People gather at the rubble of a house hit by a US air strike in Saada, Yemen. Reuters
People gather at the rubble of a house hit by a US air strike in Saada, Yemen. Reuters
People gather at the rubble of a house hit by a US air strike in Saada, Yemen. Reuters
People gather at the rubble of a house hit by a US air strike in Saada, Yemen. Reuters

US strikes on Houthis send warning to Iran, experts say


Mina Aldroubi
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US strikes on Yemen’s Houthi rebels send a warning message to Iran but will prolong civilian suffering, which the group will then exploit, officials told The National on Sunday.

US President Donald Trump ordered strikes on Houthi-held areas in Yemen late on Saturday, promising to use “overwhelming lethal force” until the Iran-backed rebels stop their attacks on ships in the Red Sea and Gulf of Aden.

The attacks killed "multiple" Houthi leaders and ensured Iran was "put on notice" to end its support for the rebel group, the White House said on Sunday.

The strikes "actually targeted multiple Houthi leaders and took them out", National Security Adviser Michael Waltz told ABC News. He told Fox News the US "just hit them with overwhelming force and put Iran on notice that enough is enough".

The US is exerting so-called maximum pressure on Iran and its proxies in the region. Mr Trump has increased sanctions on Tehran while trying to convince the regime to return to the negotiating table over its nuclear programme.

“The main message is for Iran, President Trump wants to tell them he can target them next. As he likes to say, ‘negotiation through strength’,” Baraa Shiban, a Yemen expert and associate fellow at the Rusi defence think tank, told The National. “It looks, from the intensity of the strikes, like this operation will continue, which will degrade their [the Houthis] capabilities, similar to what happened with Hezbollah in Lebanon."

The strikes, which killed at least 31 people, came shortly after the Yemeni rebels said they would resume their attacks on Red Sea shipping following Israel’s blockade on Gaza. There have been no reports of Houthis attacking international ships since.

Mr Trump is trying to be "proactive and strike the Houthis, rather than wait until they attack,” Mr Shiban said.

These attacks, which caught the Houthis by surprise, are in stark contrast to previous strikes by the administration of Joe Biden that were expected.

"I was completely surprised to see the level of accuracy of these targets," said Fatima Alasrar, a senior policy analyst at the Washington Centre for Yemeni Studies. "It indicates a real knowledge of sites that the Houthis have hidden deeply within civilian areas, and the fact that the United States can target it with such precision at this very moment just signifies to the Houthis that the US is watching, and that they know exactly what the Houthis are up to."

Ms Alasrar told The National that the strikes were reminiscent of when Israel detonated the pagers of thousands of Hezbollah fighters.

“This message got heard loud and clear, and was really the only response of a strong nation that won't allow proxies to run the region," she said.

A girl injured in a US strike lies in hospital in Saada, Yemen, on Sunday. Reuters
A girl injured in a US strike lies in hospital in Saada, Yemen, on Sunday. Reuters

A statement by Sanaa’s municipality and local authorities, seen by The National, called on civilians to flee Houthi-held areas and seek safety. “These developments that are targeting the Houthis will have a direct effect to further exacerbate the suffering of the Yemeni people,” it said. “The continuation of these escalations will bring further suffering to Yemen, and put it at the forefront of regional and international escalation."

In response to Washington’s attacks, the rebels' political bureau said US “aggression” would not go unanswered, with escalation met with escalation.

Authorities called on civilians to follow government guidelines and ignore opposition groups that “will attempt to cause chaos throughout the country”.

A Yemen-government official said authorities welcomed the move by Mr Trump to exert pressure on the Houthis and in turn send a warning to Iran to stop its support for proxies.

Mr Trump's "decisive approach is exactly what was needed to confront the Houthis", he said on condition of remaining anonymous. "Appeasement has only emboldened them. Only strength can bring stability and not concessions. The strikes are also a message to Iran to halt its actions and meddling in other states' affairs."

However, while the attacks focus on military installations and equipment, as well as draining Houthi resources, the group has consistently demonstrated its ability to adapt and recover, said Osamah Al Rawhani, Yemen expert and non-resident senior fellow at the Atlantic Council’s Middle East Programmes.

"Beyond their direct impact on the Houthis, these air strikes deeply affect civilians, as Houthi-controlled territory represents more than 60 per cent of Yemen’s population," he told The National. "This instils fear and increases resentment towards the United States from citizens who do not support the Houthis.

The attacks must have a "comprehensive approach that disrupts weapons and parts-smuggling from Iran, and addresses the political and economic drivers empowering the Houthis," he said "This week’s bombings risk prolonging the suffering of Yemenis."

Iran-backed Hezbollah condemned the large-scale military strikes, in a statement on Sunday.

Washington redesignated the Houthis a foreign terrorist organisation this month, reversing a Joe Biden-era policy.

The attacks also came days after Mr Trump sent a letter to Iran's supreme leader Ayatollah Ali Khamenei, offering to hold talks on Tehran's nuclear programme. Mr Khamenei rejected the proposed negotiations, saying it letter was aimed at "deceiving public opinion" and increasing pressure on Iran.

Willy Lowry contributed to this report from Washington

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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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Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

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Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

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Manchester United 1 (Rashford 36')

Liverpool 1 (Lallana 84')

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