Live updates: Follow the latest on Israel-Gaza
Yemen's Houthi rebels have escalated their attacks on international shipping, targeting tankers and vessels in recent days and claiming that their assaults are intended to put pressure on Israel to end its war in Gaza.
The Iran-backed rebels have attacked more than 80 vessels with missiles and drones since the war in Gaza began in October. They have seized one vessel and sunk two in their campaign, killing four sailors. Other missiles and drones have either been intercepted by a US-led coalition in the Red Sea or have failed to reach their targets.
But in recent days, the heavily armed militia stepped up the attacks and targeted several vessels carrying oil.
"Houthis are clearly monitoring the course of the ceasefire talks in Gaza, and based on the results and Israel's attempts to prevent a deal, they have moved towards raising the level of escalation," a Yemeni political source told The National.
Talks in Doha and Cairo have failed to reach a ceasefire between Israel and Hamas in Gaza, but are now focused on new proposals put forward by the US to overcome differences between both parties.
Meanwhile, public anger and pressure continue to build against Israeli Prime Minister Benjamin Netanyahu, widely seen as the main obstacle to a ceasefire deal in Gaza that would bring home around 100 hostages still in the devastated Palestinian enclave after almost a year of war.
"Houthis see the pressure and are adding to it. They think that this is the right time for a ceasefire as Hamas's military position seems to be becoming weaker day after day," explained a second Yemeni political source.
"The aim of our attacks is clear: to pressure the Israeli enemy and the United States to stop the aggression on Gaza and lift the siege," stressed a source close to the Houthis.
However, the increase in attacks comes at a particularly notable time.
Weeks of back-channel negotiations involving Iran played a crucial role in preventing a wider conflict between Israel and Hezbollah, despite last month's scenes of rockets and drones over Israel and Lebanon. Israel and Hezbollah continued their daily exchanges since then, but the tension appeared to ease.
Sources in Cairo, Beirut and other regional capitals told The National that Arab mediators in the Gaza ceasefire talks have been increasing their exchanges with Tehran throughout the negotiations, keeping them updated on milestones. The killing of Hamas leader Ismail Haniyeh in Tehran accelerated the exchanges and led to a proposal: minimal retaliation, at least for the time being, in return for more ceasefire influence.
As the situation at the Lebanese-Israeli border calmed, the Houthi attacks heated up.
"It's very likely that the Iranians are trying to increase the pressure on the US and Israel through the Houthis, after they seem to have agreed to de-escalate the Lebanese front," said the second Yemeni political source.
Much like Hezbollah in Lebanon and other armed groups in Syria and Iraq, the Houthis are part of the Axis of Resistance, an anti-western political and military coalition led by Tehran.
Since the outbreak of Israel's war in Gaza in October, the Yemeni rebels, who control Sanaa and territories in the north and west, launched dozens of attacks on international shipping in the strategic waters off Yemen. Their attacks in the Red Sea have disrupted global shipping, forcing companies to reroute to longer and more expensive journeys around southern Africa.
This emergence as an unexpected threat to Israel and a strategic shipping route prompted retaliatory strikes by the US and Britain since February. Washington also designated the militia that seized control of Yemen's capital in late 2014 as a “terrorist group”.
The Yemeni rebels dismissed incentives proposed by the United States to curb their attacks in the Red Sea, Yemeni political sources told The National in April.
Late on Monday, the Houthis claimed responsibility for attacking the Panama-flagged Blue Lagoon I with several missiles and drones. The US military confirmed the attack, claiming that the group had also struck the Saudi-flagged Amjad in the Red Sea. The US Central Command said they used two ballistic missiles and a one-way attack unmanned aerial system to hit both vessels that were laden with crude oil, with the Amjad carrying about two million barrels. It described the attacks as "reckless acts of terrorism by the Houthis".
However, on Tuesday, Saudi shipping company Bahri denied that its tanker had been attacked in the Red Sea.
In recent months, the Blue Lagoon I travelled to India, which gets more than 40 per cent of its oil imports from Russia despite Moscow's war on Ukraine and the international sanctions it faces over it. The Greek-based company operating the ship could not be reached. The Joint Maritime Information Centre said it assessed that the ship “was targeted due to other vessels within its company structure making recent port calls in Israel”.
Meanwhile, the US military said a rescue mission was under way for an oil tanker still ablaze after a Houthi attack off the coast of Yemen last month.
The Greek-flagged oil tanker Sounion was carrying about one million barrels of oil when the Houthis initially attacked it on August 21 with small arms fire, projectiles and a drone boat. A French destroyer operating as part of Operation Aspides rescued the Sounion’s crew of 25 Filipinos and Russians, as well as four private security personnel, after they abandoned the vessel, and took them to nearby Djibouti.
The US Central Command said the ship was “still on fire and threatens the possibility of a major environmental disaster”. The Houthis allowed it to be towed after several international requests.
In response to the Houthi attacks in the Red Sea, the US military said on Tuesday that its forces destroyed two missile systems in a Houthi-controlled area of Yemen in the past 24 hours. The systems “presented an imminent threat to US and coalition forces and merchant vessels in the region”, it added.
“The Houthis’ failure to make the Red Sea impassable has resorted to them attempting to conduct more high profile attacks, such as detonating explosive charges on an oil tanker, which could potentially cause 150,000 tonnes of oil to spill into the Red Sea," said Nick Loxton, intelligence delivery and innovation manager at Roke Intelligence.
"The resulting environmental disaster would resonate significantly with a western audience, bringing the Houthi’s cause back into mainstream current debate and, in turn, increasing the pressure for a settlement in the Israel-Gaza conflict," added the expert.
“Such an attack is a textbook insurgent ‘asymmetric’ act, hoping to provoke a hasty reaction from western forces which in turn can be exploited within the information warfare domain to the Houthis and Iran’s advantage.”
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What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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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What can you do?
Document everything immediately; including dates, times, locations and witnesses
Seek professional advice from a legal expert
You can report an incident to HR or an immediate supervisor
You can use the Ministry of Human Resources and Emiratisation’s dedicated hotline
In criminal cases, you can contact the police for additional support
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