A Syrian rebel fighter sits in a 'Management of Liberated Areas' authority office in Maaret al-Numan, in the northwestern Syrian Idlib province.AFP
A Syrian rebel fighter sits in a 'Management of Liberated Areas' authority office in Maaret al-Numan, in the northwestern Syrian Idlib province.AFP
A Syrian rebel fighter sits in a 'Management of Liberated Areas' authority office in Maaret al-Numan, in the northwestern Syrian Idlib province.AFP
A Syrian rebel fighter sits in a 'Management of Liberated Areas' authority office in Maaret al-Numan, in the northwestern Syrian Idlib province.AFP

Syria conflict has not yet ended, says UN envoy


Adla Massoud
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The UN envoy for Syria, Geir Pedersen, said on Tuesday that the conflict in the country has not yet ended, highlighting recent clashes in the north involving Turkish-backed forces and Kurdish groups, and Israeli incursions into Syrian territory.

Mr Pedersen told the UN Security Council from Damascus of armed opposition groups operating independently of the military command, particularly elements within the Syrian National Army, largely under the Syrian National Coalition's control.

He said significant areas, including parts of north-eastern Syria and neighbourhoods in Aleppo city, are still held by the Syrian Democratic Forces, with support from the US.

The briefing marked the council’s first open meeting since the December 8 removal of former Syrian president Bashar Al Assad after a major offensive launched by rebel forces, involving Hayat Tahrir Al Sham and the Syrian National Army, a coalition of armed groups believed to be backed by Turkey.

The envoy expressed grave concerns over the recent hostilities that persisted until a ceasefire was established between Turkey and US-backed rebels two weeks ago. Washington supports the Kurdish-led Syrian Democratic Forces, which Ankara equates to Kurdish secessionists who have been fighting against the Turkish state for decades.

“A five-day ceasefire has now expired and I am seriously concerned about reports of military build-ups,” Mr Pedersen said. “Such an escalation could be catastrophic.”

He said Israel had conducted more than 350 strikes on Syria after the fall of the former regime, including a major strike on Tartus, and called on Israel to stop all settlement activity in the occupied Golan Heights, declaring it "illegal".

"Attacks on Syria's sovereignty and territorial integrity must stop," said Mr Pedersen.

Russia's UN ambassador Vasily Nebenzya criticised Israel for recent attacks, saying they were launched under the "artificial pretext of self-defence". He said Israel's operations aimed to dismantle the country's defences.

"There is also the land incursion by the Israeli forces in the occupied Syrian Golan Heights," he said. "The argument that the peacekeepers need to be protected sound very cynical, given that the peacekeepers currently are essentially very deep behind Israeli lines."

Israeli Prime Minister Benjamin Netanyahu held a security briefing at the top of a strategic hill inside the UN-patrolled buffer zone in the Golan Heights, which Israel seized this month.

Mr Pedersen briefed Security Council members on his discussions with Hayat Tahrir Al Sham leader Ahmad Al Shara and various Syrian factions.

He outlined several challenges facing Syria, emphasising the critical need to launch an inclusive political process, rehabilitate state institutions, bolster humanitarian aid for Syrians and returning refugees, pursue justice and accountability for crimes, and foster economic recovery.

“These are enormous challenges that will require all of our support … in terms of economic development, reconstruction and a process to address and ultimately end sanctions,” he said.

Mr Nebenzya said it is up to the Syrian people, in all of its ethnic and religious diversity, to decide the future of their country, which is "quite uncertain, given the internal lack of stability".

"The territorial integrity of this country is more vulnerable now than ever. There's a real risk of its becoming a number of cantons broken down by ethnic and religious characteristics," he said.

Moscow is allied to Mr Al Assad, and the former Syrian leader has taken shelter in Russia with his family.

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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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