A damaged building is pictured in the war-torn southwestern city of Taiz, Yemen August 17, 2016. Anees Mahyoub / Reuters
A damaged building is pictured in the war-torn southwestern city of Taiz, Yemen August 17, 2016. Anees Mahyoub / Reuters
A damaged building is pictured in the war-torn southwestern city of Taiz, Yemen August 17, 2016. Anees Mahyoub / Reuters
A damaged building is pictured in the war-torn southwestern city of Taiz, Yemen August 17, 2016. Anees Mahyoub / Reuters

Coalition wants urgent talks over MSF Yemen pullout


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ADEN // The Saudi-led coalition fighting rebels in Yemen is seeking urgent talks with Doctors Without Borders (MSF) over the charity’s withdrawal of staff from six hospitals in the north of the country.

The medical charity said “indiscriminate bombings” by all sides had made it lose confidence in the security situation for its facilities. The coalition responded, saying, “We very much regret MSF’s decision to evacuate staff from six hospitals in northern Yemen. We are seeking urgent discussions with MSF to understand how we can work together to resolve this situation.” The charity’s work “under difficult circumstances” was greatly valued in Yemen, added the coalition.

MSF’s decision came after 19 people died last Monday in an air raid on Abs hospital which MSF supports in the rebel-held northern province of Hajja.

The Saudi-led coalition has come under criticism over air strikes but has issued repeated assurances that it uses highly accurate laser and GPS-guided weapons and verifies targets many times to ensure civilian casualties are avoided. The coalition, which includes UAE military forces, is also conducting an independent investigation into the Abs incident and an air raid on a Quoranic school which was also in rebel-held territory. A statement from the coalition said, “The coalition is committed to full respect for international humanitarian law in the conduct of our operations in Yemen.”

Meanwhile on the second day of an offensive, pro-government forces inched closer to breaking the year-long Houthi siege on the southern city of Taez. The Yemeni army captured a vital road which was the only remaining route between the rebel held part ofTaez province and the port of Aden, which is in government hands.

Dhia Al Haq, commander of the popular resistance — which supports the government — in Al Dhabab, on the outskirts of Taez, said Al Dhaba fighters had linked up with fighters from Taez city and pushed back the Houthis to Sharab roundabout, whereupon some fled into Ibb province.

The commander said retaking the road was the first step in a two-step plan to break the siege. The second step will be to clear landmines from the road and eliminate Houthi snipers from the surrounding hills.

“ The road is heavily mined so we must concentrate on sweeping the area to avoid unnecessary loss of life among the fighters,” said the commander. He added that there were women combatants among his forces, as well as first-aiders tending to the wounded and distributing water.

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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.”