A burnt-out vehicle in front of damaged buildings in Omdurman, central Sudan. AFP
A burnt-out vehicle in front of damaged buildings in Omdurman, central Sudan. AFP
A burnt-out vehicle in front of damaged buildings in Omdurman, central Sudan. AFP
A burnt-out vehicle in front of damaged buildings in Omdurman, central Sudan. AFP

No military solution to Sudan conflict, says US


Adla Massoud
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The US on Tuesday urged outside entities to stop fuelling and prolonging the Sudanese conflict by supplying weapons to the region.

Linda Thomas-Greenfield, the US ambassador to the UN, also asked the Security Council to give priority to Sudan and called for the resumption of ceasefire negotiations that include a return to civilian governance.

“There is no military solution to this senseless war … none whatsoever,” Ms Thomas-Greenfield told the 15-member Security Council.

The Sudanese Armed Forces and the Rapid Support Forces militia have been fighting since April 2023 in a conflict the UN says has already claimed about 150,000 lives.

The war has also pushed much of the country into food insecurity and acute hunger.

Fighting has been particularly severe in El Fasher, the capital city of North Darfur and the only capital in the Darfur region that is not under the RSF’s control.

UN rights chief Volker Turk told the UN Human Rights Council in Geneva on Tuesday that Sudan “is being destroyed in front of our eyes by two warring parties and affiliated groups … [who have] flagrantly cast aside the rights of their own people”.

Mr Turk called for both sides to be held accountable for committing war crimes.

On June 14, the Security Council adopted a UK-drafted resolution demanding an end to the siege of El Fasher.

The measure, which won 14 votes in favour and an abstention from Russia, expresses “grave concern” over the spreading violence and reports that the RSF is carrying out “ethnically motivated violence”.

During Tuesday's Security Council meeting, the Sudanese ambassador to the UN, Ammar Al Harith Idriss, repeated allegations that the UAE is supporting the RSF.

The UAE's ambassador to the UN, Mohamed Abushahab, said the “ludicrous allegations” came from the representative of Sudan “who represents the Sudanese armed forces, one of the warring parties in Sudan”.

“We believe that the Sudanese people deserve justice and peace. They need a ceasefire, a credible political process and unhindered flow of humanitarian aid,” Mr Abushahab said.

The ambassador expressed the UAE’s deep concern over the consequences of the intensifying conflict on the “brotherly Sudanese people.”

“Excuses and finger pointing only prolongs the suffering of civilians,” Mr Abushahab said in response to the accusations made by Sudan’s representative.

Since the onset of the conflict, about 9.2 million people have been displaced and 1.9 million people have sought refuge in Sudan’s neighbouring countries – the Central African Republic, Chad, Egypt, Ethiopia and South Sudan.

The hostilities have persisted across several front lines, including in and around Khartoum, Al Jazirah, Kordofan, and White Nile.

According to the UN, more than two million people in 41 hotspots are at high risk of slipping into catastrophic hunger in the coming weeks and 7,000 new mothers could die in the next few months if they do not receive access to food and health care.

Growing needs are becoming increasingly difficult to meet due to shrinking funding.

“As of the end of May 2024, the gap between humanitarian funding requirements and available resources stands at $40.8 billion,” Mr Turk said.

“Appeals are funded at an average of 16.1 per cent only.”

The UAE on Monday increased its contributions to humanitarian efforts in Sudan by directing $70 million in aid for UN agencies. This is in addition to the $130 million in aid sent over the past 10 months.

“With millions of Sudanese people facing a looming famine, it is unconscionable that the Sudanese Armed Forces continue to obstruct and deny basic humanitarian assistance, in violation of international humanitarian law,” Mr Abushahab said.

The ambassador also stressed the need for a ceasefire and for a credible political process, while allowing an uninterrupted flow of humanitarian aid to the country.

Mr Abushab also called on the Sudanese representative to take part in the Jeddah talks – aimed at bringing an end to the conflict.

The US last week provided another $315 million for the humanitarian response in Sudan and neighbouring countries.

“We are in the race against time to avert massive loss of life. And in this unprecedented protection and food security crisis in Sudan,” warned Edem Wosornu, director at the UN's Office for the Co-ordination of Humanitarian Affairs.

“Every day that we wait for funding to come, more lives are at risk.”

War in Sudan one year on – in pictures

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: June 19, 2024, 6:32 AM