UN shuts mission in Afghanistan's Kandahar


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KANDAHAR, Afghanistan // The United Nations said today it had temporarily withdrawn foreign staff and shut its mission in Kandahar, the Afghan city where security has deteriorated ahead of a major military offensive. UN spokeswoman Susan Manuel said some foreign staff in the Kandahar office had been moved to the capital Kabul for their safety, and Afghan staff there had been told to stay home. She would not say how many international staff had been withdrawn and how many had stayed behind or whether a specific threat was behind the decision.

"The security situation has gotten to the point where we needed to withdraw them yesterday," she said. "We hope people can go back and keep doing what they have been doing. We see it as a very temporary measure." Nato forces are planning the biggest military offensive of the nearly nine-year-old war in coming months in and around Kandahar, the biggest city in the south and heartland of the Taliban movement.

Under the plans, expected to unfold beginning in June, about 8,000 US and Canadian troops will secure rural areas around the city while a newly-deployed brigade of 3,500 US troops escorts 6,700 Afghan police into urban areas. In all, the offensive will involve some 23,000 Nato ground troops and Afghan police. The offensive is the cornerstone of a "surge" strategy by US President Barack Obama, employing the bulk of the 30,000 extra troops he is dispatching to Afghanistan this year to turn the tide against a mounting Taliban insurgency.

Nato commanders have been playing down the military aspect of the Kandahar operation, insisting in public that the emphasis will be on political efforts, but it will still be the biggest offensive of the war by far, and the Taliban have vowed to fight. The last few weeks have seen a surge in attacks and assassinations in the city of about 500,000 people. Bomb strikes have occurred almost daily, insurgents have carried out several major suicide bombings and raids over the past few weeks, and a deputy mayor was gunned down last week.

Kandahar's provincial council chief, President Hamid Karzai's half-brother Ahmad Wali Karzai, said the United Nations was overreacting by withdrawing its staff. "We strongly condemn this act by the UN to pull out of Kandahar. This is an irrational decision without consulting with local authorities," he told a news conference. "The situation is not as bad as the UN views it," he said. "They aren't here for a party. They know they are in war zone. This move will leave a bad impression on citizens of Kandahar."

The United Nations mission in Kandahar serves as a regional hub for the southern part of the country, including neighbouring Helmand province, where there are no international UN staff. The mission includes UN agencies that carry out a broad range of humanitarian work. The United Nations withdrew hundreds of its international staff from Afghanistan last year after five foreign workers were killed in an attack on a guesthouse where they lived in Kabul. Most of those have returned to more secure accommodation.

* Reuters

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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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THE BIO

Mr Al Qassimi is 37 and lives in Dubai
He is a keen drummer and loves gardening
His favourite way to unwind is spending time with his two children and cooking