A drone deployed in Ukraine. Hamas is accused of using 'unmanned aerial vehicles to facilitate terrorist violence across multiple fronts'. Reuters
A drone deployed in Ukraine. Hamas is accused of using 'unmanned aerial vehicles to facilitate terrorist violence across multiple fronts'. Reuters
A drone deployed in Ukraine. Hamas is accused of using 'unmanned aerial vehicles to facilitate terrorist violence across multiple fronts'. Reuters
A drone deployed in Ukraine. Hamas is accused of using 'unmanned aerial vehicles to facilitate terrorist violence across multiple fronts'. Reuters

US imposes sanctions on Hamas officials involved in drone and cyber operations


Willy Lowry
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The US took aim at Hamas’s cyber and drone operations with a set of terrorism-related economic measures on Friday, imposing sanctions on four of the group's members based in Gaza and Lebanon.

“Today’s joint action reinforces our continued, collective focus on disrupting Hamas’s ability to conduct further attacks, including through cyber warfare and the production of UAVs [unmanned aerial vehicles, also known as drones],” Brian Nelson, undersecretary of the Treasury for terrorism and financial intelligence, said.

The sanctions name Hudhayfa Samir Abdallah Al Kahlut, spokesman for Al Qassam Brigades, the military wing of Hamas in Gaza, William Abu Shanab, Lebanon-based commander of Al Shimali unit, Bara’a Hasan Farhat, Mr Abu Shanab’s assistant and Khalil Muhammad Azzam, an intelligence officer.

Al Shimali unit “manages projects for the development and production of automatic 120mm mortars, mobile launchers for Grad rockets, development and production of flight simulators, UAVs for intelligence gathering and suicide UAVs”, the Treasury Department said.

“The unit’s hundreds of operatives are trained on a range of skill sets to support Hamas terrorist operations, including urban warfare, UAV pilot training, aeronautics, naval diving and intelligence gathering.”

State Department spokesman Matthew Miller added that Hamas has “used information warfare and unmanned aerial vehicles to facilitate terrorist violence across multiple fronts”.

Under the sanctions, any property or interests held in the US by the four people will be blocked and reported to the Office of Foreign Assets Control.

Non-US financial institutions that engage with those named in the measures risk having sanctions imposed as well.

The US has issued several rounds of sanctions against Hamas members and their supporters since last October, when the group carried out an attack against Israel that killed about 1,200 people, according to local tallies, and led to the war in Gaza.

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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