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Ahmad Qassem's daughter did not even get the chance to unwrap her birthday presents. In the early hours of Saturday, a massive Israeli strike on Basta, a densely populated area in central Beirut, completely destroyed her home in one of the most devastating attacks on the city ahead of her much-anticipated day.
Her pink princess dress, which her father had bought for her sixth birthday, now covered in grey dust like much of the shattered neighbourhood, hangs from the door amid the debris where their house once stood.
“Is this what Israel calls a target? This is my daughter’s birthday gift. She hasn’t even worn it,” said Mr Qassem, pointing to the dress.
The family's home was destroyed, along with the eight-storey building next door that was hit by what were reported to be bunker-buster bombs, in the predawn attack. The strike created massive explosions that rocked the centre of Lebanon's capital for the fourth time in a week. The blast was heard across the capital, with the smell of burning explosives lingering in the air for hours.
Israel has escalated its attacks on Beirut in recent days, saying it will negotiate “under fire”, as US-led peace talks have reached a critical point.
Somehow, Mr Qassem's family survived the attack, which killed at least 20 people and injured dozens, according to the health ministry and civil defence officials on the scene. Around 30 others are still missing.
The death toll is expected to rise as rescuers are still identifying victims through DNA testing of remains found at the site. Tearful families are waiting anxiously, hoping for a miracle.
“I cannot realise what happened. I was in my living room, and one second later, I saw myself flying through the air,” Mr Qassem said. “I look at what’s left, and it feels unreal. When you look at this, you would never think the people inside could have possibly survived,” he said, staring at the rubble in obvious shock, as thick smoke billowed behind him from the massive crater left by the strike.
Mr Qassem said he initially thought his daughter was dead but then heard her crying under the rubble. “There was blood everywhere, body parts scattered around, and I even saw a corpse without a head,” he said. “But we’re alive. That's what matters the most, she is my whole life. It’s a miracle.”
Israel has yet to issue an official statement. The AFP news agency, citing a Lebanese security source, reported that the target of the strike was a senior Hezbollah official, whose fate remains unclear. Hezbollah MP Amin Sherri has denied the presence of any Hezbollah members in the targeted building.
Mr Qassem said there were no fighters in his neighbourhood. “We heard about three different potential targets, but no evidence was provided for any of them. And even if there was someone affiliated, it would not justify killing dozens of civilians – sleeping families, children and women,” he said.
A young boy wandered through the rubble behind him as he spoke. His father and grandmother were killed in the strike, Mr Qassem said. They were the next-door neighbours. “He is only 11,” Mr Qassem said. “What does he have to do with any of this? We’re not seen as human.”
There was no warning given before the strike. Israel has typically issued warning notices for specific targets in other areas, such as Beirut's southern suburbs, which have now been mostly depopulated. Hours after the strike in Basta, it issued new eviction orders to residents in south Beirut.
Amnesty International has questioned these eviction orders, labelling them as “misleading”, raising questions around whether they are aimed at mass displacement.
Ali Malek, a civil defence rescuer who rushed to the site right after the attack, said first responders have grown tough skin, facing one traumatic scene after another. Yet, when asked to describe the latest strike, his voice broke, and his eyes filled with tears. “There were so many children,” he was only able to whisper.
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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