Militiamen loyal to Yemen's president Abdrabu Mansur Hadi launch a rocket during clashes with Houthi rebels in the port city of Aden's Breiqa district on April 25, 2015. Saleh Al Obeidi / AFP
Militiamen loyal to Yemen's president Abdrabu Mansur Hadi launch a rocket during clashes with Houthi rebels in the port city of Aden's Breiqa district on April 25, 2015. Saleh Al Obeidi / AFP

Clashes rage in Yemen despite calls for peace talks



TAEZ // Fierce fighting raged on Saturday in south Yemen between Iran-backed rebels and loyalists of exiled president Abdrabu Mansur Hadi, as pressure mounted for the warring factions to hold political talks.

The Houthi rebels, who have overrun large parts of the country and forced Mr Hadi to flee overseas, have demanded a complete end to a month of Saudi-led air strikes against them as a condition for UN-sponsored talks.

At least 92 people were killed in airstrikes and clashes on Saturday in towns in the south of the impoverished country, strategically located next to Saudi Arabia and key shipping routes.

There were also heavy clashes in Taez city.

Former strongman Ali Abdullah Saleh, who still holds sway over army units allied with the Shiite rebels, late on Friday urged the Houthis to heed UN demands to withdraw from territory they have seized.

US secretary of state John Kerry also called on the anti-government forces to enter into political dialogue to end a conflict that the UN says has killed more than 1,000 people since late March.

“This has to be a two-way street,” Mr Kerry told reporters, adding: “We need the Houthi and we need those that can influence them to make sure that they are prepared to try to move ... to the negotiating table.”

In the key port city of Aden and in the adjacent Lahj province alone, 46 rebels died in ongoing clashes and 12 hours of intense airstrikes that lasted until early Saturday, a military source said.

A medic in Aden said eight pro-Hadi militiamen were killed and 32 were wounded.

The military source and pro-Hadi militiamen said coalition warships were also taking part in the shelling.

Warplanes’ targets included the rebel-held presidential palace which was Mr Hadi’s last refuge before he fled to neighbouring Saudi Arabia last month, military officials said.

The coalition has kept up airstrikes days after announcing its campaign was entering a new phase aimed at resuming the political process, delivering aid and fighting terrorism.

Airstrikes also hit the rebel-held Al Anad air base in Lahj north of Aden, which housed US troops supporting a long-running drone war against Al Qaeda before the fighting forced them to withdraw.

Residents in Lahj said the rebels had captured “dozens” of civilians they accused of aiding the coalition by giving them information on rebel targets.

Government officials earlier gave a toll of 38 killed in clashes in the southern towns of Daleh and Loder.

The UN says millions have been affected by the conflict and are struggling to access healthcare, water, food and fuel.

* 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.

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