Several dead after gunmen attack Kabul hotel


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Gunmen attacked Kabul's Intercontinental Hotel on Saturday, seizing hostages and exchanging gunfire with security forces as the building in the Afghan capital caught fire and residents and staff fled.

Hotel manager Ahmad Haris Nayab, who escaped unhurt, said the attackers had got into the main part of the hotel through a kitchen and people tried to get out amid bursts of gunfire.

Several people had been killed and at least six wounded in the raid, which came days after a US embassy warning of possible attacks on hotels in Kabul, Nasrat Rahimi, an interior ministry spokesman, said. However, officials gave no other details on casualty numbers.

There was no immediate claim of responsibility for the latest in a long series of attacks which underlined the city's precarious situation and the ability of militants to strike blows aimed at undermining confidence in the Western-backed government.

Officials said there were as many as four attackers and at least two of them had been killed as Afghan Special Forces cleared the first floor and moved up the building, battling the raiders, who appeared to have a large supply of hand grenades.

Hours after the attack began, firing appeared to ease as security forces settled in, waiting for dawn.

According to one witness, who did not want to be named, the attackers took some hotel staff and guests hostage. He said some foreigners were among the hotel guests but it was not clear what their nationality was.

The Intercontinental Hotel, located on a hilltop and heavily protected like most public buildings in Kabul, was previously attacked by Taliban fighters in 2011.

It is one of two main luxury hotels in the city and had been due to host an information technology conference on Sunday. More than 100 IT managers and engineers were on site when the attack took place, Ahmad Waheed, an official at the telecommunications ministry, said.

An Afghan man walks past the Intercontinental Hotel after an attack by Taliban fighters and a response by Afghan security forces backed by NATO helicopters in Kabul on June 29, 2011. Shah Marai / AFP
An Afghan man walks past the Intercontinental Hotel after an attack by Taliban fighters and a response by Afghan security forces backed by NATO helicopters in Kabul on June 29, 2011. Shah Marai / AFP

The attack came days after a United Nations Security Council visit to Kabul to allow senior representatives of member states to assess the situation in Afghanistan.

Many details of the incident were still unclear, but Interior ministry spokesman Najib Danish said a private company had taken over security about three weeks ago.

The US embassy in Kabul had issued a warning to US citizens on Thursday, saying, "We are aware of reports that extremist groups may be planning an attack against hotels in Kabul."

The State Department said it was monitoring the situation and was in contact with Afghan authorities to determine whether any US citizens had been affected.

Captain Tom Gresback, spokesman for the NATO-led Resolute Support mission in Afghanistan, said they were also watching closely but it was not clear whether international forces took part in suppressing the attack.

"Afghan National Defense and Security Forces are leading the response efforts. According to initial reports, no Resolute Support or (US forces) members were injured in this incident," he said in an emailed statement.

Although the NATO-led Resolute Support mission says the Taliban has come under pressure after the United States increased assistance to Afghan security forces and stepped up air strikes against insurgents, security remains precarious.

As pressure on the battlefield has increased, security officials have warned that the danger of attacks on high-profile targets in Kabul and other cities would increase.

After repeated attacks in Kabul, notably an incident last May in which a truck bomber killed at least 150 people outside the German embassy, security has been further tightened.

While it shares the same name, the hotel in Kabul is not part of InterContinental Hotels Group (IHG), which issued a statement in 2011 saying that "the hotel Inter-continental in Kabul is not part of IHG and has not been since 1980".

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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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