Somalia on the edge


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As the fight against Somali piracy intensifies, warships from Italy, Greece, Turkey, India, Denmark, Saudi Arabia, France, Russia, Britain, Malaysia and the United States, may soon be joined by naval forces from China. A Chinese merchant ship became the fourth vessel to be attacked in two days. "The crew of the China Communications Construction Co. ship fought pirates for five hours before coalition helicopters chased them off, Noel Choong, head of the Kuala Lumpur-based International Maritime Bureau, said by phone today. He said a Turkish cargo ship, a Malaysian tug, and a yacht were seized off Somalia yesterday, the same day the United Nations Security Council backed military action against piracy," Bloomberg reported. Naval operations have thus far been of limited success since the asymetry between a warship and a fibreglass skiff is one that counts to the pirates' advantage. As an Italian naval officer told The New York Times, "going after them in a 485-foot-long destroyer, bristling with surface-to-air missiles and torpedoes, was like 'going after someone on a bicycle with a truck.' "But the pirates - true to form - remain unfazed. " 'They can't stop us,' said Jama Ali, one of the pirates aboard a Ukrainian freighter packed with weapons that was hijacked in September and was still being held. "He explained how he and his men hid out on a rock near the narrow mouth of the Red Sea and waited for the big grey ships with the guns to pass before pouncing on slow-moving tankers. Even if foreign navies nab some members of his crew, Mr Jama said, he is not worried. He said his men would probably get no more punishment than a free ride back to the beach, which has happened several times. " 'We know international law,' Mr Jama said." In an effort to tilt the military equation in favour of the anti-piracy forces, the Security Council on Tuesday authorised states to use land-based operations in Somalia as part of the fight against piracy. The Washington Post reported: "The vote represented a major escalation by the world's big powers in the fight against the pirates, who have disrupted commerce along one of the world's most active sea routes and acquired tens of millions of dollars in ransom... "The US-drafted resolution authorises nations to 'use all necessary measures that are appropriate in Somalia' in pursuit of pirates, as long as they are approved by the country's Transitional Federal Government [TFG]. The resolution also urges states to deploy naval vessels and military aircraft to carry out the operations, and it calls for the creation of a regional office to coordinate the international effort." McClatchy Newspapers said: "Somalia's long East African coastline is a lawless stretch of empty beaches and mountain hollows, and experts think that foreign forces lack the military intelligence to carry out well-targeted land attacks. They warn that civilian casualties would stoke anti-Western sentiment in the overwhelmingly Muslim nation, where powerful Islamist militias are threatening to topple an internationally backed - but desperately weak - interim government. "It's unlikely that American forces would be involved, given the lingering memories of 1993, when a US Black Hawk helicopter was shot down over the Somali capital, Mogadishu, resulting in the deaths of 18 servicemen. The current struggles of a small African Union peacekeeping mission also raise doubts that any country would be willing to send ground forces into Somalia. " 'Our intelligence is pretty shaky inside Somalia on a whole bunch of things,' said Roger Middleton, a Somalia researcher at Chatham House, a British-based research center. 'There's a real danger of arresting fishermen.' "One of the Bush administration's last foreign-policy initiatives immediately drew scepticism from Defense Secretary Robert Gates, who said over the weekend that the United States lacked the military intelligence to carry out a land-based operation. Officials in other countries have suggested that land pursuits could violate international law." Voice of America spoke to Ambassador David Shinn who doubts the effectiveness of the Security Council resolution. He once served as the State Department Deputy Task Force Director for Somalia and also served as an ambassador to Ethiopia. "The problem with piracy," he said, "is you can not control it until you have a functional government in Somalia that controls the country and the coast line [The TFG does not]. So, the idea of trying to deal with the problem with a large naval presence in the Indian Ocean or permitting members of the UN to go on land in hot pursuit of pirates may have some impact on the margins but will not change the ultimate challenge - that will remain." Ethiopia is expected to soon withdraw its troops from the Somali capital, Mogadishu. This could mean a return of the Islamic-led government that preceded the TFG. According to Ambassador Shinn, "The Islamists will tell you when they were last in power in 2006 that they did clamp down on piracy, and will do so again. But it appears that virtually everyone in authority in Somalia is getting a lot of money from piracy ransom money, estimated at being 120 million dollars last year, some of which even goes to members of families that are associated with the TFG. When you have this much money circulating, there is a very big temptation to let it continue to flow. So, it's not clear if the Islamists would clamp down on it." In an indication of the increasing instability of the TFG, The New York Times reported: "The president of Somalia announced Sunday that he was unilaterally firing the prime minister, throwing Somalia's beleaguered government, and the nation itself, into further disarray. "President Abdullahi Yusuf Ahmed, a warlord in his 70s who has been steadily marginalised for several months because he is widely seen as an obstacle to peace, said he was dismissing Prime Minister Nur Hassan Hussein, a former aid official, because the government had 'failed to accomplish its duties.' "But it is not even clear that the president has the authority to do this." VOA later reported that Somalia's parliament gave Prime Minister Nur Hassan Hussein a strong vote of confidence. "There was no immediate reaction from President Abdullahi Yusuf, who told VOA Somali service on Sunday that he would abide by parliament's decision." On Tuesday, The New York Times reported that Mr Yusuf had decided to disregard the rebuff from parliament and went ahead and unilaterally appointed his own prime minister. "The situation leaves Somalia with a huge crack in its beleaguered government, insurgents in control of much of the country, rising prospects of famine - and two prime ministers. "Somalia's transitional government has never been unified, powerful, popular or effective. But the United Nations and foreign countries have supported it with millions of dollars because it has been seen as the least bad option in a war-torn country that has not had a functioning central government for nearly 18 years. " 'Disagreement seems to be part of our culture,' said Abdulkadir Hussein, a shopkeeper in Mogadishu. 'Our people like conflict, rather than peace and negotiations.' "Another problem is that the Islamist insurgents who recently seized control of much of the country are also sharply divided. Many analysts predict that if the transitional government collapses - which it could do soon - the Islamists will fight it out among themselves." Meanwhile, UN Secretary General Ban Ki-moon said on Wednesday that now is not the time to send United Nations peacekeeping troops to Somalia. "The danger of anarchy in Somalia was 'clear and present', Mr Ban said, and action must be taken," the BBC reported. "But he said conditions were not in place for sending peacekeepers. " 'If there is no peace to keep, peacekeeping operations are not supposed to be there,' the UN chief said. "Instead, he said, more efforts were needed on an inter-Somali peace process and to bolster the current African Union force." The latest list compiled by defence analysts for Jane's Country Risk identified Somalia as the most unstable country in the world.

