A Sudanese girl with British citizenship waves goodbye to loved ones from a bus before being processed for evacuation. Reuters
A Sudanese girl with British citizenship waves goodbye to loved ones from a bus before being processed for evacuation. Reuters
A Sudanese girl with British citizenship waves goodbye to loved ones from a bus before being processed for evacuation. Reuters
A Sudanese girl with British citizenship waves goodbye to loved ones from a bus before being processed for evacuation. Reuters

Sudan facing ‘humanitarian catastrophe’, says UN chief


Adla Massoud
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Follow the latest Sudan updates here

UN Secretary General Antonio Guterres on Wednesday called on the international community to support Sudan as the African nation faces a “humanitarian catastrophe”.

“Khartoum is in turmoil; Darfur is burning once again,” Mr Guterres told reporters in Nairobi.

“The Sudanese are facing a humanitarian catastrophe. Hospitals destroyed. Humanitarian warehouses looted. Millions facing food insecurity," he said. “We need secure and immediate access to distribute aid to people who need it most."

He urged all parties to put the “interests of the Sudanese people first” and for the fighting to stop before the conflict “explodes into an all-out war that could affect the region for years to come”.

Mr Guterres is in Nairobi for a two-day official visit to hold talks with Kenya's President William Ruto on the security and humanitarian situation in Sudan. He echoed Mr Ruto’s calls for de-escalation, a return to the negotiating table and an agreement on a lasting ceasefire.

“It's important that the whole of the international community comes together and tell clearly the two generals but also all those that eventually are taking profit of this, that the present situation is totally unacceptable,” he said, referring to Sudanese military leader Gen Abdel Fattah Al Burhan and leader of the paramilitary Rapid Support Forces Gen Mohamed Dagalo.

“A lasting ceasefire needs to take place. Unfortunately, we are not yet there.”

On Tuesday, the foreign ministry of neighbouring South Sudan announced that Gen Burhan and Gen Daglo "have agreed in principle for a seven-day truce from May 4 to 11".

Earlier truces between the RSF and the army, whose internal power struggle escalated into open confrontation in mid-April, have varied in duration from 24 to 72 hours. However, none of them have been adhered to completely.

Egyptian President Abdel Fattah al-Sisi warned on Tuesday that the fighting in neighbouring Sudan was affecting "the entire region".

The Saudi-headquartered Organisation of Islamic Cooperation on Wednesday held an emergency meeting to discuss the situation in Sudan.

The conflict has created a humanitarian crisis, with about 100,000 people forced to flee — often with little food or water — to neighbouring countries, according to the UN.

UN aid chief Martin Griffiths arrived in Port Sudan on the Red Sea coast early on Wednesday on an urgent mission to find ways to bring relief to the millions of Sudanese affected by the conflict.

He said he was seeking assurances from the warring factions to safeguard the delivery of humanitarian assistance hours after air strikes in Khartoum undermined a new ceasefire.

Mr Griffiths said the UN had a plan for delivering the aid and supplies needed to address the dire situation but noted that “we still require agreements and arrangements to allow for movement of staff and supplies”.

The aid chief added that he had been told by the World Food Programme that six of their lorries travelling to Darfur were looted en route despite assurances from authorities of safety and security.

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Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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.”

First Person
Richard Flanagan
Chatto & Windus 

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How Tesla’s price correction has hit fund managers

Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.

It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.

The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.

Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.

Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.

He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.

AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”

A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.

Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.

Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.

Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.

By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.

Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.

In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”

Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.

She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.

Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.

Analysis

Members of Syria's Alawite minority community face threat in their heartland after one of the deadliest days in country’s recent history. Read more

Sole survivors
  • Cecelia Crocker was on board Northwest Airlines Flight 255 in 1987 when it crashed in Detroit, killing 154 people, including her parents and brother. The plane had hit a light pole on take off
  • George Lamson Jr, from Minnesota, was on a Galaxy Airlines flight that crashed in Reno in 1985, killing 68 people. His entire seat was launched out of the plane
  • Bahia Bakari, then 12, survived when a Yemenia Airways flight crashed near the Comoros in 2009, killing 152. She was found clinging to wreckage after floating in the ocean for 13 hours.
  • Jim Polehinke was the co-pilot and sole survivor of a 2006 Comair flight that crashed in Lexington, Kentucky, killing 49.
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The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


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THE BIO

Favourite place to go to in the UAE: The desert sand dunes, just after some rain

Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude

Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE

Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally

Favourite subjects in school: Mathematics and science

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Updated: May 03, 2023, 3:42 PM