Taliban fighters stand guard at the site of an explosion in front of a Sikh temple, in Kabul on Saturday. EPA
Taliban fighters stand guard at the site of an explosion in front of a Sikh temple, in Kabul on Saturday. EPA
Taliban fighters stand guard at the site of an explosion in front of a Sikh temple, in Kabul on Saturday. EPA
Taliban fighters stand guard at the site of an explosion in front of a Sikh temple, in Kabul on Saturday. EPA

ISIS says it carried out Sikh temple attack in Kabul


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The extremist group ISIS has claimed responsibility for an attack on a Sikh temple in Afghanistan's capital on Saturday that killed one community member and a Taliban fighter.

In a post on Telegram, the Afghan branch of ISIS said the attack was in response to insults against the Prophet Mohammed — an apparent reference to remarks by officials of India's ruling party that have been condemned by many Muslim-majority countries.

The group said a suicide attacker stormed the temple on Saturday morning armed with a machine gun and hand grenades after killing its guard. It said other militants fought for more than three hours with Taliban fighters, who tried to intervene to protect the temple, attacking them with four explosive devices and a car bomb.

Taliban officials said one of their fighters and a Sikh worshipper were killed, while seven other people were injured.

The attack followed a visit last week by an Indian delegation to Kabul to discuss the distribution of humanitarian aid from India to Afghanistan.

Afghan and Indian media reports said the delegation discussed the possibility of reopening the Indian embassy, which was closed after the hardline Islamist militants seized power in August last year.

The number of bombings across Afghanistan has dropped since then, but several attacks — many of which have been against minority communities — have rocked the country in recent months, including several claimed by ISIS.

The UN's mission to Afghanistan called for protection for minorities in Afghanistan after Saturday's attack.

Indian Prime Minister Narendra Modi said on Twitter that he was "shocked" by the attack, while neighbouring Pakistan said it was "seriously concerned at the recent spate of terrorist attacks on places of worship in Afghanistan".

Sikhs are a tiny religious minority in largely Muslim Afghanistan, comprising about 300 families before the country fell to the Taliban. Many have since left, according to members of the community.

Most of those who remain are traders involved in selling herbal medicines and electronic goods brought from India.

In recent months, many impoverished Sikhs, including women and children, have taken refuge in the complex that was attacked on Saturday.

Sikhs in Afghanistan have been repeatedly attacked over the years. At least 25 people were killed in March 2020 when gunmen stormed another Sikh temple in Kabul in an attack that was also claimed by ISIS.

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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 19, 2022, 7:40 AM