• People react around a car after a reported explosion during a funeral. AFP
    People react around a car after a reported explosion during a funeral. AFP
  • Firefighters stand outside a mobile phone shop after walkie-talkies exploded inside, in the southern port city of Sidon. AP
    Firefighters stand outside a mobile phone shop after walkie-talkies exploded inside, in the southern port city of Sidon. AP
  • A walkie-talkie that exploded inside a house in Baalbek, east Lebanon. AP
    A walkie-talkie that exploded inside a house in Baalbek, east Lebanon. AP
  • Lebanese army soldiers blow up a communication device next to the American University of Beirut. EPA
    Lebanese army soldiers blow up a communication device next to the American University of Beirut. EPA
  • Mourners carry the coffins of victims who were killed on Tuesday after their handheld pagers exploded, during their funeral procession in the southern suburb of Beirut. AP
    Mourners carry the coffins of victims who were killed on Tuesday after their handheld pagers exploded, during their funeral procession in the southern suburb of Beirut. AP
  • Hashim Safieddine, a Shiite Muslim cleric and head of Hezbollah's Executive Council, speaks at a funeral in Beirut's southern suburbs. AFP
    Hashim Safieddine, a Shiite Muslim cleric and head of Hezbollah's Executive Council, speaks at a funeral in Beirut's southern suburbs. AFP
  • A man holds a walkie talkie device after he removed the battery during a funeral. AFP
    A man holds a walkie talkie device after he removed the battery during a funeral. AFP
  • An ambulance arrives in the southern suburb of Beirut after blasts were reported. EPA
    An ambulance arrives in the southern suburb of Beirut after blasts were reported. EPA
  • A man donates blood, one day after the explosions. EPA
    A man donates blood, one day after the explosions. EPA
  • An injured man undergoes an operation, following the explosions. Reuters
    An injured man undergoes an operation, following the explosions. Reuters

Death toll rises to 25 in Lebanon walkie-talkie explosions


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The death toll from the walkie-talkie explosions in Lebanon on Wednesday has risen to 25, with at least 608 wounded, the Lebanese Health Ministry said, as fears mount of the war in Gaza expanding to Lebanon.

Those killed were all members of Hezbollah, the powerful Iran-backed group, which acknowledged the deaths in individual statements commemorating each person.

The attack came as Lebanon was reeling from pager explosions on Tuesday, which killed 12 people, including two children, and injured at least 2,750 others in a suspected Israeli attack on Hezbollah's communication devices. Hundreds suffered severe eye injuries or were blinded by the exploding pagers, western intelligence sources told The National.

In the span of two days, the two waves of device detonations killed 37 people and maimed countless others.

The walkie-talkie explosions were heard across Beirut and eastern and southern Lebanon as funerals of the pager blast victims were being held on Wednesday afternoon, sending mourners into panic.

The unprecedented attacks, which have not been officially claimed by Israel, dealt a major blow to Hezbollah and pushed fears of all-out war to the highest level since the group began exchanging cross-border attacks with Israel on October 8, spurred by the war in Gaza.

Lebanon's civil aviation authority has banned all walkie-talkies and pagers on flights out of the country. Airlines are instructed to inform all departing passengers that the devices are banned on-board and cannot be carried in hand luggage or cargo, according to a Thursday circular published by state media. Any pagers or walkie-talkies found at the airport will be immediately confiscated, the authority added, saying the decision will come into effect immediately.

Hours after the explosions on Wednesday, Defence Minister Yoav Gallant said the military's focus would turn to Lebanon as Israel enters a “new phase” of war.

“We are opening a new phase in the war – it requires courage, determination and perseverance from us,” he said in a visit to an air force base.

Gen Ori Gordin, who leads the Israeli military’s northern command, said the army is “determined to change the security situation in the north as soon as possible”, and that troops are at “peak readiness”.

“We still have many capabilities that we have not yet activated,” he said in a visit to troops holding drills simulating fighting in Lebanon, according to the army.

Some of the walkie-talkies that exploded in Lebanon on Wednesday bore the logo of Japanese manufacturer Icom. Reuters
Some of the walkie-talkies that exploded in Lebanon on Wednesday bore the logo of Japanese manufacturer Icom. Reuters

Cross-border fire continued on Thursday, with Israel striking several areas in southern Lebanon amid reports that eight Israelis were wounded in anti-tank missile fire. Hezbollah claimed it had targeted a military position in Misgav Am, causing deaths and injuries, though there was no immediate comment from the Israeli army.

In Lebanon, civil defence teams said they carried out 211 rescue and relief missions on Wednesday alone, with firefighters called to 25 different sites hit by Israeli attacks. Paramedics responded to 28 reports of people wounded in Israeli shelling, state media said.

The method used to carry out the pager and walkie-talkie attacks is still not clear. According to The New York Times, Israeli intelligence planted explosives in about 5,000 pagers some months ago. Hezbollah switched to pagers as their main form of communication in recent months amid fears mobile phones posed a security threat.

Schools in Lebanon were closed on Wednesday following the first wave of attacks and are expected to reopen on Thursday, according to Education Minister Abbas Al Halabi, who told people “not to listen to rumours on social media”.

Tuesday's attacks, which overwhelmed Beirut's hospitals and prompted Iraq, Iran and Egypt to send medical aid, saw thousands of Hezbollah pagers explode across Beirut, southern Lebanon, and also in Damascus.

Iran's envoy to Beirut, Mojtaba Amani, was among the wounded, and was reported by The New York Times to have lost an eye – a claim denied by the embassy.

A Taiwan-based firm, Gold Apollo, denied they manufactured the pagers, and said the devices were outsourced to BAC Consulting – a Budapest-based company with little online presence.

On Thursday, the Japanese company Icom, whose brand was seen on some of the walkie-talkies that exploded, said it had stopped manufacturing that model a decade ago.

“The IC-V82 is a hand-held radio that was produced and exported, including to the Middle East, from 2004 to October 2014. It was discontinued about 10 years ago and, since then, it has not been shipped from our company,” it said on its website.

“The production of the batteries needed to operate the main unit has also been discontinued, and a hologram seal to distinguish counterfeit products was not attached, so it is not possible to confirm whether the product shipped from our company.”

It also said it had “strict” export controls and used only authorised distributors.

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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Updated: September 19, 2024, 4:28 PM