The US Navy made a remarkable interception of illegal arms on their way to Yemen recently. US Navy
The US Navy made a remarkable interception of illegal arms on their way to Yemen recently. US Navy
The US Navy made a remarkable interception of illegal arms on their way to Yemen recently. US Navy
The US Navy made a remarkable interception of illegal arms on their way to Yemen recently. US Navy


Even a major US arms interception is not enough to save Yemen


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December 05, 2022

There was cautious and rare hope in Yemen for much of 2022. A two-month temporary ceasefire struck in April was extended twice, bringing the longest stretch of peace to Yemenis for almost a decade, and a period in which to start trying to ease the country's terrible humanitarian crisis, in which 11 million face crisis levels of food insecurity, according to UNHCR, the UN's refugee agency.

But it has not lasted, and its breakdown at the beginning of October has already brought about drastically worrying results.

Most importantly of all, a new round of hostilities endangers civilians. It also paves the way for more fighting, a further deterioration in Yemeni sovereignty and new openings for destabilising foreign forces to take advantage of the country's inability to protect itself.

Iran is most to blame in this regard. It has long included Yemen's Houthi rebels among its proxies across the region. And on Saturday, the US accused Tehran of trying to smuggle more than a million rounds of ammunition and rocket components to Yemen, after American forces conducted a major weapons bust at sea.

After the interception, Vice Admiral Brad Cooper, commander of US Naval Forces Central Command, based in Bahrain, said: "This significant interdiction clearly shows that Iran’s unlawful transfer of lethal aid and destabilising behaviour continues.”

In the immediate sense, the bust is good news. Because of the hard work of those involved, 50 tonnes of weaponry will now be denied to criminals. Houthi operations are interrupted and it is clear to them that they cannot act with total impunity.

However, even with the hard work of coalition partners – and the US's Fifth Fleet, stationed in the region, should be lauded – Yemen remains without a solid basis from which to rebuild its security and provide the type of response to tackle problems as complex as smuggling and foreign interference. On top of this, the Houthis continue to target shipping infrastructure, a recent example being the attack on Al Dhabba oil terminal in Yemen's Hadhramaut province. With the world economy already in so much trouble, poor security in large sections of the strategically critical waters around the Gulf cannot be risked.

Almost a decade of hostilities has shown that it is hard for diplomacy to bring a peaceful resolution in Yemen, despite the recent success of the ceasefire. This is not necessarily a failure of diplomacy, rather a sign that not enough is being done.

The UN, western partners and the GCC have shown real commitment. Only on Wednesday UAE President Sheikh Mohamed discussed with Rashad Al Alimi, the Chairman of the Presidential Leadership Council in Yemen, the prospects of strengthening ties between the two nations. Nonetheless, the case for an even more global response is getting stronger.

It is not only Yemen and its neighbours that would benefit. The National has written about how the country has become a hotspot for global smuggling activities, whether in drugs or arms. These operations have reach across the world.

While it has ended, a ceasefire in Yemen did still endure earlier in the year, bringing with it genuine respite. Success again could re-energise diplomatic efforts elsewhere, particularly regarding the many regional issues involving Iran.

Yemen needs help now. It is laudable that the US has stopped a boat carrying weapons that might well have added to the death toll of Yemen's terrible conflict. It is also laudable that this has stopped money being made by criminals, and that the Houthis are being shown they do not have an entirely free pass to act as they wish. But one interception does not end a conflict and it does not do much to build faith in there soon being a plan to build a lasting peace. Getting that will be a lot harder, precisely why there is no time to waste.

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.”

PRO BASH

Thursday’s fixtures

6pm: Hyderabad Nawabs v Pakhtoon Warriors

10pm: Lahore Sikandars v Pakhtoon Blasters

Teams

Chennai Knights, Lahore Sikandars, Pakhtoon Blasters, Abu Dhabi Stars, Abu Dhabi Dragons, Pakhtoon Warriors and Hyderabad Nawabs.

Squad rules

All teams consist of 15-player squads that include those contracted in the diamond (3), platinum (2) and gold (2) categories, plus eight free to sign team members.

Tournament rules

The matches are of 25 over-a-side with an 8-over power play in which only two fielders allowed outside the 30-yard circle. Teams play in a single round robin league followed by the semi-finals and final. The league toppers will feature in the semi-final eliminator.

Gulf Under 19s final

Dubai College A 50-12 Dubai College B

The specs: Volvo XC40

Price: base / as tested: Dh185,000

Engine: 2.0-litre, turbocharged in-line four-cylinder

Gearbox: Eight-speed automatic

Power: 250hp @ 5,500rpm

Torque: 350Nm @ 1,500rpm

Fuel economy, combined: 10.4L / 100km

The biog

Age: 59

From: Giza Governorate, Egypt

Family: A daughter, two sons and wife

Favourite tree: Ghaf

Runner up favourite tree: Frankincense 

Favourite place on Sir Bani Yas Island: “I love all of Sir Bani Yas. Every spot of Sir Bani Yas, I love it.”

Farage on Muslim Brotherhood

Nigel Farage told Reform's annual conference that the party will proscribe the Muslim Brotherhood if he becomes Prime Minister.
"We will stop dangerous organisations with links to terrorism operating in our country," he said. "Quite why we've been so gutless about this – both Labour and Conservative – I don't know.
“All across the Middle East, countries have banned and proscribed the Muslim Brotherhood as a dangerous organisation. We will do the very same.”
It is 10 years since a ground-breaking report into the Muslim Brotherhood by Sir John Jenkins.
Among the former diplomat's findings was an assessment that “the use of extreme violence in the pursuit of the perfect Islamic society” has “never been institutionally disowned” by the movement.
The prime minister at the time, David Cameron, who commissioned the report, said membership or association with the Muslim Brotherhood was a "possible indicator of extremism" but it would not be banned.

Europe wide
Some of French groups are threatening Friday to continue their journey to Brussels, the capital of Belgium and the European Union, and to meet up with drivers from other countries on Monday.

Belgian authorities joined French police in banning the threatened blockade. A similar lorry cavalcade was planned for Friday in Vienna but cancelled after authorities prohibited it.

Updated: December 05, 2022, 3:00 AM