Hezbollah leader Hassan Nasrallah. AP Photo
Hezbollah leader Hassan Nasrallah. AP Photo
Hezbollah leader Hassan Nasrallah. AP Photo
Hezbollah leader Hassan Nasrallah. AP Photo

Hezbollah takes cash from starving Yemenis


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Sam FM, a radio station affiliated with the Houthi rebels in Yemen, has announced that it has managed to raise half a million dollars since the launch of its crowdfunding efforts last year. The campaign organisers said that more than half the total amount will be donated to the Lebanese militant group Hezbollah, which is regarded as a terrorist organisation by the US, the UK, and Gulf countries. It is no surprise that Hezbollah and the Houthis would support each other. Both are Iran-backed proxies, which have caused chaos in their home countries and beyond.

This campaign was intended to raise funds for the Houthis' military spending while proving that the group could still count on popular support for their cause. Instead, the fundraising effort has highlighted just how desperate Hezbollah has become. The organisation is starting to feel the pinch of increased sanctions from the US and the UK. In February, the UK ceased to differentiate between Hezbollah's political and armed factions, and classified the entire group as a terrorist organisation. Meanwhile, the US has increased economic sanctions on Hezbollah and last year, the US Department of Justice decided to designate the group as a transnational crime organisation. US Sanctions against Tehran have also choked off the Iranian funds the group relies on to survive. This has forced Hezbollah leader Hassan Nasrallah to launch media fundraising campaigns in Lebanon, in March. Now, the group seems desperate enough to accept donations from on of the region's poorest war-ravaged nations.

In a video posted on social media on Saturday, the director general of Sam FM and his team posed in front of the huge piles of money they had collected, chanting "From Yemen's faith to Lebanon's Resistance" and "Death to America". It is morally repugnant to raise such vast sums of money, only to give it to a foreign terror group, especially when ordinary Yemenis are in dire need. Since the start of the civil war in 2015, the country's long-suffering people have lived through violence, starvation and deadly cholera outbreaks. Despite donations worth billions of dollars – chiefly from the UAE and Saudi Arabia – the situation remains bleak. The UN has described it as the world's worst humanitarian disaster. That the Houthis and their supporters have prioritised the financing of a faraway ally, instead of working to improve the everyday lives of their own people, is all the proof anyone could ever need that the rebel group does not have the interests of ordinary Yemenis at heart.

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On sale: October to December

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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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COMPANY PROFILE

Company: Bidzi

● Started: 2024

● Founders: Akshay Dosaj and Asif Rashid

● Based: Dubai, UAE

● Industry: M&A

● Funding size: Bootstrapped

● No of employees: Nine

The Bloomberg Billionaire Index in full

1 Jeff Bezos $140 billion
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3 Bernard Arnault $83.1 billion
4 Warren Buffett $83 billion
5 Amancio Ortega $67.9 billion
6 Mark Zuckerberg $67.3 billion
7 Larry Page $56.8 billion
8 Larry Ellison $56.1 billion
9 Sergey Brin $55.2 billion
10 Carlos Slim $55.2 billion

Asia Cup 2018 Qualifier

Sunday's results:

  • UAE beat Malaysia by eight wickets
  • Nepal beat Singapore by four wickets
  • Oman v Hong Kong, no result

Tuesday fixtures:

  • Malaysia v Singapore
  • UAE v Oman
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UAE Falcons

Carly Lewis (captain), Emily Fensome, Kelly Loy, Isabel Affley, Jessica Cronin, Jemma Eley, Jenna Guy, Kate Lewis, Megan Polley, Charlie Preston, Becki Quigley and Sophie Siffre. Deb Jones and Lucia Sdao – coach and assistant coach.

 
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WRESTLING HIGHLIGHTS
Conflict, drought, famine

Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.

Band Aid

Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.

Super Saturday results

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6.55pm: Al Maktoum Challenge Round 3 Group 1 | $600,000 | (D) | 2,000m
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7.30pm: Jebel Hatta Group 1 | $400,000 | (T) | 1,800m
Winner: Dream Castle, Christophe Soumillon, Saeed bin Suroor.