• Customs officers at Dubai International Airport have foiled a man’s attempt to smuggle more than 5kg of marijuana into the emirate. All photos: Dubai Customs
    Customs officers at Dubai International Airport have foiled a man’s attempt to smuggle more than 5kg of marijuana into the emirate. All photos: Dubai Customs
  • Inspectors became suspicious of the traveller when he showed fear when his bags were sent for an X-ray.
    Inspectors became suspicious of the traveller when he showed fear when his bags were sent for an X-ray.
  • Customs officers searched the luggage and found the marijuana hidden inside six small bags that contained peanut paste.
    Customs officers searched the luggage and found the marijuana hidden inside six small bags that contained peanut paste.

Drug overdose deaths 'break records' in US and Canada


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Deaths by drug overdose in the US and Canada, particularly by recreational use of fentanyl, continue to “break records”, a UN report says.

“Preliminary estimates in the United States point to more than 107,000 drug overdose deaths in 2021, up from nearly 92,000 in 2020,” the UN Office of Drugs and Crime (UNODC) said in a report released on Monday.

Increased harmful levels of non-medical pharmaceutical drug use were reported in the coronavirus pandemic period, the report found. Today, more young people are using drugs compared with earlier generations, and women in particular are unable to find treatment.

“Women account for over 40 per cent of people using pharmaceutical drugs for non-medical purposes, and nearly one in two people using amphetamine-type stimulants, but only one in five in treatment for amphetamine-type stimulants is a woman,” Ghada Waly, executive director of the UN Office on Drugs and Crime, said.

In April, US President Joe Biden announced a new strategy designed to battle drugs use.

It includes expanding access to antidotes to prevent overdoses, treatment services, new efforts to disrupt transnational criminal organisations' financial networks and supply chains.

“It’s time we treat addiction like any other disease. And at the same time, we are disrupting drug traffickers’ financial networks, supply chains, and delivery routes, including on the internet,” Mr Biden said at the launch of the strategy.

Middle East still battling Captagon

Amphetamine misuse is not limited to North America. The Middle East is dealing with floods of the amphetamine known as Captagon from Lebanon and Syria, UNODC found.

Saudi Arabia seized the most amphetamines in 2020, at the equivalent of almost 30 tonnes, followed by the United Arab Emirates at roughly 12.5 tonnes.

Traffickers are known to employ unusual methods for smuggling, like placing the drugs inside a shipment of fava beans, or hiding them inside grapes, or tea bags.

Saudi Arabia banned Lebanese produce last year after announcing it had stopped 600 million pills and hundreds of kilograms of hashish from Lebanon from entering the kingdom in the six years before.

The 10-year civil war in Syria created a “fertile environment” for Captagon production, which, the UN said, has become “increasingly important to the illicit economy” in the country.

Last month, Jordan's military said it reported a sharp rise in attempts to smuggle drugs worth millions into the country from Syria, particularly Captagon pills.

“The Jordanian armed forces are confronting a drugs war on the [Syrian] border,” Col Mustafa Hiyari, head of military media, told reporters.

Armed groups profiting

In Africa's Sahel, armed groups associated with Al Qaeda and ISIS are exploiting the drug trade for gain, the UN report said.

The drug commonly trafficked there is cannabis, mainly produced in Morocco for consumption in Europe and the Middle East.

“There is mounting evidence that the Sahel route is being used for cannabis resin trafficking, and the Security Council’s Panel of Experts on Mali reports several instances in which large cannabis resin shipments transiting from Morocco to Libya have produced deadly clashes between groups in the region, potentially constituting ceasefire violations.”

Daily cannabis use, especially among young adults with mental health issues, has become prevalent, the report said.

“Cannabis legalisation in North America appears to have increased daily cannabis use, especially potent cannabis products and particularly among young adults.

  • The Captagon pills were hidden inside plastic lemons. Photo: Dubai Police
    The Captagon pills were hidden inside plastic lemons. Photo: Dubai Police
  • The shipment was then concealed in a consignment of real lemons. Photo: Dubai Police
    The shipment was then concealed in a consignment of real lemons. Photo: Dubai Police
  • The shipment had an estimated street value of $15.8 million. Photo: Dubai Police
    The shipment had an estimated street value of $15.8 million. Photo: Dubai Police
  • Dubai Customs at the Hatta border foiled an attempt to smuggle 14.5kg of Captagon into the emirate. Photo: Dubai Customs
    Dubai Customs at the Hatta border foiled an attempt to smuggle 14.5kg of Captagon into the emirate. Photo: Dubai Customs

“Associated increases in people with psychiatric disorders, suicides and hospitalisations have also been reported. Legalisation has also increased tax revenue and generally reduced arrest rates for cannabis possession.

Cocaine manufacture hit a record in 2020 — up almost 11 per cent from the year before — as gaps continue to appear in the availability of drug treatments for women, the report said.

“Cocaine seizures also increased, despite the Covid-19 pandemic, to a record 1,424 tonnes in 2020,” the UN found.

While North America and Europe are the main markets for the drug, more cocaine is being trafficked to Africa and Asia.

COMPANY PROFILE
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Based: Muscat

Launch year: 2018

Number of employees: 40

Sector: Online food delivery

Funding: Raised $3.2m since inception 

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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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Updated: June 28, 2022, 2:13 PM