A boat crosses the Persian Gulf waters, south of the Strait of Hormuz, while passing trading dhows and ships docked near the town of Khasab in Oman. The Nato Shipping Centre has issued guidelines for seamen on how to recognise hijacked vessels.
A boat crosses the Persian Gulf waters, south of the Strait of Hormuz, while passing trading dhows and ships docked near the town of Khasab in Oman. The Nato Shipping Centre has issued guidelines for Show more

Nato helps seamen fight piracy in Gulf waters



DUBAI // Merchant seamen are being taught to identify dhows or fishing boats that have been taken over by Somali pirates, as the raiders adopt a new strategy.

Pirates have been hijacking these smaller vessels for reconnaissance, so they can approach ships without arousing suspicion.

The Nato Shipping Centre has issued a series of presentation slides as a guide to help sailors recognise the hijacked vessels and report them to naval forces operating in the area.

Simon Cartwright, a partner in the Dubai office of law firm Holman Fenwick Willan, which handles piracy cases, said such updated information was crucial as pirates were constantly adapting.

"What we see every time is pirates trying to adapt and change their tactics to meet the challenges they face due to increased use of armed guards and the presence of naval forces," Mr Cartwright said.

"The guide will help ships operating in the region to identify who is and who is not likely to be a pirate, and make it easier for the crew and the armed guards to identify whether they are at risk."

The guides are full of pictures showing the types of dhows, their size and the routes they usually follow.

It identifies Indian and Pakistani dhows as having wide, rounded hulls; Yemeni dhows as having square hulls; and UAE dhows as smaller, usually not for ocean travel and more ornate with elongated hulls.

These dhows are taken over by pirate groups to track merchant vessels and see what kinds of security they have on board, the Nato Centre says.

The advisory asks sailors to report to naval forces the name, position and course of any suspicious vessel, the number of sailors onboard and details of guns, if seen.

Piracy attacks fell to 69 in the first half of this year from 163 over the same period last year, the International Maritime Bureau's recent report says. But the guide calls for vigilance because raids may increase with the end of the monsoon season.

Cmdr Jason Salata, the spokesman for the US navy's Fifth Fleet in Bahrain, said the guide provided crucial pointers.

"It's kind of like a Neighbourhood Watch," Cmdr Salata said. "The more aware merchant vessels are about pirate activity, about what pirate staging looks like, the better they can report it. It's about thwarting a pirate attack.

"We have seen pirates use large dhows as a mother ship and they tow the small skiffs hundreds of miles off the coast for use in piracy.

"The Nato guide can help better inform merchant vessels and once they report to Nato or EU Navfor, the threat can be checked out."

The Nato advisory also warns that innocent traditional fishing is just as common as piracy in high-risk areas such as the Gulf of Aden, the southern Red Sea and the Gulf of Oman to the Arabian Sea.

In a tragic incident in July, an Indian fisherman was killed and three others injured when a US navy vessel fired at their fishing boat off Jebel Ali.

The US navy said it opened fire when the fishing boat disregarded warnings and rapidly approached the American vessel.

Steven Jones, the maritime director of the Security Association for the Maritime Industry, the industry's regulatory body, said more knowledge could prevent fishing boats from being mistaken for piracy vessels.

But Mr Jones said fishermen must be aware not to get too close to armed vessels.

"We have received many anecdotal reports that fishing vessels often proceed towards merchant ships if they are trying to protect their nets," he said.

"While this is perhaps understandable, it is likely to cause alarm onboard the ship."

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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Saturday, April 20: 11am to 7pm - Abu Dhabi World Jiu-Jitsu Festival and Para jiu-jitsu.

Sunday, April 21: 11am to 6pm - Abu Dhabi World Youth (female) Jiu-Jitsu Championship.

Monday, April 22: 11am to 6pm - Abu Dhabi World Youth (male) Jiu-Jitsu Championship.

Tuesday, April 23: 11am-6pm Abu Dhabi World Masters Jiu-Jitsu Championship.

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Saturday, April 27: 4pm and 8pm awards ceremony.