Customs inspectors catch 'mules' with Dh11,000 of heroin



Dubai // Two people have been arrested in separate incidents at Dubai International Airport after being caught with heroin hidden inside their bodies. In the first case, Customs inspectors at Terminal Two noticed an Asian man who seemed reluctant to pick up his luggage. He was stopped and although a search of his bags revealed nothing out of the ordinary, an X-ray of his stomach showed 50 capsules of what turned out to be heroin.

The second suspect was also caught at Terminal Two, after his nervous body language alerted inspectors, Customs said. He had swallowed 30 capsules of heroin. In total, the two seizures amounted to about 500g of the drug, worth US$3,000 to US$4,500 (Dh11,000 to Dh16,500), according to figures from the United Nations Office on Drugs and Crime. Customs officials would not say where the men had flown from, but among other destinations, Terminal Two handles charter and scheduled flights to and from Afghanistan, where most of the world's heroin originates.

The arrests came in the past two weeks. Ali al Mugahwi, the director of passenger operations at Dubai Customs, said increasing numbers of people, known as "mules", were being caught smuggling drugs in their stomachs, but he did not have details on the number of cases passed on to Dubai Police. "It is more common than it used to be. These people are not carrying drugs for themselves - they are paid to carry it for someone else."

He said that some mules were caught transferring directly between flights, while others were paid to bring the drugs to people in Dubai, where they would be stored and shipped out of the country at a later date. "We work very closely with the police on these cases," he added. Earlier this year, a report by the UN's International Narcotics Control Board said the UAE had become "a major exporting and trans-shipping area" for drugs such as heroin and amphetamines, which are manufactured in Asia and sold on the streets of Europe and the US.

Mr al Mugahwi said his staff were using a combination of technology and psychology to intercept drug shipments. "Our inspectors are very well trained in how to spot these criminals and they are committed to catching them. "We do not sleep, we are always ready, and we will catch anyone trying to do this," he warned. "We will not allow drugs to come through - it is very important for the security of the country that we stop this trade."

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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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