A video grab shows an alleged strike against Southern Transitional Council (STC) forces in Hadhramaut. AFP
A video grab shows an alleged strike against Southern Transitional Council (STC) forces in Hadhramaut. AFP
A video grab shows an alleged strike against Southern Transitional Council (STC) forces in Hadhramaut. AFP
A video grab shows an alleged strike against Southern Transitional Council (STC) forces in Hadhramaut. AFP

UAE urges dialogue as Saudi Arabia declares readiness to host Yemeni talks


Mohamad Ali Harisi
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The UAE on Saturday urged de-escalation and constructive dialogue to resolve Yemen’s internal disputes, after Saudi Arabia said it was ready to host talks on the southern issue.

In a statement shared with The National, the Ministry of Foreign Affairs said it was closely following recent developments in Yemen and expressed its "deep concern over the ongoing escalation".

"The UAE calls upon the brotherly Yemeni people to prioritise wisdom, exercise restraint, and work to ensure security and stability in the country," it added.

"The UAE further affirms that de-escalation and constructive dialogue remain the most effective path to overcoming current challenges, contributing to lasting stability in Yemen and the region, and fulfilling the aspirations of their peoples for security and prosperity."

Earlier on Saturday, Saudi Arabia welcomed a request from Rashad Al Alimi, the chief of Yemen's Presidential Leadership Council (PLC), to hold talks in Riyadh and called on all southern factions to join the conference.

The dialogue aims to develop a comprehensive vision for “just solutions” to the southern issue that "fulfil the legitimate aspirations of the southern people", the Saudi government said.

The Saudi authorities have not yet announced who will be invited or when the conference will be convened. However, Mr Al Alimi said he hoped the talks would include "all southern components, forces and figures without exception, including the Southern Transitional Council" (STC).

Mr Al Alimi spoke after the STC announced the launch of a two-year transitional phase culminating in a referendum on self-determination for the south.

Qatar, Bahrain, and other countries welcomed Mr Al Alimi's call to hold the conference.

In Doha, the Ministry of Foreign Affairs expressed Qatar's "appreciation" to Saudi Arabia for hosting the talks, "as part of its ongoing support for efforts aimed at achieving security and stability in the Republic of Yemen". Qatar emphasised the importance of all southern factions participating in the conference.

Jamal Rushdi, spokesman for the Arab League's Secretary-General, said that the southern issue has "just" aspects that must be addressed through dialogue within a "comprehensive Yemeni framework".

Weeks of tension spiralled into clashes on the ground on Friday as Hadhramaut's governor, backed by the PLC chief, launched a military operation to retake the STC-held positions, risking internal bloodshed at a fragile moment. The STC said air strikes hit areas in the south, and the Hadhramaut governor later said that forces took control of the largest military camp in the governorate. The National was unable to independently verify the claims.

The STC had taken control of Hadhramaut and Mahra from other pro-government forces, effectively consolidating its grip over all southern governorates. It said the developments followed the failure of other pro-government factions to launch a serious campaign against the Iran-backed Houthis in their northern strongholds, including the capital, Sanaa.

However, Saudi Arabia condemned the STC’s takeover. The kingdom has led the anti-Houthi alliance since 2015, with the UAE playing a key role in halting the advance of the Iran-backed rebels, expelling them from the south and combating extremist groups such as Al Qaeda and ISIS.

The UAE Ministry of Defence confirmed on Saturday the conclusion of its counter-terrorism presence in Yemen.

In its statement, the Ministry of Foreign Affairs stressed the importance of de-escalation, "giving precedence to dialogue over confrontation, and addressing existing differences among Yemenis through understanding and consensus on sustainable political solutions".

"This should be pursued through a rational and responsible approach that prioritises the interests of the country and its people, with stability and prosperity as the foremost priorities," it added.

Southern forces, trained by the UAE, played a significant role in driving Houthi fighters out of south Yemen and combating terrorism between 2015 and 2018. The STC later emerged as a political umbrella for many of the southern forces involved in those campaigns.

Yemen’s unification in 1990 brought together two states whose divisions were never fully resolved. The north emerged from a 1962 uprising, while Britain’s 1967 withdrawal from Aden shaped the south.

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.”

Updated: January 05, 2026, 7:21 AM