Live updates: Follow the latest on Israel-Gaza
Ten months into the Houthi blockade of the Red Sea, industry experts are again asking if the Iran-backed militia has defeated two international naval coalitions trying to keep open the vital shipping route through which about $1 trillion of goods pass every year.
One of those forces is led by the EU and aimed at shooting down Houthi missiles and drones launched at civilian ships and the other is led by the US and UK that has bombed Houthi positions. But the efforts of the US and EU would need to be more robust, said Salvatore Mercogliano, an expert on military and commercial shipping at Campbell University, North Carolina.
The Houthis can expend missiles and drones attacking ships, or lose them in US-led air strikes, but Iran is able to resupply them.
“You would be talking about something akin to the Maritime Interdiction Operations of Iraq from 1991 to 2003. This will require a sizeable naval presence and be another requirement on the world's navies,” Mr Mercogliano said, highlighting how the US navy has also been stretched by Pacific deployments to counter China.
“It would also slow the arrival of cargo into Yemen which could cause a stir from humanitarian groups if it impacts food. This, of course, does not stop shipments by air direct to Yemen from Iran," he told The National.
Iran has used small civilian vessels to move rocket motors and guidance systems into remote, rocky inlets on Yemen’s coast. While some ships have been halted by the US and UK navies, stopping them entirely would be a significant commitment.
The question over which side has “won” was posed last week by Elliot Abrams in an article for the Council on Foreign Relations, a think tank. Mr Abrams, once deputy national security adviser to former US president George Bush, said the US navy hasn’t upheld part of its mission statement to “defend freedom, preserve economic prosperity, and keep the seas open and free".
The debate is in sharper focus amid a delayed attempt to salvage the stricken MV Sounion oil tanker. The vessel, laden with half a million barrels of oil, was struck by Houthi missiles, boarded and rigged with bombs, and is now smouldering in the Red Sea. Civilian salvage teams are reluctant to mount a recovery operation due to the continuing conflict, the EU’s naval mission said. Several more attacks on shipping followed the August 21 strike on the Soumian.
Mr Mercogliano contends the US could achieve better results by striking Iranian assets, perhaps naval vessels of the group’s key backer, if the Houthis continue attacks on shipping in the Red Sea, transit point for about 30 per cent of the world’s container trade. The Houthis say they are maintaining their campaign, which has sunk two ships, damaged dozens and killed three sailors, until Israel ends its devastating war in Gaza.
So far, the attacks have been effective, although Israeli retaliation for direct Houthi strikes on Israel saw fuel and power infrastructure devastated at the port of Hodeidah on July 20. The group has also been hit with fresh western sanctions.
Global trade damage
Despite these setbacks, the campaign has cut transit through the Red Sea by more than 60 per cent, according to a report last month by shipping giant Maersk, raising the cost of maritime trade and causing billions of dollars in losses for Egypt through declining Suez Canal revenue. Financial losses for Israel are unknown, although the port of Eilat has taken a heavy financial blow after months of no revenue.
Meanwhile, the Houthis seem almost impervious to the US and UK air campaign to bomb its hideouts and missile and drone arsenal. This is not a sustained campaign but instead described by Centcom, the US military headquarters in the Middle East, as acting in “self defence.” Mr Abram’s article contends that the US has not “lost” the conflict, but that Washington is too timid amid fears of wider escalation.
US Rear Admiral Marc Miguez, who led a carrier strike group in the Red Sea, recently told naval veteran and YouTuber Ward Carroll that more "aggressive" action was being considered, without elaborating.
Craig Picken, a former US navy pilot and aviation expert who runs Northstar Group, an executive search firm in aerospace, says the dilemma the US now faces should spur a rethink of its military commitment in the region. The US, he says, is spending billions protecting shipping lanes like the Red Sea.
“If it’s international shipping, it should be everybody's job,” he says, highlighting how countries such as China could do more to protect vessels.
China has escorted some of its ships through the waterway, vessels the Houthis appear to be avoiding with their targeting, although a Chinese tanker was damaged in late march, likely a case of poor intelligence.
