Syrian district of Daraa al-Balad deserted following fighting between government forces and armed opposition groups in Syria's southern province of Daraa. AFP
Syrian district of Daraa al-Balad deserted following fighting between government forces and armed opposition groups in Syria's southern province of Daraa. AFP
Syrian district of Daraa al-Balad deserted following fighting between government forces and armed opposition groups in Syria's southern province of Daraa. AFP
Syrian district of Daraa al-Balad deserted following fighting between government forces and armed opposition groups in Syria's southern province of Daraa. AFP

Renewed shelling in Daraa, Syria, after Russian-brokered truce


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Syrian government forces began an artillery bombardment in Syria's southern province of Daraa on Wednesday, a day after a Russian-brokered truce between rebel fighters and President Bashar Al Assad's government took effect.

The previous day, opposition fighters and civilians began leaving Daraa under the agreement, with the first batch reaching the suburbs of Aleppo in a bus carrying eight people, the UK-based Syrian Observatory for Human Rights said.

The departures were part of a ceasefire deal that also calls on opposition fighters who stay in the province to hand over their weapons, said the observatory.

Mr Al Assad's forces brought in reinforcements – tanks and other military vehicles – to Daraa's western region, the observatory reported. Its report said at least one civilian was shot by regime forces.

At least 38,000 people have been displaced from Deraa in the past month, the UN said on Tuesday.

"This includes almost 15,000 women, over 3,200 men and elderly and over 20,400 children," the UN Office for the Co-ordination of Humanitarian Affairs said.

Deraa was retaken by the government in 2018 but emerged as a new flashpoint as troops tightened control over Daraa Al Balad, a southern district of the provincial capital considered a hub for former rebels.

Clashes including artillery exchanges between the two sides since late July are the biggest challenge yet to the deal that returned Deraa province to government control but allowed rebels to stay in some areas.

Russian-sponsored talks that began after the latest fighting intensified in recent days as the government stepped up its campaign to root out those rebels still in Daraa Al Balad.

Forces linked to the Syrian regime are expected to take up posts in Daraa Al Balad under the agreement, it said.

The pro-government Al Watan newspaper also reported the start of departures, saying that "implementation of the truce agreement has begun".

The UN Office for the Co-ordination of Humanitarian Affairs gave a warning about the critical situation in the volatile district, saying that access to goods and services, including food and power, was "extremely challenging".

The observatory said government forces were restricting the entry of goods into Daraa Al Balad, where it estimates 40,000 people still live.

"They are living under siege with families facing shortages of food, medical services, potable water, power and internet," said the monitor, which relies on a network of sources inside Syria.

UN Special Envoy for Syria Geir Pedersen on Tuesday alerted the Security Council to the pressing need for humanitarian assistance.

"We repeat our calls on all parties to end the violence immediately," he said. "Immediate, safe and unimpeded humanitarian access is needed to all affected areas and communities, including Daraa Al Balad."

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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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Updated: September 08, 2021, 5:58 AM