Ships warned that piracy still exists


Ramola Talwar Badam
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DUBAI // Merchant vessels and yachts have begun sailing dangerously close to a still volatile Somali coastline posing a threat to the crew and ships.

A warning to stay clear from the Somali coast that remains a high-risk piracy zone was issued by officers from the European Union Naval Force visiting the UAE ahead of an international counter-piracy conference.

Vessels are moving closer to the Somali coastline because of reduced incidents of pirate attacks and to save money and fuel, said officers aboard the Italian navy destroyer Andrea Doria, the Eunavfor’s flagship to combat piracy.

“It’s not good to see that the shipping companies are already moving so fast and so close to the coast of Somalia,” said Alessandro Mariani, a diplomat from the European External Action Service of the EU.

“Why are they doing that? Because in their mind they judge that the risk has diminished and they can therefore afford to go to routes closer to Somalia. This makes them save financial resources, but in our opinion they are moving too fast towards the coast.”

In 2009 there were 51 hijackings off the Somali coast, in 2012 the figure was seven and dropped to zero in 2013.

Patrolling by naval forces, self-protection measures, armed guards on merchant vessels and sharing intelligence information have dented Somali pirate attacks.

Officials representing 60 countries and 20 international organisations are in Dubai for the Contact Group on Piracy off the Coast of Somalia as part of the UAE Counter-piracy Week.

The Andrea Doria’s UAE visit is linked to the Contact Group meeting that ends on Tuesday. The warship along with other anti-piracy task force ships has provided fuel and supplies to vessels that over the past few months have moved near the Somali coast.

Ulrich Brosowsky, the EU Force headquarter’s chief of staff, said the message to merchant shipping was clear: “This area is still a pirate area, this is still a high-risk area. You have to take precautionary measures and you have to stay away from the Somali coast.”

Two weeks ago a cargo ship carrying 8,000 tonnes of cement travelled along the Somali coast at a speed of five knots and was forced to anchor off the coast when it encountered engine trouble.

The ship was approached by locals offering assistance who began climbing on board. The crew managed to fend them off, restarted the vessel and radioed for help.

The Eunavfor and the Nato task force provided the cargo ship air cover to help them navigate out of the danger zone by identifying where Somali skiffs were located.

“Two years have gone by since the last successful attack and the merchant community has started to close in again on the Somali coast,” Capt Brosowsky said.

The Eunavfor decided last year that its Somalia mission would extend beyond December this year until end-2016 to continue to deter piracy and armed robbery.

“We are not yet in a position of saying, ‘Mission accomplished’,” said Mr Mariani.

“There is a lot of work that has to continue at sea but also at land because the root causes of piracy are on land.”

Rear admiral Guido Rando also called for continued caution.

“The end of mission will be when the Somali people and government take direct control of their safety and security,” he said.

“The situation has improved but we must not be complacent because pirates have not disappeared. There have been many successes but we know the organisation of piracy in Somalia is still intact.”

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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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2022:  Khan’s office attributes rise in Islamophobic abuse against the major to hostility stoked during Trump’s presidency

July 2025 During a golfing trip to Scotland, Trump calls Khan “a nasty person”

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Dec 2025 Trump suggests migrants got Khan elected, calls him a “horrible, vicious, disgusting mayor”

Retail gloom

Online grocer Ocado revealed retail sales fell 5.7 per cen in its first quarter as customers switched back to pre-pandemic shopping patterns.

It was a tough comparison from a year earlier, when the UK was in lockdown, but on a two-year basis its retail division, a joint venture with Marks&Spencer, rose 31.7 per cent over the quarter.

The group added that a 15 per cent drop in customer basket size offset an 11.6. per cent rise in the number of customer transactions.

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