S Korea suspends ships in N Korean waters



South Korean ships will be rerouted well clear of North Korean waters because of rising tensions between the two countries, a security official said today. The move came after Pyongyang said it couldn't ensure the safety of South Korean flights passing near its territory over the Sea of Japan, blaming a US-South Korean military exercise starting next Monday it says could spark a war. Korean Air and Asiana Airlines have already begun diverting away from North Korea, with some 200 flights set to be rerouted until the 12-day exercise ends.

Thirteen container ships plying between the southern port of Busan and north-east Russia will avoid their usual route close to North Korean waters and pass near Japanese waters, the security official said on condition of anonymity. The decision was reached at a meeting of representatives from the intelligence agency, navy and maritime police in Busan, according to the official. "They've shared the view that ships navigating the route near North Korean waters might also be exposed to danger following the North's threats," he said.

"Accordingly, South Korean ships navigating this route will take detours in line with their operational manual." The unification ministry released a statement urging North Korea to withdraw military threats against civilian air flights. "A military threat to the normal operations of civil aeroplanes not only violates international rules but is also an inhumane act that can never be justified," the statement said. It added that the government is taking speedy steps to secure the safety of civilian flights. No one knows "what military conflicts will be touched off by the reckless war exercises".

The warning was the latest in a series of threats which have raised tensions in recent weeks. "Actions such as these are distinctly unhelpful, unwelcome and unnecessary," said a US State Department spokesman, Gordon Duguid, criticising statements which are "threatening to peaceful aviation."

The North every year denounces the Key Resolve-Foal Eagle military exercise as a rehearsal for invasion, while the US-led United Nations Command (UNC) says it is purely defensive. But inter-Korean tensions are high this year after the North on Jan 30 announced it was scrapping all peace accords with the South. North Korea is also preparing to fire a rocket from a base overlooking the Sea of Japan for what it calls a satellite launch. Seoul and Washington say the real purpose is to test a missile that could theoretically reach Alaska.

The North is angry at South Korea's conservative leader Lee Myung-Bak, who scrapped his predecessors' policy of offering virtually unconditional aid to Pyongyang. Analysts say it may also be testing the resolve of the Obama administration and trying to strengthen its hand in future nuclear disarmament negotiations. Kim Yong-Hyun, Dongkuk University professor, told AFP the statement could be a sign that a missile launch is possible during the exercise, or could be an attempt to attract attention from Washington.

Bake Seung-Joo, of the Korea Institute for Defense Analyses, said the North would have to warn all flights, not just South Korean ones, if it intended a missile test soon. "This seems more like psychological warfare aimed at bolstering calls in South Korea opposing the US and the joint war drills," Baek told Yonhap news agency. The unification ministry said an average 33 flights a day, 14 of them South Korean, use a route to or from the United States or Russia which passes through North Korea's Flight Information Region.

The North receives 685 euros (548 dollars) for each jumbo jet which passes through the region. On Friday generals from the North and the UNC met at the border village of Panmunjom to discuss ways to ease tensions. A UNC spokesman could not say whether the aviation threat would be discussed. The exercise will this year involve a US aircraft carrier, 26,000 US troops and more than 30,000 South Korean soldiers.

* AFP and AP

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Ronaldo's record at Man Utd

Seasons 2003/04 - 2008/09

Appearances 230

Goals 115

The specs
 
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
Greatest of All Time
Starring: Vijay, Sneha, Prashanth, Prabhu Deva, Mohan
Director: Venkat Prabhu
Rating: 2/5
Abu Dhabi race card

5pm: Maiden (PA) | Dh80,000 | 1,600m
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Cases of coronavirus in the GCC as of March 15

Saudi Arabia – 103 infected, 0 dead, 1 recovered

UAE – 86 infected, 0 dead, 23 recovered

Bahrain – 210 infected, 0 dead, 44 recovered

Kuwait – 104 infected, 0 dead, 5 recovered

Qatar – 337 infected, 0 dead, 4 recovered

Oman – 19 infected, 0 dead, 9 recovered

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Rickie Fowler, Paul Casey, Adam Scott (4.26pm)

Dustin Johnson, Charl Schwartzel, Rory McIlroy (5.48pm)

TO A LAND UNKNOWN

Director: Mahdi Fleifel

Starring: Mahmoud Bakri, Aram Sabbah, Mohammad Alsurafa

Rating: 4.5/5

From Zero

Artist: Linkin Park

Label: Warner Records

Number of tracks: 11

Rating: 4/5

Wicked
Director: Jon M Chu
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Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon

Rating: 4/5

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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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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
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