Follow the latest news on the earthquake in Turkey and Syria
A week after a 7.8-magnitude earthquake devastated large areas of Turkey and northern Syria, aid agencies and governments assisting the stricken region are becoming aware of the scale of the crisis.
They are also warning of secondary calamities, such as cholera outbreaks, among the millions of displaced.
On Sunday, UN humanitarian aid co-ordinator Martin Griffiths said rescue efforts would be winding down; experts warn that after five days, the chances of finding people alive under rubble drop to below 10 per cent.
"The rescue phase is dragging live people out from the rubble and finding those who died in the rubble. That's coming to a close," he said. "Now, the humanitarian phase, the urgency of providing shelter, psychosocial care, food, schooling and a sense of the future for these people, that's our obligation now."
The destruction now makes the earthquake the worst on record in Turkey, with tens of thousands of buildings destroyed over an area 500km in diameter, directly affecting 13.5 million people, or more than 15 per cent of the population. The Erzincan earthquake — the last comparable disaster in Turkey — claimed about 32,000 lives in 1939.
At least 150,000 emergency service workers are working on disaster rescue and aid efforts. In the longer term, the cost of rebuilding the affected area could be as high as $84 billion, according to the Turkish Enterprise and Business Confederation, which claims to represent 50,000 companies across the country.
Aside from the long-term cost, an initial estimate by the Bank of America indicates the earthquake has caused as much as $5 billion in damage to buildings, with at least $3bn needed for immediate humanitarian relief.
This is a conservative estimate, the bank warned, saying infrastructure repair and other costs such as supporting those recovering from the disaster will raise the total significantly.
On Sunday, Turkey’s Environment Minister Murat Kurum said more than 25,000 buildings were destroyed or damaged in Turkey, of 170,000 evaluated.
In Syria, more than five million people are thought to have been displaced.
That means that in less than an hour last Monday morning, nearly half the total displacement of the 12-year civil war occurred, including people who fled the country or were forced to move to other areas.
Before the quake, about six million people in Syria were internally displaced by conflict, most of them living in northern Syria, which was the hardest hit by last week’s disaster.
As many as 23 million people have been affected in both countries across an area of 120,000 square km.
Both face almost incalculable economic damage. Turkey is well placed to recover in the near-term compared to Syria, which has been in a state of near total economic collapse after 12 years of war.
But Ankara is already contending with high inflation and a growing deficit.
One million people in Turkey are now living in temporary accommodation, including tent cities hastily erected to shelter people in freezing temperatures, the Turkish government says.
To ease the crisis, the World Bank on Friday said $1.78 billion was being put aside to help Turkey, while it prepared “a rapid assessment of the urgent and massive needs”, president David Malpass said.
The bank said $780 million would be distributed immediately as part of a growing international aid package.
About 100 countries have made significant donations of aid or have sent specialist rescue teams.
Growing anger at UN
In Syria, the disaster has sparked growing debate on how aid is distributed after the UN acted slowly to increase the amount of assistance in northern Syria through Bab Al Hawa, the one crossing point authorised by the Security Council.
The Syrian government, supported by Russia and China at the UN, insists that all aid must be co-ordinated through Damascus because large parts of northern Syria along the border with Turkey are still controlled by rebel groups, including a coalition of militias backed by Turkey, and Al Qaeda-linked extremists. Aid agencies insist that humanitarian relief has been possible in northern Syria for years without assisting terrorist groups.
This has left UN officials increasing efforts to take the politics out of aid distribution in the north of the country.
Mr Griffiths said on Sunday that he would work hard to achieve a quick consensus on aid in northern Syria and acknowledged that the UN had so far “failed” to assist Syrians.
Some regional countries have joined an initial aid effort in northern Syria, including Egypt, Jordan and Qatar, while some UN aid has made it to hard-hit areas.
However, Syrian opposition groups say it is far from adequate and there have been small public protests in some areas to decry the slow UN response so far.
Meanwhile, a spokesman for the UN's humanitarian aid office told Reuters that “there are issues with [aid] approval” raised by Hayat Tahrir Al Sham, an Al Qaeda-linked umbrella group of opposition militants, which controls the north-western province of Idlib, home to at least one million displaced people.
The group allegedly said it did not want Damascus to benefit from aid distribution into Idlib from within Syrian territory.
The EU was also accused acting slowly to hasten the distribution of aid, but it strongly denied the claims on Sunday.
Dan Stoenescu, head of the EU delegation to Syria, said it was “unfair to be accused of not providing aid, when actually we have constantly been doing exactly that for over a decade and we are doing so much more even during the earthquake crisis”.
The first shipment of European earthquake aid to government-held parts of Syria arrived in Damascus on Sunday.
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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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Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
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MATCH INFO
Uefa Champions League, Group B
Barcelona v Inter Milan
Camp Nou, Barcelona
Wednesday, 11pm (UAE)
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)