US Secretary of Defence Lloyd Austin. EPA
US Secretary of Defence Lloyd Austin. EPA
US Secretary of Defence Lloyd Austin. EPA
US Secretary of Defence Lloyd Austin. EPA

Pentagon chief says US will make sure Ukraine gets arms it needs


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US Defence Secretary Lloyd Austin on Monday promised to keep weapons flowing into Ukraine “week after week” as Kyiv struggles against a renewed Russian offensive.

Mr Austin also said it was vital that Ukraine's air defences be bolstered to help fend off Russian attacks.

Moscow has in recent weeks focused its attacks on north-east Ukraine, launching new assaults in the Kharkiv region.

Mr Austin and about 50 defence leaders from around the world met online on Monday to co-ordinate more military aid to Ukraine as it tries to hold off Russia's advances while conducting its own offensive in the occupied Crimean Peninsula.

“We're meeting in a moment of challenge,” he told colleagues.

He told reporters after the meeting: “We’ll continue to push to ensure that Ukraine owns its skies and can defend its citizens and its civilian infrastructure far from the front lines.”

The Ukrainian military has suffered setbacks in recent months, partly due to the US Congress delaying funding and equipment.

Ukraine has struggled to get enough troops to the front lines as the war drags on into its third year and fighting takes its toll.

In the four weeks since US President Joe Biden signed the $95 billion foreign aid package, which included about $61 billion for Ukraine, the US has sent $1.4 billion in weapons pulled from Pentagon stockpiles and announced it was providing $6 billion in funding through the Ukraine Security Assistance Initiative.

In recent packages, the US has agreed to send High Mobility Artillery Rocket Systems (Himars) and rockets for them, as well as munitions for Patriot and National Advanced Surface-to-Air Missile Systems, artillery, anti-aircraft and anti-tank munitions, and armoured vehicles, such as Bradley and Mine Resistant Ambush Protected vehicles.

The US has now provided about $50.6 billion in military assistance to Ukraine since Russia invaded in February 2022.

  • Air defence: Ukraine’s air defence largely depends on the Patriot system. AFP
    Air defence: Ukraine’s air defence largely depends on the Patriot system. AFP
  • Air: Stinger short-range surface-to-air missile. Reuters
    Air: Stinger short-range surface-to-air missile. Reuters
  • Air: Aim-120 air-to-air missiles. More than 14,000 of the missiles, that have a range exceeding 120km, have been produced with their accuracy so good that they have been nicknamed “Slammer”. Getty Images
    Air: Aim-120 air-to-air missiles. More than 14,000 of the missiles, that have a range exceeding 120km, have been produced with their accuracy so good that they have been nicknamed “Slammer”. Getty Images
  • Air: F-16s will provide greater surveillance and the ability to attack high-value targets behind Russian lines in occupied Ukraine. EPA
    Air: F-16s will provide greater surveillance and the ability to attack high-value targets behind Russian lines in occupied Ukraine. EPA
  • Armour: Bradley IFV. The Ukrainians have found the Bradley infantry fighting vehicle, with its 25mm cannon, very useful in protecting troops and providing decent firepower. Bloomberg
    Armour: Bradley IFV. The Ukrainians have found the Bradley infantry fighting vehicle, with its 25mm cannon, very useful in protecting troops and providing decent firepower. Bloomberg
  • Armour: M113. The 1960s-designed versatile M113 armoured personnel carrier has proven effective in protecting troops against minefields. Getty Images
    Armour: M113. The 1960s-designed versatile M113 armoured personnel carrier has proven effective in protecting troops against minefields. Getty Images
  • Artillery: 155mm artillery rounds. A massive delivery of 155mm rounds could prove crucial in preventing further Russian advances, particularly in its expected summer offensive. AFP
    Artillery: 155mm artillery rounds. A massive delivery of 155mm rounds could prove crucial in preventing further Russian advances, particularly in its expected summer offensive. AFP
  • Artillery: ATACMs long-range precision missiles. The ATACMS have a range of 300km with the ability to land within a few metres of a target. Getty Images
    Artillery: ATACMs long-range precision missiles. The ATACMS have a range of 300km with the ability to land within a few metres of a target. Getty Images
  • Artillery: Ground-Launched Small Diameter Bomb (GLSDB). It can be fired from the HIMARS system. Photo: Wikimedia Commons
    Artillery: Ground-Launched Small Diameter Bomb (GLSDB). It can be fired from the HIMARS system. Photo: Wikimedia Commons
  • Artillery: M777 guns and replacement barrels. The Ukrainians need many M777 howitzer barrels to replace those worn down by extensive use. Getty Images
    Artillery: M777 guns and replacement barrels. The Ukrainians need many M777 howitzer barrels to replace those worn down by extensive use. Getty Images

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.”

Our family matters legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Favourite Meal: Chicken Caesar salad

Hobbies: Travelling, going to the gym

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When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

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Range: Up to 610km

Power: 905hp

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