Beijing policies driving Chinese Uighurs into ISIL’s hands, US study says


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BEIJING // Tough religious restrictions on Muslim minorities in China’s far west may have driven more than 100 to join ISIL, according to a US think tank.

Beijing has long claimed that ISIL is recruiting Uighurs from the mainly Muslim region of Xinjiang, and blamed outside forces for fomenting deadly acts of violence there and elsewhere in China that have claimed hundreds of lives.

At the same time, authorities have banned or strictly controlled the observance of certain Muslim practices, such as growing beards and fasting during Ramadan, saying they are symbols of “Islamic extremism”.

Those policies “could be a push factor driving people to leave the country and look elsewhere for a sense of ‘belonging’”, the Washington, DC-based New America Foundation wrote in a study of leaked registration documents for ISIL fighters.

The findings were based on data from more than 3,500 foreign recruits provided by a defector from the organisation.

Of those, 114 came from Xinjiang, the study says, making it the fifth highest contributor of fighters among the provinces and regions named in the data — after three areas in Saudi Arabia and one in Tunisia.

Overall, recruits were more likely to come from “regions with restive histories and tense local-federal relationships”, the report said.

The nominally autonomous Chinese area offered ISIL rich recruitment potential due to “significant economic disparities between the ethnic majority Han Chinese and the Uighur Muslim population” and “substantial state repression”, it said.

Beijing regularly accuses what it says are exiled separatist groups such as the East Turkestan Islamic Movement (ETIM) of being behind attacks in Xinjiang, which has seen a wave of deadly unrest.

Britain’s House of Lords passed an order last week adding the group to a list of terror organisations.

But many independent experts doubt the strength of overseas Uighur groups and their links to global terrorism, with some saying China exaggerates the threat to justify tough security measures in the resource-rich region.

All the Xinjiang recruits named in the ISIL documents listed their place of origin as Turkestan or East Turkestan, the name for the region often used by separatists.

Even so, the study found that the recruits had no prior experience with jihad, presumably including ETIM, raising questions about China’s official narrative of radicalisation in Xinjiang.

On average, the fighters from Xinjiang were less educated, less well travelled, and more likely to be married than others who sought to join ISIL. They also claimed only a low level of religious training.

The data included a number of registration forms for children, including one as young as 10, the paper said, and “several of the forms for these children explicitly stated they joined ISIL with their families”.

In March 2014, 31 people were knifed to death at a train station in Kunming, in southwestern China, with four attackers killed, with Xinjiang separatists blamed and state media dubbing it “China’s September 11”.

Two months later a bomb rocked the main train station in the Xinjiang regional capital Urumqi as president Xi Jinping was wrapping up a visit, and authorities launched a “strike hard” campaign in the area.

Later that year 39 people were killed in a bloody market attack in Urumqi.

The crackdown has seen mass trials and multiple executions.

* Agence France-Presse

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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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