US navy under strain
Mr Picken explained to The National the difficulty of a full-scale US naval effort to stop Iranian resupply of the Houthis. Even a prolonged non-combat operation intercepting Iranian smuggling boats to the Houthis would place immense strain on ships and aircraft, dragging on for many months, adding billions in cost to naval deployments. A US aircraft carrier, its aircraft and supporting ships can cost up to $8 million a day to deploy.
The aircraft carriers come with E-2 Hawkeye airborne radar planes, capable of surveying hundreds of vessel over hundreds of thousands of square kilometres of ocean in one mission.
The USS Eisenhower aircraft carrier, which was deployed to the Red Sea for nine months, was “ flying the wings off their F-18s, to protect naval assets, to protect their own assets, to shoot down drones.
Millions and millions of dollars in wear and tear on the planes,” said Mr Picker, a veteran E-2 airman. During deployments over Iraq and Somalia in the early 1990s, his squadron “flew 2,000 hours in six months. So that's 500 hours per aeroplane, for a six month cruise,” he said.
Today, 500 hours of flight would cost $20,000,000, at $40,000 per hour, based on US government estimates for the Hawkeye. Add submarine deployments and other assets that could be used to counter other US adversaries, such as satellite reconnaissance, and even action short of war costs billions.
“What’s happening in the Red Sea is unprecedented and it may require a new way of thinking from the western navy forces," said Noam Raydan, a senior fellow at the Washington Institute for Near East Policy, a think tank.
"The Houthis are learning fast and improving their attacks. However, it’s understandable that some western forces like the US may need to be present in different areas in the Middle East at the moment due to the Gaza war," she told The National.
“Meanwhile, some regional Arab countries probably need to start thinking, if they aren’t already about confronting similar maritime threats in the future and under different circumstances. As for vulnerable commercial ships, some are still taking risks and sailing in the region. Others have been forced to take the longer route around the Cape of Good Hope,” she said.
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if you go
The flights
Emirates have direct flights from Dubai to Glasgow from Dh3,115. Alternatively, if you want to see a bit of Edinburgh first, then you can fly there direct with Etihad from Abu Dhabi.
The hotel
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Located in the heart of Mackintosh's Glasgow, the Dakota Deluxe is perhaps the most refined hotel anywhere in the city. Doubles from Dh850
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Events and tours
There are various Mackintosh specific events throughout 2018 – for more details and to see a map of his surviving designs see glasgowmackintosh.com
For walking tours focussing on the Glasgow Style, see the website of the Glasgow School of Art.
More information
For ideas on planning a trip to Scotland, visit www.visitscotland.com
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
SPECS
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More on Quran memorisation:
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.”
More from Neighbourhood Watch
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Children who witnessed blood bath want to help others
Aged just 11, Khulood Al Najjar’s daughter, Nora, bravely attempted to fight off Philip Spence. Her finger was injured when she put her hand in between the claw hammer and her mother’s head.
As a vital witness, she was forced to relive the ordeal by police who needed to identify the attacker and ensure he was found guilty.
Now aged 16, Nora has decided she wants to dedicate her career to helping other victims of crime.
“It was very horrible for her. She saw her mum, dying, just next to her eyes. But now she just wants to go forward,” said Khulood, speaking about how her eldest daughter was dealing with the trauma of the incident five years ago. “She is saying, 'mama, I want to be a lawyer, I want to help people achieve justice'.”
Khulood’s youngest daughter, Fatima, was seven at the time of the attack and attempted to help paramedics responding to the incident.
“Now she wants to be a maxillofacial doctor,” Khulood said. “She said to me ‘it is because a maxillofacial doctor returned your face, mama’. Now she wants to help people see themselves in the mirror again.”
Khulood’s son, Saeed, was nine in 2014 and slept through the attack. While he did not witness the trauma, this made it more difficult for him to understand what had happened. He has ambitions to become an engineer.
