BEIJING // North Korea fired a short-range missile off its east coast yesterday in defiance of international efforts to disarm the country following a second nuclear test this week, but analysts said the sabre rattling was simply a show intended to gain the attention of the United States.
North Korea warned that any new sanctions being discussed by the UN Security Council as punishment for Monday's nuclear test would be met with "self-defence measures".
"Should the UN Security Council attempt further provocations, our additional self-defence measures will be inevitable in response," the North's official Korean Central News Agency said.
Pyongyang called the five permanent members of the Security Council, including China and Russia which typically avoid censuring their ally, "hypocrites", citing that there had already been 2,053 atomic explosions and that "99.99 per cent" of previous nuclear tests were conducted by the same security council members seeking to censure it.
Even before the latest provocation, the US and South Korea had put their military forces on heightened alert after North Korea on Thursday annulled the Korean War armistice.
With tensions high on the peninsula, nearly 300 Chinese fishing ships operating in the Yellow Sea near Korea's border began leaving the area, possibly fearing a nautical clash between the two Koreas, South Korean reports said.
Jang Sung-min, author of the book Peace and War on the Korean Peninsula in the post-Kim Jong-Il Era, said North Korea's continued bellicose rhetoric and sabre rattling this week, was ultimately an expression of displeasure that the country was being ignored by the United States.
"North Korea felt ignored," he said. "Even after North Koreans carried out a nuclear test [in Oct 2006] and fired missiles, the US didn't budge."
After the second nuclear test, the US still did not recognise North Korea as a nuclear state and still did not show a sign of a direct negotiation with the North, he said.
"Now North Koreans believe it's time to show some real action," Mr Jang said.
In a hearing to the House of Representative foreign affairs committee on April 22, Hillary Clinton, the US secretary of state, prepared a 10-page report outlining major US foreign policy fronts.
They included Afghanistan, Pakistan, the Middle East and Iran. But not North Korea.
Pyongyang reacted to the "snub" by announcing it would carry out a second nuclear test this week, followed by the test-firing of several missiles and increased threats to South Korea and Japan.
Mr Jang sees all this as North Korea's "careful and detailed road map" to get Washington to engage with it directly.
As the US is still using the UN platform for dialogue, Pyongyang's usual method is to challenge the UN, while also making military threats to South Korea and Japan - two key US allies in East Asia.
"The message by North Korea to the US is clear. How can you still ignore us when we are becoming the most important and controversial agenda at the UN, not to mention a grave regional security threat to your Asian allies?" Mr Jang said.
As the crisis escalates on the Korean Peninsula, the world is now more than ever keenly awaiting action from China, North Korea's largest economic benefactor. After Monday's nuclear test, China signalled to Pyongyang "not to worsen the situation further," said South Korea's Yonhap News Agency. Apparently, North Korea did not listen.
"I don't know where in the China-North Korea communication failed. But North Korea seemed to turn a deaf ear to China's call," said Xie Tao, an expert on North Korea at Beijing Foreign Studies University.
What is worse, with tension between North and South escalating, experts believe there is a real chance for a naval clash in the Yellow Sea.
"All this will make the US sit up and take notice," Mr Jang said.
Late yesterday, South Korea announced that its foreign minister, Yu Myung-hwan, would fly to Washington next week for talks with Mrs Clinton. The agenda is North Korea.
slee@thenational.ae
In Full Flight: A Story of Africa and Atonement
John Heminway, Knopff
Three ways to limit your social media use
Clinical psychologist, Dr Saliha Afridi at The Lighthouse Arabia suggests three easy things you can do every day to cut back on the time you spend online.
1. Put the social media app in a folder on the second or third screen of your phone so it has to remain a conscious decision to open, rather than something your fingers gravitate towards without consideration.
2. Schedule a time to use social media instead of consistently throughout the day. I recommend setting aside certain times of the day or week when you upload pictures or share information.
3. Take a mental snapshot rather than a photo on your phone. Instead of sharing it with your social world, try to absorb the moment, connect with your feeling, experience the moment with all five of your senses. You will have a memory of that moment more vividly and for far longer than if you take a picture of it.
A State of Passion
Directors: Carol Mansour and Muna Khalidi
Stars: Dr Ghassan Abu-Sittah
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.”
THE BIO
Favourite book: ‘Purpose Driven Life’ by Rick Warren
Favourite travel destination: Switzerland
Hobbies: Travelling and following motivational speeches and speakers
Favourite place in UAE: Dubai Museum
Expo details
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh132,000 (Countryman)
What are the GCSE grade equivalents?
- Grade 9 = above an A*
- Grade 8 = between grades A* and A
- Grade 7 = grade A
- Grade 6 = just above a grade B
- Grade 5 = between grades B and C
- Grade 4 = grade C
- Grade 3 = between grades D and E
- Grade 2 = between grades E and F
- Grade 1 = between grades F and G
THE%20HOLDOVERS
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Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Honeymoonish
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
COMPANY%20PROFILE
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Essentials
The flights
Emirates, Etihad and Malaysia Airlines all fly direct from the UAE to Kuala Lumpur and on to Penang from about Dh2,300 return, including taxes.
Where to stay
In Kuala Lumpur, Element is a recently opened, futuristic hotel high up in a Norman Foster-designed skyscraper. Rooms cost from Dh400 per night, including taxes. Hotel Stripes, also in KL, is a great value design hotel, with an infinity rooftop pool. Rooms cost from Dh310, including taxes.
In Penang, Ren i Tang is a boutique b&b in what was once an ancient Chinese Medicine Hall in the centre of Little India. Rooms cost from Dh220, including taxes.
23 Love Lane in Penang is a luxury boutique heritage hotel in a converted mansion, with private tropical gardens. Rooms cost from Dh400, including taxes.
In Langkawi, Temple Tree is a unique architectural villa hotel consisting of antique houses from all across Malaysia. Rooms cost from Dh350, including taxes.
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.