US President Joe Biden. AFP
US President Joe Biden. AFP
US President Joe Biden. AFP
US President Joe Biden. AFP

Biden and King Salman discuss Houthi attacks and Iran


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US President Joe Biden and Saudi Arabia's King Salman on Wednesday talked about regional developments and the Opec+ agreement, both countries' governments said.

The leaders said their countries were committed to supporting each other's security amid ongoing attacks by Iran-backed Houthi rebels in Yemen, just south from Saudi Arabia.

Mr Biden "underscored the US commitment to support Saudi Arabia in the defence of its people and territory from these attacks, and full support for UN-led efforts to end the war in Yemen", the White House said.

The US and Saudi Arabia on Monday held talks about Houthi actions in Yemen after the rebels launched rockets against Saudi Arabia and the UAE. The US condemned the attacks.

"The President noted his commitment to ensuring that Iran can never obtain a nuclear weapon and briefed the King on ongoing multilateral talks to re-establish constraints on Iran’s nuclear programme," the White House said.

An eighth round of global diplomatic talks on an Iranian nuclear deal has started this week.

"The two leaders discussed matters pertaining to the Middle East region and Europe, and agreed that their teams would remain closely co-ordinated over the coming weeks and months."

The US and Saudi Arabia have intercepted an increasing number of Houthi missiles launched from Yemen.

King Salman expressed support for a "comprehensive political resolution in Yemen", the Saudi Press Agency reported.

The leaders also discussed maintaining global energy operations, after an Opec+ decision to increase oil output in March, with higher global demand.

King Salman said he "stressed the importance of maintaining balance and stability in the oil markets, highlighting the role of the historic Opec+ agreement in this regard, and the importance of maintaining the agreement", Spa reported.

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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Dhadak

Director: Shashank Khaitan

Starring: Janhvi Kapoor, Ishaan Khattar, Ashutosh Rana

Stars: 3

Updated: February 09, 2022, 10:37 PM