German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP
German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP
German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP
German frigate Hessen fired at drones during a two-month operation in Red Sea waters under attack by the Houthi rebels in Yemen. AFP

Germany extending military missions from Red Sea to southern Mediterranean


Tim Stickings
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Germany plans to renew four military missions in the Middle East, Africa and the Mediterranean before parliament is dissolved for a February general election.

Votes will take place in late January on extending operations involving 1,600 German troops in the Red Sea, in waters off Libya and Tunisia, in the wider Mediterranean and in South Sudan. Their deployment in UN, EU and Nato-led missions is set to expire between February and April – when Germany may be in political limbo during post-election coalition talks.

Shipping had declined by 73 per cent in the Bab Al Mandab strait as mariners take a detour from the Red Sea
German report

Chancellor Olaf Scholz's government says the missions should continue at a cost of €30.6 million ($31.5 million) to secure key sea routes against smuggling, Houthi attacks and the “spillover” of violence from the Middle East. It also hopes to show Donald Trump's coming US administration that Europe is willing to do its fair share for security.

Although the missions have broad support among Germany's traditional parties, they are viewed more sceptically by left and right-wing forces tipped to gain in the election. The Alliance Sahra Wagenknecht, a left-populist party that could be involved in coalition talks, opposed the Red Sea mission, saying the government was “blindly following” the US.

A mural in Yemen shows a Houthi fighter stopping an Israeli ship as part of the militants' campaign in the Red Sea. EPA
A mural in Yemen shows a Houthi fighter stopping an Israeli ship as part of the militants' campaign in the Red Sea. EPA

Mr Scholz's government said in papers handed to parliament that US-UK air strikes in Yemen had only a “short-term” impact on Houthi militants' ability to attack Red Sea shipping. It quoted an EU situation report as saying shipping had declined by 73 per cent in the Bab Al Mandeb strait as mariners take the longer route around Africa's southern tip.

The German frigate Hessen fired shots at two drones, from a 76-millimetre gun and missile launcher, in one security scare last February. In addition “the danger is rising of deliberate or collateral damage to critical infrastructure in the area of operations”, such as undersea data cables connecting Europe and Asia, the German government said.

The European mission known as Operation Aspides “shows that the EU is willing and able to take responsibility in the region”, it said. “This also sends a positive signal to our transatlantic allies regarding the sharing of duties in securing freedom of navigation in the area of operations”.

The German parliament's authorisation for up to 700 troops to deploy to the Red Sea runs out on February 25, two days after the general election. Ministers are seeking an extension until October. They want to keep up to 300 troops available for a second EU mission known as Operation Irini which monitors Libya's coast for weapons smugglers.

Mediterranean tasks

The Mediterranean mission is intended to help stabilise Libya but Germany said an arms embargo continues to be breached, despite more than 600 ships being boarded under Operation Irini. Nonetheless it said the naval presence was the “only instrument with which the UN weapons embargo against Libya is enforced on the high seas”.

Ministers say German sailors are also providing intelligence to the EU on people smuggling networks in the Mediterranean. Although Operation Irini is not primarily a search and rescue mission, Germany says it is obliged to provide assistance to people in distress at sea.

The EU's Operation Irini is mainly directed at Libyan arms smugglers but also has goals to gain intelligence on Mediterranean migration. Reuters
The EU's Operation Irini is mainly directed at Libyan arms smugglers but also has goals to gain intelligence on Mediterranean migration. Reuters

The far-right Alternative for Germany (AfD) has called for Operation Irini to be stopped, saying it had brought “no successes” in the fight against illegal migration. Concerns it was having a “pull effect” on migrants led to an emergency brake being introduced at EU level but Germany sees “no indications” that it should be triggered.

A further Mediterranean mission, a Nato operation known as Sea Guardian, has a broader goal of counter-terrorism and surveillance in Europe's southern waters. Germany says its participation with 550 troops should continue although no ships were inspected against their will during 2024.

“International terrorism has emerged as an increased threat in the maritime domain, including in the context of the escalation in the Middle East”, the government said. “This especially means international arms smuggling. It remains necessary to prevent a spillover effect into Europe and Nato territory from the activities of terrorist groups”.

The fourth German mission is a 50-troop presence in South Sudan as part of a UN peacekeeping operation, which Mr Scholz's government called the “most important anchor of stability” in the fragile country. Elections due to take place last month were postponed as a transitional period was extended until 2027.

Germany's election was brought forward from September to February after Mr Scholz's three-party coalition collapsed, leaving him without a majority in parliament. Support from centre-right parties should mean the military operations are extended but the election is expected to shake up the party landscape.

Company%20profile
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Company Profile

Company name: Fine Diner

Started: March, 2020

Co-founders: Sami Elayan, Saed Elayan and Zaid Azzouka

Based: Dubai

Industry: Technology and food delivery

Initial investment: Dh75,000

Investor: Dtec Startupbootcamp

Future plan: Looking to raise $400,000

Total sales: Over 1,000 deliveries in three months

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.”

Nayanthara: Beyond The Fairy Tale

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Results

57kg quarter-finals

Zakaria Eljamari (UAE) beat Hamed Al Matari (YEM) by points 3-0.

60kg quarter-finals

Ibrahim Bilal (UAE) beat Hyan Aljmyah (SYR) RSC round 2.

63.5kg quarter-finals

Nouredine Samir (UAE) beat Shamlan A Othman (KUW) by points 3-0.

67kg quarter-finals

Mohammed Mardi (UAE) beat Ahmad Ondash (LBN) by points 2-1.

71kg quarter-finals

Ahmad Bahman (UAE) defeated Lalthasanga Lelhchhun (IND) by points 3-0.

Amine El Moatassime (UAE) beat Seyed Kaveh Safakhaneh (IRI) by points 3-0.

81kg quarter-finals

Ilyass Habibali (UAE) beat Ahmad Hilal (PLE) by points 3-0

Updated: January 03, 2025, 2:55 PM