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Name of first pet: Eddy, a Persian cat that showed up at our home
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