Rebel fighters of the Southern Front of the Free Syrian Army are under threat. Reuters
Rebel fighters of the Southern Front of the Free Syrian Army are under threat. Reuters

Southern Front rebels are at risk of disintegrating



Reports emerged last Friday that a leader of one of the largest factions in southern Syria had been ousted by his comrades. The episode is part of a broader campaign that could unravel what is often cited as the most successful model for the rebels across the country.

According to reports from Deraa, the leader of the Syrian Revolutionary Front was pushed aside and replaced by Major Qassem Najm, a military defector.

A source close to the ousted commander confirmed the news and accused Ahrar Al Sham and its regional backers of engineering the move. Last Tuesday, six sub-factions of the revolutionary front issued statements declaring allegiance to Major Najm.

The Southern Front is a rare model for the Syrian rebels. Local groups generally lack a unified command centre, although they collaborate on the front lines throughout the country. Numerous social, political and military factions enabled the groups in the south to coalesce and work towards a relatively moderate and nationalist model under a joint command. Extremist groups largely failed to outperform nationalist forces there, as they did in the north.

Another key factor that differentiates the north from the south in terms of extremist dominance is that backers of the southern coalition have sought to strengthen national forces over Islamist factions. In the north, Turkey’s unbridled support for Islamists created the reverse situation. The two fronts had different sets of foreign backers over the course of the conflict. Qatar and Turkey, for example, had almost uncontested spheres of influence in the northern parts.

The involvement of different foreign backers has also had an effect on which rebel faction dominates where. An obvious example is Ahrar Al Sham, which has failed to establish a meaningful presence beyond the areas bordering Turkey. If the group is powerful, its organisational, ideological and political brand would have helped it attract a following elsewhere, especially since it is known for the financial and logistical support it receives from its backers.

The alternative for extremist groups and their backers is to play a different game. And that seems to be happening in the south, primarily through a campaign to shake up the Southern Front by accusing the rebels of inaction allegedly due to pressure from the United States-led military operations command.

To understand what happened on Friday, take the comments made by Saleh Al Hamwi, a former leader of Al Qaeda’s Jabhat Al Nusra, which was recently rebranded as Jabhat Fateh Al Sham.

Mr Al Hamwi, who is now close to Ahrar Al Sham and its sponsors, made a series of tweets in June, in which he called for a “soft coup” against the Southern Front.

He wrote: “Rebels in Deraa must push aside the notables who support the regime from their tribes. Rebel elites must do the same to the local council members who advocate peace and quiet [with the regime]. Islamist factions must reach out to the honest among the military operations command-backed factions.”

Active battles in the south mean more refugees flow across the border into Jordan. So Amman has supported de-escalation in southern Syria, including an end to Russian airstrikes in rebel areas. Rebels in Deraa dispute the idea that they are prevented by their backers from fighting the regime, citing active fronts across the region.

Rebels there also note that a similar campaign targeted Jaish Al Islam near Damascus even though it does not receive funding from the military operations command. Jaish Al Islam is also rivalled by the same parties that attack the Southern Front.

In June, I warned on this page that the Southern Front has been facing four-way pressure that could lead to its demise. The US-led military operations command seems to have focused on the growing threat of ISIL in southern Syria and has pressed the rebels to root out the group in their midst. A third source of pressure was the coordinated campaign against the Southern Front’s supposed inaction, while the last point of pressure came from local families who support truces and de-escalation.

The coordinated campaign against the Southern Front is also framed in dangerous terms. In mid-July, 54 clerics, including Al Qaeda-affiliated figures but also mainstream Syrian clerics, issued a fatwa prohibiting membership of a rebel faction whose commander refuse to initiate a battle against the regime.

The fatwa specified the Southern Front, albeit such dynamics also exist in the north; activists near Damascus, in response, have asked rebels in the north to focus on regime strongholds within their firing range, such as Foua and Kefraya near Idlib.

Propaganda against the coalition is boosted by the legitimacy of concerns of prioritising the fight against ISIL against the regime, and the risks of the breakdown of the Southern Front are real.

Extremist forces have tried to establish a foothold for themselves in the area, but they often faced tribal, factional and social resistance. Steps have to be taken to prevent extremist forces in their current campaign to buy loyalty where they failed to sell their extremist views.

Hassan Hassan is a resident fellow at the Tahrir Institute for Middle East Policy and co-author of ISIS: Inside the Army of Terror

On Twitter: @hxhassan

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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.”