DUBAI // Somali pirates have threatened to start killing hostages aboard the Dubai ship MT Royal Grace, sparking desperate appeals from relatives for government intervention before tomorrow’s deadline.
The empty chemical tanker with a crew of 17 Indians, three Nigerians, a Pakistani and a Bangladeshi was hijacked in March off the coast of Oman after it set sail for Nigeria from Sharjah.
More than 20 relatives gathered this week at the shipping ministry office in New Delhi, India, demanding government action.
“We got a call and we were clearly told that they were giving us until November 30 or that was the end,” said Sharmishta, a relative of a hostage. “They told us to ask our governments or they will start on the men, one by one.
“Now only governments can help us because none of us can ever pay the ransom and the ship’s owner told us they don’t have the money.
“Their lives are dependent on someone talking to the pirates. We don’t have any contacts in the UAE or Nigeria, so we are appealing through the media.”
The pirates want US$2 million (Dh7.3m) to free the crew and ship.
A Nigerian sailor has already died because of a lack of medication, the relatives said.
The vessel is part of the Dubai company Oyster Cargo and Shipping, which is owned by a Nigerian businessman.
“The ministers told us that it will be resolved and we should be patient,” said Sushil Kumar, whose younger brother, Saurav, 24, is being held captive on his first voyage.
“Time is running out but we have been asked to wait a week. When I spoke to my brother, he said we must get them out because anything could happen to them now.
“Somebody must help; we have tried everything with our government. If this is not solved, all of them will be gone.”
The Indian shipping minister G?K Vasan said efforts were continuing for the release of the crew. But officials also restated the government’s position that they could not be involved in ransom negotiations.
“Governments have traditionally avoided paying ransoms on the grounds that, if they do, all their citizens will be at risk from kidnappers,” said Jon Lee, an analyst for Compass Risk Management, which has been involved in negotiations to free crews.
“What governments can do is to use their contacts to put pressure on the host nation to resolve the situation and, in some cases, use their local contacts to help families, or those acting for them, to open a dialogue with the kidnappers.”
Company representatives said negotiations were ongoing but did not provide details.
There are nine ships and 154 seamen being held by pirates, according to International Maritime Bureau statistics.
Another Dubai-owned ship, the MV Iceberg 1, with 23 crew, is the longest held by Somali pirates. They seized it 31 months ago.
Mr Lee said the ability of owners to negotiate with pirates was critical.
“Some will have this covered by insurance. Many don’t have the cover and thus access to specialists to advise,” he said.
“Insurance will also give access to the necessary funds to pay the extortionate ransom demand.”
During a shipping conference in Dubai this week, piracy experts appealed for coordinated action between governments. They urged the early release of hostages so they are not subjected to the torture, brutality and depravation that Somali pirates can inflict.
“Let us not forget these men,” said Pottendal Mukundan, the director of the International Maritime Bureau. “We should work to get them back to their families.
"Just because the victims and the ships are out of sight, it does not mean that we should not do our best to set them free."
rtalwar@thenational.ae
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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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