pwoodward@thenational.ae

How do Sim card scams work?

Sim swap frauds are a form of identity theft.

They involve criminals conning mobile phone operators into issuing them with replacement Sim cards by claiming to be the victim, often pretending their phone has been lost or stolen in order to secure a new Sim.

They use the victim's personal details - obtained through criminal methods - to convince such companies of their identity.

The criminal can then access any online service that requires security codes to be sent to a user's mobile phone, such as banking services.

Five hymns the crowds can join in

Papal Mass will begin at 10.30am at the Zayed Sports City Stadium on Tuesday

Some 17 hymns will be sung by a 120-strong UAE choir

Five hymns will be rehearsed with crowds on Tuesday morning before the Pope arrives at stadium

‘Christ be our Light’ as the entrance song

‘All that I am’ for the offertory or during the symbolic offering of gifts at the altar

‘Make me a Channel of your Peace’ and ‘Soul of my Saviour’ for the communion

‘Tell out my Soul’ as the final hymn after the blessings from the Pope

The choir will also sing the hymn ‘Legions of Heaven’ in Arabic as ‘Assakiroo Sama’

There are 15 Arabic speakers from Syria, Lebanon and Jordan in the choir that comprises residents from the Philippines, India, France, Italy, America, Netherlands, Armenia and Indonesia

The choir will be accompanied by a brass ensemble and an organ

They will practice for the first time at the stadium on the eve of the public mass on Monday evening 

Keane on …

Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”

Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”

Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”

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.”

If you go

The flights
There are various ways of getting to the southern Serengeti in Tanzania from the UAE. The exact route and airstrip depends on your overall trip itinerary and which camp you’re staying at. 
Flydubai flies direct from Dubai to Kilimanjaro International Airport from Dh1,350 return, including taxes; this can be followed by a short flight from Kilimanjaro to the Serengeti with Coastal Aviation from about US$700 (Dh2,500) return, including taxes. Kenya Airways, Emirates and Etihad offer flights via Nairobi or Dar es Salaam.   

First Person
Richard Flanagan
Chatto & Windus 

Company profile

Date started: 2015

Founder: John Tsioris and Ioanna Angelidaki

Based: Dubai

Sector: Online grocery delivery

Staff: 200

Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends

Results

6pm: Dubai Trophy – Conditions (TB) $100,000 (Turf) 1,200m 

Winner: Silent Speech, William Buick (jockey), Charlie Appleby
(trainer) 

6.35pm: Jumeirah Derby Trial – Conditions (TB) $60,000 (T)
1,800m 

Winner: Island Falcon, Frankie Dettori, Saeed bin Suroor 

7.10pm: UAE 2000 Guineas Trial – Conditions (TB) $60,000 (Dirt)
1,400m 

Winner: Rawy, Mickael Barzalona, Salem bin Ghadayer 

7.45pm: Al Rashidiya – Group 2 (TB) $180,000 (T) 1,800m 

Winner: Desert Fire, Hector Crouch, Saeed bin Suroor 

8.20pm: Al Fahidi Fort – Group 2 (TB) $180,000 (T) 1,400m 

Winner: Naval Crown, William Buick, Charlie Appleby 

8.55pm: Dubawi Stakes – Group 3 (TB) $150,000 (D) 1,200m 

Winner: Al Tariq, Pat Dobbs, Doug Watsons 

9.30pm: Aliyah – Rated Conditions (TB) $80,000 (D) 2,000m 

Winner: Dubai Icon, Patrick Cosgrave, Saeed bin Suroor  

Defence review at a glance

• Increase defence spending to 2.5% of GDP by 2027 but given “turbulent times it may be necessary to go faster”

• Prioritise a shift towards working with AI and autonomous systems

• Invest in the resilience of military space systems.

• Number of active reserves should be increased by 20%

• More F-35 fighter jets required in the next decade

• New “hybrid Navy” with AUKUS submarines and autonomous vessels