Damage to Al Rasul Al Aazam Cancer and Oncology Hospital's unfinished wing in northern Saada province after it was bombed by the US. AFP
Damage to Al Rasul Al Aazam Cancer and Oncology Hospital's unfinished wing in northern Saada province after it was bombed by the US. AFP
Damage to Al Rasul Al Aazam Cancer and Oncology Hospital's unfinished wing in northern Saada province after it was bombed by the US. AFP
Damage to Al Rasul Al Aazam Cancer and Oncology Hospital's unfinished wing in northern Saada province after it was bombed by the US. AFP

US strikes will not stop Red Sea shipping attacks, Houthis warn


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Yemen's Houthi rebels have said they will not be defeated by continued US attacks.

The group's heartland of Saada and Amran were hit 17 times by the US overnight on Tuesday and into Wednesday, the rebels said. Warplanes carried out “aggressive air raids … causing material damage to citizens' property”, they added. There were no further details given of deaths or injuries.

Mahdi Al Mashat, chairman of the Houthis' Supreme Political Council, told US President Donald Trump that the entire duration of his term in office would not be enough to stop their attacks on shipping in the Red Sea. “Your decision to attack our country to dissuade us from supporting Gaza will not succeed, and will not stop until the aggression stops and the siege is lifted,” he said in a statement addressed to Mr Trump.

“Your entire presidential term will not be enough to dissuade us.”

The Houthis claimed solidarity with the Palestinian people by attacking international shipping routes after the start of the Israel-Gaza war. The rebels had paused their campaign when a ceasefire in Gaza took effect in January, however, they resumed attacks when the truce was broken by Israel.

“The reckless decisions of US President Donald Trump have no legitimacy at all and are a desperate attempt to protect the Zionist enemy and support its crimes, aggression and siege against the Palestinian people,” Mr Al Mashat said.

On March 15, the US announced another military offensive against the Houthis, promising to use overwhelming force until the group stopped firing on vessels in the shipping routes of the Red Sea and Gulf of Aden.

Washington said Houthi leaders had been killed in the first day of strikes that the rebel-run health ministry said took the lives of 53 people. Since then, rebel-held areas in war-torn Yemen have been struck on almost a daily basis, but the Houthis have vowed their attacks on shipping would not stop.

“The international community must declare a firm and unified position towards American recklessness and to stop them from supporting the criminal Zionists, who represents a threat to international peace and security,” Mr Al Mashat said.

Mr Trump has threatened to “annihilate” the Houthis and warned Tehran against continuing to aid the group.

The US this month placed sanctions on seven senior members of the Houthi militia, along with a Yemeni businessman linked to the Iran-backed group, for allegedly procuring weapons from Russia and supplying Moscow with fighters for its war in Ukraine.

Houthi leaders say they will escalate attacks in response to the US campaign. “Now we see that Yemen is at war with the US and that means that we have a right to defend ourselves with all possible means, so escalation is likely,” Jamal Amer, the Houthi foreign minister, told Reuters from Sanaa on Monday.

It comes as Yemen marked a decade since the Saudi-led coalition intervened in the conflict.

“For 10 years, Yemenis have endured relentless conflict, economic collapse and limited access to life-saving health and nutrition services,” said Caroline Sekyewa, International Rescue Committee country director in Yemen. In 2025, an estimated 19.5 million people will need humanitarian assistance and protection – an increase of nearly seven per cent compared to 2024, according to the organisation.

The IRC has said Yemen's humanitarian response remains critically underfunded. Only five per cent of the $2.4 billion needed to help 10.5 million people has been provided, it said.

Aid agencies have had to scale back essential support such as food distribution and have limited their access to clean water and other services in 2024.

“Humanitarian aid has been their lifeline – preventing disease outbreaks, delivering health care, responding to natural disasters and helping families to survive. For donor governments to consider reducing or removing that support is not just short-sighted, it puts millions of lives at risk,” Ms Sekyewa said.

“After a decade of crisis, political solutions and economic recovery are now needed more than ever to secure long-term stability. Yet the fact is that today, aid is what stands between life and death for millions.”

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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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Updated: March 26, 2025, 12:43 PM