Ethiopian migrants make their way to a boat in Obock, Djibouti, ready to set sail for Yemen in 2023. AFP
Ethiopian migrants make their way to a boat in Obock, Djibouti, ready to set sail for Yemen in 2023. AFP
Ethiopian migrants make their way to a boat in Obock, Djibouti, ready to set sail for Yemen in 2023. AFP
Ethiopian migrants make their way to a boat in Obock, Djibouti, ready to set sail for Yemen in 2023. AFP

Thirteen dead and 14 missing in Yemen migrant shipwreck


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Thirteen people have died and 14 others are missing after a ship carrying migrants capsized off the southwestern coast of Yemen, the UN-affiliated International Organisation for Migration reported on Sunday, the latest in a series of tragedies in the region involving migrant vessels.

The ship tipped over off the coast of Ta’iz governorate on Tuesday carrying 25 Ethiopian migrants and two Yemeni nationals. It eventually sank in the stretch of sea known as Bab Al Mandeb, the UN organisation said. The sea divides Yemen from neighbouring Djibouti in east Africa, where the boat had set sail.

The bodies of 11 men and two women were recovered on nearby shores, while a search operation continued for those missing, including the ship's captain and assistant.

It was unclear what caused the vessel to capsize.

It follows a similar incident in late July in which 41 people were killed in a capsizing, and another tragedy in June when 56 people died, both off the coast of Yemen.

The route taken by migrants from the Horn of Africa to Yemen is one of the most perilous in the world, with thousands crossing each year trying to reach Gulf states, despite armed conflict in Yemen. The IOM says more than 97,200 migrants arrived in Yemen in 2023. Many are travelling in search of work in Saudi Arabia and other Gulf countries where they can find employment as labourers or domestic workers.

At least 2,082 migrants have died or gone missing on the route since 2014, according to an IOM tally.

The organisation said in June there had been a recent rise in migrant numbers on the route spurred by droughts and other extreme weather events, along with political and economic instability, in Ethiopia and Somalia.

When they arrive in Yemen the migrants must navigate by a nation ravaged by more than a decade of civil war. The country's armed conflict has spawned a humanitarian crisis in which millions are grappling with displacement and poverty. The situation was worsened this month by flash floods that killed at least 57 people and destroyed crops and critical infrastructure, including roads and water supply systems.

The IOM says migrants on the route often face starvation and dehydration, as well as sexual violence and exploitation by human traffickers and smugglers.

“This latest tragedy is a stark reminder of the perils faced by migrants on this route,” said Matt Huber, acting chief of mission for the IOM in Yemen.

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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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A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.

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Updated: August 25, 2024, 9:00 PM