Flying above the Yellow Sea between the Korean Peninsula and China, a French naval crew scans the ocean surface for signs of contraband headed for North Korea.
The team is part of an international mission enforcing UN sanctions on Pyongyang, flying surveillance trips from the US Futenma base in Japan's Okinawa.
“The UN sends us information on vessels suspected of illicit behaviour” and then a flight plan is drawn up, said Guillaume, the lieutenant commander who leads the team and can only be identified by his first name.
On board their Falcon 200 aircraft, the team of six uses radar as well as ships' AIS — the automatic identification system that transmits information including a vessel's identity and its route.
But their best tool remains visual observation: two crew members sit next to the plane's windows, scanning the ocean surface with binoculars and taking photographs.
“We're the eyes of the United Nations in the area,” said Guillaume.
Suddenly, the team is on alert: a ship has been spotted with its AIS deactivated, a move considered suspect behaviour.
The pilots reroute the plane, making two passes at an altitude of less than 150 metres, looking for the boat's name on its stern and trying to establish radio contact with its crew.
Briefing the team before the flight, Guillaume stressed the importance of a “cordial and professional response” in instances of suspicious behaviour.
“In the context of the international tensions in the area, the goal is to avoid poisoning the situation. We have to be firm but courteous.”
A bit further away, the team spots two stationary ships, hull to hull.
A first pass reinforces suspicions: pumping pipes connect the larger of the ships, whose waterline indicates it is fully loaded, to the smaller one, a merchant ship.
The latter is “ideal for carrying contraband, but could also simply be refuelling fishermen”, a team member explains.
When contact is established with the larger boat, the crew claims no knowledge of why the smaller vessel is attached.
The French team gathers as much information as possible on the vessels to send to the UN, which will investigate for breaches of Resolutions 2375 and 2397 limiting the sale, supply and transfer of natural gas and petroleum to North Korea.
If a breach is found, a case could move forward against the ships and their owners.
The team arrived in Japan from their base in French Polynesia in mid-October.
A mission for profit
French forces have participated in the surveillance missions regularly since 2018, alongside eight other countries and under the supervision of the Enforcement Coordination Cell responsible for implementing UN resolutions.
For France, the missions are also a way to increase its profile in the region, after the 2019 unveiling of its Indo-Pacific defence strategy.
France has 1.6 million citizens and a vast exclusive economic zone of nine million square kilometres in the region, which has particular strategic value given Beijing's growing territorial ambitions and US-China tensions.
And its mission under the UN aegis also illustrates “its interest in the region beyond its Indo-Pacific priorities,” said Hugo Decis, a research analyst at the International Institute for Strategic Studies in London.
It confirms “the capacity of French forces to work with their partners and allies and in that sense contributes to France's credibility as a power, even if a secondary one, in the Pacific.”
match details
Wales v Hungary
Cardiff City Stadium, kick-off 11.45pm
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
MATCH INFO
Uefa Champions League semi-final, first leg
Bayern Munich v Real Madrid
When: April 25, 10.45pm kick-off (UAE)
Where: Allianz Arena, Munich
Live: BeIN Sports HD
Second leg: May 1, Santiago Bernabeu, Madrid
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How to watch Ireland v Pakistan in UAE
When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.
Killing of Qassem Suleimani
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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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