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An Israeli warship has fired Iron Dome interceptors at Houthi drones for the first time in the six-month conflict, according to the country's military.
The aerial defence system was designed for land use and has intercepted thousands of rockets from Gaza and Lebanon. Now it has been adapted for warships to counter the growing threat from missiles and drones fired by Yemen's Houthi rebels.
The naval version of the defence system is known as C-Dome.
Israel on Tuesday said the C-Dome had struck a “suspicious” target that entered the country's airspace near the southern city of Eilat.
Last week, a Houthi drone struck a small Israeli navy base in Eilat, hitting a warehouse close to a naval vessel.
The defence development comes as the US, Israel and allies scramble to find cost-effective ways of downing swarms of low-cost drones that cost from $20,000 to $200,000 and can fly low under radar beams for long ranges.
US and Coalition naval vessels trying to counter a Houthi blockade of the Red Sea have intercepted dozens of Houthi drones. However, in many cases they are using interceptor missiles that can cost between $1 million and $4 million.
The number of those weapons is limited, giving the Houthis the chance to gradually overwhelm naval defence systems.
C-Dome, by comparison, costs roughly $50,000 per launch.
By deploying the C-Dome, Israel is a step ahead of US efforts to put Patriot missile launchers – another air defence system designed for ground use – on to ships.
Using the Patriot system boosts the supply of available missiles but does not solve the cost challenge as they also have a high price tag.
On Monday night the Israeli military reported an alert in the area of Eilat, which was also targeted in February by intercepted ballistic missile fire from the Houthis, who are allies of Hamas.
“The target was successfully intercepted by the C-Dome naval defence system,” the military said in a statement released early on Tuesday.
No injuries or damage were reported.
A military spokesperson would not confirm whether the “suspicious” target had been a drone but told AFP this was “the first operational use of C-Dome”.
Mounted on Sa'ar 6-class corvettes, German-made warships, the C-Dome uses the same interceptor as the Iron Dome, according to state-owned operator Rafael Advanced Defence Systems.
Yemen air strikes
The use of C-Dome comes after the US military said on Monday that it had destroyed Houthi air defence and drone systems in the Red Sea area, with no injuries or damage reported to commercial, US and Coalition ships.
Central Command, the US military headquarters for the Middle East, said on X that its forces had destroyed an air defence system with two missiles ready to launch, a ground control station in Houthi-controlled areas of Yemen and one unmanned aerial system launched by the Houthis from Yemen over the Red Sea.
Houthi forces said on Sunday they had launched rockets and drones at British, US and Israeli ships, the latest attack in a campaign in support of Palestinians in the Gaza war.
Centcom said on Sunday that an anti-ship ballistic missile was launched from a Houthi-controlled area of Yemen towards the Gulf of Aden, but no injuries or damage were reported by US, Coalition or commercial ships.
Houthi attacks have disrupted global shipping through the Suez Canal, forcing firms to switch to longer and more expensive routes around southern Africa.
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Score
Third Test, Day 2
New Zealand 274
Pakistan 139-3 (61 ov)
Pakistan trail by 135 runs with 7 wickets remaining in the innings
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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.”