The UK Royal Navy frigate HMS Northumberland leaves Mombasa to escort food aid to Somalia.
The UK Royal Navy frigate HMS Northumberland leaves Mombasa to escort food aid to Somalia.

Shipowners arm themselves to ward off pirates



Major shipping and oil companies are arming staff and employing professional security firms to combat Somali piracy in the Gulf of Aden. Despite EU and Nato patrols, several firms are seeking protection after more than 100 raids this year, including the capture of the Saudi Arabian tanker the Sirius Star. The plans were discussed yesterday at the Maritime Piracy Seminar at the Seatrade Exhibition in Dubai. Prior to the meeting, Mohammad Souri, the chairman of the National Iranian Tanker Company, said the presence of professional, armed security on board his vessels was key to combating the piracy threat. He said that five of his ships had been pursued by pirates.

"The industry is grateful for the support the EU has offered. If they can provide sufficient protection then the situation will be solved but we are negotiating terms to provide our own security on board. "We have placed two of our ships at either end of the Gulf, at Djibouti and Salalah, to protect our ships. The intention is that armed crews from these base ships will transfer to ships making the passage to protect them from pirates. The teams will also train the crew in anti-piracy measures."

Private security firms in Britain have offered professional teams armed with guns, flares and tear gas. Saleh al Shamekh, the president of the oil and gas section of the National Shipping Company of Saudi Arabia, said his organisation was investigating all available options to counter the threat of piracy. "Several of our ships have come under attack off the Somali coast. In one case a vessel only escaped with the aid of an Indian navy warship. We have told our captains to increase speeds and stay further away from the coast.

"Increasingly we are having to divert ships around the Cape of Good Hope but this is a more expensive, much longer journey. We need to offer our crews protection." Jørn Hinge, the chief operating officer of the United Arab Shipping Company, the largest ocean carrier of container cargo in the Middle East, said the Gulf of Aden was volatile and the odds remained in the pirates' favour. "There is total lawlessness in Somalia. The chances of pirates getting caught are small and the rewards of ransoms are huge so the threat is not going to disappear overnight. Two of our container ships have been attacked," Mr Hinge said.

"We have ordered our captains not to listen to any threats or try to remonstrate with the pirates. They just need to try to outrun them because if they get captured they will be in even more danger. "The pirates have access to sophisticated weapons. One of our tankers was hit by a rocket-propelled grenade." However, Peter Swift, the managing director of the International Association of Independent Tanker Owners, said the carrying of arms was generally prohibited by international and national laws.

International shipping laws prevented the possession of handguns on deck and many ports did not allow entry to vessels with weapons on board. "The community is strongly against private militias as it's likely to promote more violence." The carrying of arms was also likely to invalidate most insurance policies, he said. Mr Swift said his association believed existing piracy prevention forces in the region - including Nato, Indian, Russian and EU forces - would be more effective if co-ordinated from a single centralised command.

More than 85,000 vessels pass through the Gulf of Aden every year and a total of 16 vessels have been captured for ransom by pirates. In response to the capture of the Sirius Star, a supertanker carrying 90 million gallons of oil, the EU deployed a force of six warships supported by three aircraft to protect merchant vessels. The UK, France, Germany, Greece and Spain have provided vessels. In addition the UN has designated a shipping channel running close to the Yemen coast to reduce the risk of shipping being attacked by pirates.

In June the UN Security Council passed a resolution which for the first time allowed foreign navies to pursue fleeing pirates into Somali waters. Earlier, international law prevented naval forces from venturing closer than 320km offshore. However, these measures have failed to curtail piracy and in recent months the number of attacks has increased dramatically. The area is now the world's most dangerous shipping lane, replacing the Straits of Malacca, according to the International Maritime Bureau. tbrooks@thenational.ae

'Gehraiyaan'
Director:Shakun Batra

Stars:Deepika Padukone, Siddhant Chaturvedi, Ananya Panday, Dhairya Karwa

Rating: 4/5

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.”

match details

Wales v Hungary

Cardiff City Stadium, kick-off 11.45pm

ICC Women's T20 World Cup Asia Qualifier 2025, Thailand

UAE fixtures
May 9, v Malaysia
May 10, v Qatar
May 13, v Malaysia
May 15, v Qatar
May 18 and 19, semi-finals
May 20, final

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

The specs: 2018 Nissan Patrol Nismo

Price: base / as tested: Dh382,000

Engine: 5.6-litre V8

Gearbox: Seven-speed automatic

Power: 428hp @ 5,800rpm

Torque: 560Nm @ 3,600rpm

Fuel economy, combined: 12.7L / 100km

Why seagrass matters
  • Carbon sink: Seagrass sequesters carbon up to 35X faster than tropical rainforests
  • Marine nursery: Crucial habitat for juvenile fish, crustations, and invertebrates
  • Biodiversity: Support species like sea turtles, dugongs, and seabirds
  • Coastal protection: Reduce erosion and improve water quality
Dust and sand storms compared

Sand storm

  • Particle size: Larger, heavier sand grains
  • Visibility: Often dramatic with thick "walls" of sand
  • Duration: Short-lived, typically localised
  • Travel distance: Limited 
  • Source: Open desert areas with strong winds

Dust storm

  • Particle size: Much finer, lightweight particles
  • Visibility: Hazy skies but less intense
  • Duration: Can linger for days
  • Travel distance: Long-range, up to thousands of kilometres
  • Source: Can be carried from distant regions
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The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

Skewed figures

In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458. 

Batti Gul Meter Chalu

Producers: KRTI Productions, T-Series
Director: Sree Narayan Singh
Cast: Shahid Kapoor, Shraddha Kapoor, Divyenndu Sharma, Yami Gautam
Rating: 2/5

The specs

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Price: From Dh825,900

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