REFILE - CORRECTING DATE OF PICTURE TAKEN

A victim of a car suicide attack in Orakzai tribal region lies on a hospital bed after arriving in Peshawar October 11, 2008. Angry Pakistani tribesmen traded fire with Taliban militants and demolished their houses in a northwestern tribal region after a car suicide attack killed at least 30 people, residents said on Saturday. REUTERS/Ali Imam (PAKISTAN) *** Local Caption ***  ISL01_PAKISTAN-VIOL_1011_11.JPG
A victim of a suicide attack lies in a hospital bed in Peshawar yesterday.

Militants' threats fail to dissuade tribesmen



ISLAMABAD // It has been hailed as Pakistan's version of the "Sunni Awakening" in Iraq, but Pakistani tribesmen who have taken up arms against the Taliban and al Qa'eda are themselves facing a bloody wake-up call.

A string of militant attacks, apparently aimed at scaring off pro-government tribal elders and politicians who have helped to drum up anti-extremist militias along the Afghan border, culminated in a suicide blast at a tribal gathering on Friday. A bomber detonated a car packed with explosives into a crowd of hundreds of people meeting in a field for a jirga (tribal meeting) in the remote north-western tribal district of Orakzai, killing 40 people and injuring scores.

A day earlier, Taliban militants kidnapped four elders after they attended a similar meeting in the Bajaur tribal region about 100 kilometres farther north. The attacks represent a serious threat to the fledgling movement of lashkars, or tribal armies, which are heavily backed by government money and facing a seemingly implacable enemy. Tribal elders say they are determined to drive militants out of the area in spite of the violence aimed at them.

"Our decision to launch a lashkar against the militants is final," said Din Azhar, an elder of the Alikhel tribe in Orakzai, which until recently has been one of the most peaceful of the tribal areas. "Before this attack, we found four tribesmen had links with the militants and we have now destroyed two of their centres. They can target our jirgas, but we are not scared of such activities." Another elder from Orakzai said the attacks would spur them on.

"At this time we are busy in burying the dead," said Gul Karim, the elder. "But after the burial and the mourning period we will call another jirga and then we will launch a fresh operation against the militants." In Iraq, US forces and the government in Baghdad have seen major gains since 2006 after persuading or, more often, bribing Sunni tribal leaders to fight against the al Qa'eda movement in the country.

Pakistan's new government, which successfully forced Pervez Musharraf to resign as president in August, has tried to emulate the Iraqi strategy in recent months with the inhabitants of the seven semiautonomous tribal areas bordering Afghanistan. Despite its reputation in the West as an anti-US hinterland that sheltered militants who fled Afghanistan after the fall of the Taliban in 2001, the tribal belt has seen growing discontent over the militants' tactics.

From the executions of more than 300 government-supporting elders by the Taliban, to the deaths of hundreds of civilians in suicide attacks and roadside blasts, the bloodshed has galvanised some of the tribes into taking up their Kalashnikvos. There is also anger over the hardliners' moral vigilante squads, reminiscent of the 1996-2001 Taliban regime in Afghanistan. Residents tell stories of women being dragged from cars at makeshift checkpoints if they are not wearing all-covering burqas, after which husbands have been forced to pay a "tax". In other cases women have been beaten, according to local media reports.

The first tribesmen to create their own militias were in Bajaur, where the Pakistani military launched a major operation in August to destroy what it described as a hub of al Qa'eda and Taliban militants. In the past week, new tribal forces have burnt down suspected militants' houses in the Khyber tribal region, which adjoins the north-western city of Peshawar, and in the relatively untroubled Mohmand tribal district.

The government has hailed their actions and also made public pledges that the attacks, like the suicide bombing in Orakzai, will not have any effect. "Such cowardly attacks cannot shake the government's determination. The nation is united against terrorism," said Rehman Malik, the acting interior minister, after Friday's suicide bombing. The extremists, however, have fought back in recent weeks, apparently in the belief that they can indeed shake the government.

This month, a suicide bomber came just metres away from killing Asfandyar Wali Khan, the chief of the Awami National Party, a secular group that replaced hardliners in government in North West Frontier Province in the February elections and has sworn to take on the Taliban. Given that the campaign is backed by the pro-US government of Asif Ali Zardari, the new president, there has been speculation about just how committed the tribesmen are.

In addition to their earlier hostility to Pakistani military operations in the border zone - troops entered the region for the first time in Pakistan's history in 2002 - the tribes of the area have a long history of shifting allegiances, especially where money is concerned. The elders themselves point to the fact that they have seen off opponents ranging from Alexander the Great to the British. Nevertheless, elders in Bajaur would only speak on condition of anonymity for fear of reprisals by the militants.

"Even though they have beheaded four of our colleagues and are targeting tribal elders, we will continue our struggle and we will never quit our operation against the militants," said a member of a jirga in troubled Bajaur. * The National

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Other ways to buy used products in the UAE

UAE insurance firm Al Wathba National Insurance Company (AWNIC) last year launched an e-commerce website with a facility enabling users to buy car wrecks.

Bidders and potential buyers register on the online salvage car auction portal to view vehicles, review condition reports, or arrange physical surveys, and then start bidding for motors they plan to restore or harvest for parts.

Physical salvage car auctions are a common method for insurers around the world to move on heavily damaged vehicles, but AWNIC is one of the few UAE insurers to offer such services online.

For cars and less sizeable items such as bicycles and furniture, Dubizzle is arguably the best-known marketplace for pre-loved.

Founded in 2005, in recent years it has been joined by a plethora of Facebook community pages for shifting used goods, including Abu Dhabi Marketplace, Flea Market UAE and Arabian Ranches Souq Market while sites such as The Luxury Closet and Riot deal largely in second-hand fashion.

At the high-end of the pre-used spectrum, resellers such as Timepiece360.ae, WatchBox Middle East and Watches Market Dubai deal in authenticated second-hand luxury timepieces from brands such as Rolex, Hublot and Tag Heuer, with a warranty.

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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There is no fund manager deciding which stocks and other assets to invest in, instead they passively track their chosen index, country, region or commodity, regardless of whether it goes up or down.

The first ETF was launched as recently as 1993, but the sector boasted $5.78 billion in assets under management at the end of September as inflows hit record highs, according to the latest figures from ETFGI, a leading independent research and consultancy firm.

There are thousands to choose from, with the five largest providers BlackRock’s iShares, Vanguard, State Street Global Advisers, Deutsche Bank X-trackers and Invesco PowerShares.

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