Rashid al-Mansuri, Consul General of the United Arab Emirates to Erbil, visits Syrian-Kurdish refugees as aid is distributed by the Emirates Red Crescent at the Quru Gusik (Kawergosk) refugee camp. Safin Hamed / AFP PHOTO
Rashid al-Mansuri, Consul General of the United Arab Emirates to Erbil, visits Syrian-Kurdish refugees as aid is distributed by the Emirates Red Crescent at the Quru Gusik (Kawergosk) refugee camp. Safin Hamed / AFP PHOTO
Rashid al-Mansuri, Consul General of the United Arab Emirates to Erbil, visits Syrian-Kurdish refugees as aid is distributed by the Emirates Red Crescent at the Quru Gusik (Kawergosk) refugee camp. Safin Hamed / AFP PHOTO
Rashid al-Mansuri, Consul General of the United Arab Emirates to Erbil, visits Syrian-Kurdish refugees as aid is distributed by the Emirates Red Crescent at the Quru Gusik (Kawergosk) refugee camp. Sa

Despite UAE aid campaign, UN warns of Syrian refugees’ poverty and desperation


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The Emirates Red Crescent said more than 20,000 people affected by the severe snowstorm Huda in Jordan have benefited from UAE aid since last week's launch of the Compassion campaign.

But it comes against a grim prediction from the United Nations High Commissioner for Refugees, who said large numbers of Syrian refugees were sliding into abject poverty, and at an alarming rate, due to the magnitude of the crisis and insufficient support from the international community.

“I am here to express my solidarity with Syrian refugees, as the impact of snowstorm Huda is still tangible and posing an even greater strain on their already dire living conditions,” said UNHCR’s Antonio Guterres during a two-day visit to Jordan.

“Unless the international community increases its support to refugees, families will opt for ever more drastic coping strategies.

“More children will drop out of school to work and more women will be at risk of exploitation, including survival sex.”

Mr Guterres made the statement at the launch of a new UNHCR study, Living in the Shadows, which revealed evidence of a deepening humanitarian crisis. The study was based on home visits with almost 150,000 Syrian refugees living outside of camps in Jordan last year.

Two-thirds of refugees across Jordan are now living below the national poverty line, and one in six Syrian refugee households is in abject poverty, with less than US$40 (Dh146) per person a month to make ends meet, according to the study.

Almost half of the households researchers visited had no heating, a quarter had unreliable electricity, and 20 per cent had no functioning toilet.

Rental costs accounted for more than half of household expenditures, and refugee families were being forced to share accommodations with others to reduce costs.

Jordan has a registered Syrian refugee population of 620,000, about 84 per cent of whom live outside camps.

“This represents a dramatic pressure in the economy and the society of the country, not to mention the terrible security impact of the Syria crisis in itself,” said Mr Guterres.

“The generosity of the Jordanian people and the government needs to be matched by massive support from the international community – support for the refugees themselves and for the local populations hosting them, but also structural and budgetary support to the Jordanian government for education, health, water and sanitation and electricity, to enable it to cope with this enormous challenge.” The UAE’s Compassion campaign, launched last week by the President, Sheikh Khalifa, has raised more than Dh208 million from government bodies, business and residents of the UAE, and in-kind donations.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has also instructed humanitarian and relief agencies to continue delivery of assistance to Jordan, Lebanon, Palestine and Iraqi Kurdistan throughout the winter. ERC teams also continue to distribute aid packages to Syrian refugees, with the latest distribution taking place in Erbil, in Iraq’s Kurdistan region.

The ERC said yesterday it delivered humanitarian aid to approximately 1,500 people at refugee camps in Al Mafraq Governorate in Jordan.

Hamdan Musallam Al Mazrouei, chairman of the board of the ERC, inspected work at the Emirati-Jordanian Field Hospital in Al Mafraq, which was established in 2012 for refugees. It now serves about 800 outpatients a day.

Mr Al Mazrouei also visited Zaatari refugee camp in Jordan to assess relief needs.

Meanwhile, the UAE’s Human Appeal International has donated US$200,000 (Dh734,600) for 1,200 families, to support Palestinian orphans in the City of Jenin, West Bank.

The aid benefits the poor by supporting the healthcare, educational and social sectors.

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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.”