Western Region Asia Cup T20 Qualifier
Sun Feb 23 – Thu Feb 27, Al Amerat, Oman
The two finalists advance to the Asia qualifier in Malaysia in August
Group A
Bahrain, Maldives, Oman, Qatar
Group B
UAE, Iran, Kuwait, Saudi Arabia
AIDA%20RETURNS
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RESULTS
Cagliari 5-2 Fiorentina
Udinese 0-0 SPAL
Sampdoria 0-0 Atalanta
Lazio 4-2 Lecce
Parma 2-0 Roma
Juventus 1-0 AC Milan
RedCrow Intelligence Company Profile
Started: 2016
Founders: Hussein Nasser Eddin, Laila Akel, Tayeb Akel
Based: Ramallah, Palestine
Sector: Technology, Security
# of staff: 13
Investment: $745,000
Investors: Palestine’s Ibtikar Fund, Abu Dhabi’s Gothams and angel investors
Karwaan
Producer: Ronnie Screwvala
Director: Akarsh Khurana
Starring: Irrfan Khan, Dulquer Salmaan, Mithila Palkar
Rating: 4/5
Third Test
Day 3, stumps
India 443-7 (d) & 54-5 (27 ov)
Australia 151
India lead by 346 runs with 5 wickets remaining
Profile Periscope Media
Founder: Smeetha Ghosh, one co-founder (anonymous)
Launch year: 2020
Employees: four – plans to add another 10 by July 2021
Financing stage: $250,000 bootstrap funding, approaching VC firms this year
Investors: Co-founders
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Our Time Has Come
Alyssa Ayres, Oxford University Press
Brief scoreline:
Manchester United 2
Rashford 28', Martial 72'
Watford 1
Doucoure 90'
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%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ELuv%20Ranjan%26nbsp%3B%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3ERanbir%20Kapoor%2C%20Shraddha%20Kapoor%2C%20Anubhav%20Singh%20Bassi%20and%20Dimple%20Kapadia%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Result
Crystal Palace 0 Manchester City 2
Man City: Jesus (39), David Silva (41)
GOLF’S RAHMBO
- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)
THE BIO:
Sabri Razouk, 74
Athlete and fitness trainer
Married, father of six
Favourite exercise: Bench press
Must-eat weekly meal: Steak with beans, carrots, broccoli, crust and corn
Power drink: A glass of yoghurt
Role model: Any good man
Manchester City transfers:
OUTS
Pablo Zabaleta, Bacary Sagna, Gael Clichy, Willy Caballero and Jesus Navas (all released)
INS
Ederson (Benfica) £34.7m, Bernardo Silva (Monaco) £43m
ON THEIR WAY OUT?
Joe Hart, Eliaquim Mangala, Samir Nasri, Wilfried Bony, Fabian Delph, Nolito and Kelechi Iheanacho
ON THEIR WAY IN?
Dani Alves (Juventus), Alexis Sanchez (Arsenal)
Australia men's Test cricket fixtures 2021/22
One-off Test v Afghanistan:
Nov 27-Dec 1: Blundstone Arena, Hobart
The Ashes v England:
Dec 8-12: 1st Test, Gabba, Brisbane
Dec 16-20: 2nd Test, Adelaide Oval, Adelaide (day/night)
Dec 26-30: 3rd Test, Melbourne Cricket Ground, Melbourne
Jan 5-9, 2022: 4th Test, Sydney Cricket Ground, Sydney
Jan 14-18: 5th Test, Optus Stadium, Perth
The Voice of Hind Rajab
Starring: Saja Kilani, Clara Khoury, Motaz Malhees
Director: Kaouther Ben Hania
Rating: 4/5
David Haye record
Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4
SPEC%20SHEET%3A%20APPLE%20M3%20MACBOOK%20AIR%20(13%22)
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Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
The specs: 2018 Jaguar E-Pace First Edition
Price, base / as tested: Dh186,480 / Dh252,735
Engine: 2.0-litre four-cylinder
Power: 246hp @ 5,500rpm
Torque: 365Nm @ 1,200rpm
Transmission: Nine-speed automatic
Fuel consumption, combined: 7.7L / 100km
The specs: 2018 Jeep Grand Cherokee Trackhawk
Price, base: Dh399,999
Engine: Supercharged 6.2-litre V8
Gearbox: Eight-speed automatic
Power: 707hp @ 6,000rpm
Torque: 875Nm @ 4,800rpm
Fuel economy, combined: 16.8L / 100km (estimate)
AUSTRALIA%20SQUAD
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”